Norcros Regulatory News (NXR)

18 Apr 2008 07:00

Norcros PLC18 April 2008 Norcros plc ("Norcros", the "Group" or the "Company") Pre-close Trading Update Norcros, the home consumer products group with operations primarily in the UKand South Africa, issues the following trading update for the year ended 30March 2008 in advance of the preliminary results which will be announced onThursday 19th June 2008. Overview We expect to report that Group revenues will have increased by c.5% on aconstant currency basis to be in the region of £168 million (2007: £160million). UK Triton, the UK market leader in domestic showers, has continued to perform well,maintaining its share in the electric segment and growing market share in themixer segment. Overall revenues increased by c.1.7 % with domestic revenues upby c.4.4%. H & R Johnson, a leading UK manufacturer and supplier of ceramic tiles and tileadhesives, made good progress in the Trade and Multiple sectors. Domesticrevenues were c.5.6% ahead, offsetting the expected decline in export revenues.Good progress continues to be made with our UK adhesives business with revenuegrowth of c.40%. Our UK business is continuing to trade resiliently despite increasinglydifficult consumer markets and higher energy costs. South Africa In South Africa overall revenues increased by c.12% on a constant currencybasis. Our retail operation, Tile Africa, increased revenues in constantcurrency by c.11%. Four new stores have been opened and four existing storeshave been upgraded. In addition, two former franchise stores have been acquired. TAL, our adhesive operation, increased revenues in constant currency by c.13%and Johnson Tiles, our tile manufacturing operation, increased revenues by c.7%in constant currency. As previously reported, our operations in South Africa continue to be impactedby high interest rates, consumer uncertainty, power disruption and input costincreases. However, our investment in new stores and store refurbishment isdelivering revenue benefits and has strengthened the market position of ourbusiness. Rest of the World Our wholly-owned subsidiary in Australia, selling tiles under the "Johnson"brand, increased revenues by c.12% on a constant currency basis and continues totrade well. Summary We expect to report full year trading profit of c. £16 million (2007: £15.3million) and profit before tax and exceptional items in line with marketexpectations at c.£12.5 million (2007: £7.4 million), reflecting the benefits oflower net finance costs. The Group remains in a strong financial position with net debt in the region of£47 million at the end of March 2008 and an £80 million banking facilityavailable until 2012. Whilst we do not envisage conditions improving in theshort term and acknowledge the economic risks in the UK and South Africa, weremain confident that our businesses are well positioned to take advantage ofmedium-term opportunities and outperform our underlying markets. 18 April 2008 ENQUIRIES Norcros plcJoe Matthews, Group Chief Executive Tel: 01625 547700Nick Kelsall, Group Finance Director AltiumPhil Adams Tel: 0161 831 9133Mike Fletcher College Hill Tel: 020 7457 2020Mark GarrawayAdam Aljewicz For further information please visit the Company website: www.norcros.com This information is provided by RNS The company news service from the London Stock Exchange