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(Alliance News) - Norcros PLC said its performance in the second quarter climbed above the levels seen a year earlier, as the bathroom and kitchen products firm saw a "marked recovery" in both its UK and South African units.
At constant currency and on a like-for-like basis, revenue for the second quarter ended October 4 topped its performance from the second quarter of financial 2020. Total revenue for the quarter was at 91% of the levels seen a year earlier.
For the whole of the first half, revenue came in 25% lower annually at GBP135.3 million from GBP181.2 million, Norcros said.
"Since the AGM update in July, the strong trading momentum has continued with a marked recovery in demand in the second quarter in both the UK and South African businesses. This has resulted in the group delivering a sustained level of profitability in the second quarter combined with excellent cash generation as our pre-Covid-19 inventory levels continued to satisfy customer demand," Norcros added.
Underlying operating profit, pre-IFRS 16, will come in 30% lower year-on-year at GBP12 million from GBP17.1 million. IFRS 16 governs the financial treatment of leases.
Norcros added that it does not expect to pay a first half dividend, after declaring a 3.1 pence payout a year earlier.
"However, the board will consider recommending a final dividend for the full year subject to the group's continued strong trading performance, financial position and outlook," the company added.
Norcros shares were 8.7% higher at 167.10p each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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