Last checked at 7 Sep 2010 07:00
Norcros
("Norcros", the "Group" or the "Company")
Trading Update
Norcros, the home consumer products group, is pleased to announce that the encouraging start to the current financial year, which was reported in the IMS of 28 July 2010, has been maintained. The Board is confident that this progress can be sustained and expects Group trading profit for the current financial year to significantly exceed the Directors' expectations.
Group revenues for the 22 week period to 29 August 2010 increased by 14.1% and by 7.4% on a constant currency basis relative to the comparable period last year, reflecting an increase of 8.7% in our UK operations and constant currency increases of 5.0% and 10.8% in our South African and Rest of the World operations respectively.
UK
Both of our key UK businesses have maintained their robust performance despite continuing tough market conditions.
Triton, the UK market leader in domestic showers, has continued to outperform the market reflecting the ongoing strength of its product offering and its excellent customer service. Further new product initiatives are planned to maintain its strong market position.
Johnson Tiles, a leading UK manufacturer and supplier of ceramic tiles, has continued to make good progress benefiting from the success of its recent range introductions and its investment in additional sales and marketing resource. On the back of this success, and the opportunities to secure new business following the administration of a competitor, the Board has approved investment in additional ink jet printing equipment and manufacturing capacity.
South Africa
The performance of our South African business continues to benefit from the operational initiatives and the changes in the senior management structure implemented in the last financial year. For the 22 week period to 29 August 2010 the business made a small trading profit compared to a significant trading loss for the comparable period last year. The Board is increasingly confident that the encouraging progress made to date will be maintained and that a substantial turnaround in performance in the current year is achievable.
Dividends and Dividend Policy
Given the improvement in the Group's trading performance and its strong balance sheet, the Board expects to announce the restoration of a progressive dividend policy when it announces its interim results in November, subject to continuing satisfactory trading results, cash flow and the terms of the Group's bank facility agreement.
Summary
The Group has maintained its encouraging start to the current financial year and created sufficient momentum in its businesses to mitigate the impact of the uncertain outlook for UK consumer spending, the cut-backs in UK public sector investment and the sluggish recovery in the South African economy. The Board believes that a solid platform for continued organic growth is being established and that the medium term prospects for the Group are promising.
7 September 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 | 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 |
| Mark Garraway |
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| Adam Aljewicz |
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For further information please visit the Company website: www.norcros.com