LONDON (Alliance News) - Norcros PLC Thursday said group underlying operating profit will be in line with its expectations in the first half of its financial year, as revenue is expected to be higher than the prior year.
The supplier of showers, taps and bathroom accessories said that group revenue is expected to grow 9.3% in the six months to September 30 to GBP118.7 million from GBP108.6 million, with growth in both the UK and South Africa.
It said that UK revenue rose 9.8%, or 1.8% on a like-for-like basis, as it benefited from new house-building activity. Recently-acquired bathroom furnishings business, Croydex, also performed in line with expectations in the three months since acquisition, Norcros said.
Meanwhile, the South African business delivered 8.4% growth in sales in the first half, as self-help measures and market share gain helped offset tough market conditions.
"All of our businesses continue to perform well notwithstanding the mixed market conditions and the recent weakening of the rand. The improved manufacturing efficiencies in Johnson Tiles UK have been sustained and we have made good progress in integrating the Croydex business into the group. The board remains confident that the group will continue to make progress in line with market expectations for the year to March 31, 2016," Norcros said in a statement.
Shares in Norcros were trading up 0.8% at 209.60 pence Thursday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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