Last checked at 12 Oct 2017 07:00
12 October 2017
("Norcros", the "Group" or the "Company")
Trading Update
Norcros, the market leading supplier of innovative branded showers, taps, bathroom accessories, tiles and adhesives will announce its interim results for the half year ended 30 September 2017 on 16 November 2017. In advance of this, the Group is providing the following trading update.
Trading
Group revenue and underlying operating profit1 in the first half is expected to be in line with the Board's expectations.
Group revenue for the first half is expected to be approximately £144.9m (2016: £128.8m), 12.5% higher than the prior year and 7.1% higher on a constant currency basis. The growth reflects a robust performance in our UK business and continued growth in our South African business:
Half year to 30 September 2017 | ||
Reported | Constant currency | |
UK | 8.4% | 8.4% |
South Africa | 21.0% | 4.8% |
Group
| 12.5%
| 7.1%
|
UK revenue for the first half was 8.4% higher than the prior year, reflecting growth in all channels, and benefitting in particular from our strong positions in the new housebuild sector and in selective export markets.
Our South African business again delivered revenue growth in the first half of the year, 4.8% higher than the prior year on a constant currency basis continuing the sustained progress of recent years. Revenue was 21.0% higher on a reported basis reflecting a stronger South African Rand.
Financial position
The Group continues to focus on working capital and cash management and as a result of this closing net debt is expected to have reduced to around £21m (2016: £27.5m).
Outlook
Against the backdrop of challenging market conditions, our performance demonstrates the strength of our market positions and the resilience of our diversified business portfolio delivering revenue growth in all UK sectors, strong growth in exports and sustained progress in South Africa. The Board remains confident that the Group will continue to make progress in line with its expectations for the year to 31 March 2018.
1 Underlying operating profit excludes IAS 19R administrative expenses, acquisition related costs and exceptional operating items
ENQUIRIES:
Norcros plc | Tel: 01625 547 700 |
Nick Kelsall, Group Chief Executive | |
Shaun Smith, Group Finance Director | |
Hudson Sandler | Tel: 0207 796 4133 |
Nick Lyon | |
Fern Duncan | |
This announcement is issued pursuant to DTR 4.2.2
Notes to Editors
·Norcros is a leading supplier of high quality and innovative showers, taps, bathroom accessories, ceramic wall and floor tiles and adhesive products with operations primarily in the UK and South Africa.
·Based in the UK, Norcros operates under six brands:
· Triton Showers - Market leader in the manufacture and marketing of showers in the UK
· Vado - A leading manufacturer and supplier of taps, mixer showers, bathroom accessories and valves
· Croydex - A market-leading, innovative designer, manufacturer and distributor of high quality bathroom furnishings and accessories
· Abode - A leading niche designer and distributor of high quality kitchen taps, bathroom taps and kitchen sinks
· Johnson Tiles - A leading manufacturer and supplier of ceramic tiles in the UK
· Norcros Adhesives - Manufacturer of tile & stone adhesives, grouts and related products
·Based in South Africa, Norcros operates under three brands:
· Tile Africa - Chain of retail stores focused on ceramic and porcelain tiles, and associated products such as sanitary ware, showers and adhesives
· Johnson Tiles South Africa - Manufacturer of ceramic and porcelain tiles
· TAL - The leading manufacturer of ceramic and building adhesives
·Norcros is headquartered in Wilmslow, Cheshire and employs around 2,000 people. The Company is listed on the London Stock Exchange. For further information please visit the Company website: http://www.norcros.com