Norcros PLC - Cheshire-based kitchen and bathroom products supplier - Says strong second quarter recovery has "improved markedly" as revenue for the fourth months ended February 7 rises to 117% of the prior-year figure on a like-for-like constant currency basis. Experiences share gains as leading market positions benefit from increased repair, maintenance, and improvement activity levels in UK and South Africa. UK private new household activity also still "robust", an important contributor to outperformance year-on-year, with UK revenue at 115% of prior year like-for-like in the four-month period and South Africa at 122% of prior year like-for-like.
Net debt as February 7 around GP5.7 million, down from GBP36.4 million at start of financial year. Says in "a strong financial position with significant liquidity and funding headroom and against all its banking covenants".
Given financial position, and subject to continued momentum in trading performance, Norcros intends to recommend a final dividend for its financial year ending March 31. Expects to post underlying profit of no less than GBP28 million, ahead of around GBP25 million market expectations.
Current stock price: 251.00; up 6.8% on Wednesday
Year-to-date change: up 24%
By Anna Farley; annafarley@alliancenews.com
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Norcros (NXR)