Norcros Regulatory News (NXR)

13 March 2025

Pension Scheme Valuation Update

Positive outcome to the 2024 triennial review and reduction in cash contribution from 2027

Norcros plc, the market leading designer and supplier of high quality sustainable bathroom and kitchen products (the "Company"), is pleased to announce that it has concluded negotiations with the Trustee of the Company's legacy defined benefit pension scheme (the "Scheme") in relation to the triennial actuarial valuation undertaken on 1 April 2024. This announcement follows the update provided by the Group within its Interim Results statement and presentation published on 21 November 2024.

The 1 April 2024 valuation has now been agreed, subject to completion of the formal documentation, with the prior actuarial deficit from April 2021 of £36.0m being updated to an actuarial deficit of £11.7m on a technical provision basis, representing a funding level of 96%.

The schedule of cash contributions to June 2027 of £3.8m per annum (indexed by CPI) that was agreed in the 2021 valuation, will continue. As a result of the new agreement, once the Scheme is deemed to be in surplus on a technical provision basis, contributions will be directed to an escrow arrangement. Cash contributions post June 2027 are expected to be less than c.£1m per annum and will only be paid to the extent that asset performance or any escrow funds do not cover ongoing scheme administration fees. The escrow arrangement minimises the risk that the Scheme becomes overfunded with a trapped surplus.

The valuation outcomes will now be submitted to the Pensions Regulator in the usual way.

James Eyre, Norcros Chief Financial Officer, commented:

"We are pleased that the Company and Trustee's strong and constructive relationship has produced a further positive outcome to the triennial valuation process and, importantly, that the Company's cash contribution materially decreases from June 2027. The agreement will mean that the Scheme should remain in a healthy funding position and we look forward to continuing to work positively with the Trustee."

Notes:

1) Key features of the 2024 actuarial valuation include: discount rate gilts +0.5% (previously gilts +1.20%), aligned mortality 'base table' to actual Plan's member death experience and application of the latest actuarial models and CMI 2023 tables.

2) As a result of indexation by CPI, the cash contribution agreed in 2021 of £3.8m per annum is currently £4.2m per annum.

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Notes to Editors

Norcros is a market leading group of brands specialising in design led, sustainable bathroom and kitchen products across the UK, Ireland, South Africa, and select export markets. Each of our brands offers mid-premium product ranges distinguished by their innovation, design, and commitment to sustainability, all backed by industry leading service to our trade and retail customers.

Through a strategic blend of acquisitions and organic growth, Norcros has become the UK and Ireland's number one bathroom products group. We see significant potential for further expansion within this large and fragmented market, accelerating growth and capturing market share through continued acquisitions, organic development, operational excellence, and meaningful ESG capabilities.

Norcros encompasses the renowned brands, Triton, Merlyn, Grant Westfield, Vado, Croydex, and Abode in the UK, and Tile Africa, TAL, Johnson Tiles South Africa, and House of Plumbing in South Africa.

Norcros is headquartered in Wilmslow, Cheshire and employs around 2,100 people. The Company is listed on the London Stock Exchange. For further information please visit the Company website: http://www.norcros.com