Last checked at 28 Jul 2010 07:00
Norcros plc
("Norcros", "the Group" or "the Company")
Interim Management Statement
Norcros, the home consumer products group, publishes its Interim Management Statement covering the 13 week period to 27 June 2010 ahead of its Annual General Meeting to be held at 11.00am today at the Stanneylands Hotel, Wilmslow, Cheshire, SK9 4EY.
Group revenues for the 13 week period increased by 16.0% and by 8.7% on a constant currency basis relative to the comparable period last year, reflecting an increase of 11.8% in our UK operations and constant currency increases of 3.7% and 13.6% in our South African and Rest of the World operations respectively.
UK
Our UK businesses have maintained their strong performance despite the continuing tough market conditions.
Triton, the UK market leader in domestic showers, continued to outperform the market growing UK revenues by 20.9%. Growth was most significant in the retail sector where the recent success of new product listings and our excellent customer service continued to drive outperformance. Export revenues, representing c15% of Triton's total revenues, increased by 11.8% despite no discernible improvement in market activity levels. As a result, Triton's total revenues were 19.4% higher.
Johnson Tiles, a leading UK manufacturer and supplier of ceramic tiles, continued to perform well benefiting from the success of its new range introductions over the last twelve months. The combination of increased retail revenues and flat trade revenues resulted in total UK revenues 1.0% higher. Export revenues, representing c17% of Johnson Tiles' total revenues, were 25.0% higher following a particularly strong performance in the Middle East and France. Johnson's total revenues in the period increased by 4.4%.
Revenues in our UK adhesives business were 14.3% higher than the comparable period last year reflecting new account gains and growth in contract business.
South Africa
Overall revenues were 19.9% ahead on a Sterling reported basis and 3.7% higher in constant currency despite the continuing low levels of building activity and subdued consumer spend.
Revenues at our retail operation, Tile Africa, increased by 0.9% in constant currency, partly reflecting the store closure programme implemented in the first half of the previous financial year. Like for like revenues increased by 8.5%. In Johnson Tiles, our tile manufacturing operation, which is more dependent on new building activity, we experienced constant currency revenues in line with last year. TAL, our adhesive operation, continued to perform strongly relative to the market, reflecting account gains and the strength of our product range and technical service support. Revenues were 14.3% ahead of last year in constant currency.
Disposal of investment in RJ Beaumont & Co (Pty) Limited
As previously announced, in June 2010, the Group disposed of its 25.5% interest in RJ Beaumont & Co (Pty) Limited for a net final consideration, after costs, of £ 4.4m, realising an exceptional profit on disposal of £2.7m. The net proceeds have been used to reduce bank debt.
Outlook
The Group has made an encouraging start to the current financial year but the Board remains appropriately cautious about prospects for the remainder of the year. The UK outlook for consumer spending remains uncertain and the decline in public sector investment will impact activity levels whilst the economy in South Africa is forecast to show only a slow recovery. Against this background, management continues to focus on driving market share gains in our UK businesses and realising the benefits of the operational improvements implemented in our South African retail and tile manufacturing operations. As a result we look forward to making further progress in the remainder of the financial year.
28 July 2010
ENQUIRIES:
| Norcros plc | Tel: 01625 547700 |
| Joe Matthews, Group Chief Executive |
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| Nick Kelsall, Group Chief Executive - Designate |
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| Oriel Securities | Tel: 020 7710 7600 |
| Emma Griffin |
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| David Arch |
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| Jonathan Walker |
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| College Hill | Tel: 020 7457 2020 |
| Adam Aljewicz |
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| Mark Garraway |
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For further information please visit the Company website: www.norcros.com