Last checked at 12 Apr 2011 07:00
Norcros plc
("Norcros" or "the Group")
Trading Update and Analyst Site Visit
Norcros, the home consumer products group, will announce its preliminary results for the year ended 31 March 2011 on Thursday 23 June 2011. In advance of entering the Close Period, the Group is providing the following trading update. The period under review consisted of 53 weeks compared to 52 weeks last year.
Overview
The year concluded with the Group maintaining the strong trading performance referred to in the Group's last IMS, issued on 10 February 2011.
All our UK businesses have continued to make good progress and have gained market share despite the ongoing uncertainty over the impact of public sector cuts on consumer and business confidence.
In South Africa, the turnaround in operating performance achieved at the interim stage has been sustained notwithstanding continued low levels of building activity.
We expect that Group revenues for the 53 week period will be in the region of £195m (2010:£169.6m), representing growth of c 7% on a constant currency and LFL number of weeks basis. Group trading profit is expected to be in the region of £ 11.5 m (2010: profit of £7.3m) and a Benchmark profit before taxation* of approximately £ 9.7 m (2010: profit of £3.4m). The expected results will be ahead of market expectations of a £11.2m trading profit and Benchmark profit before taxation* of £9.4m.
Financial position
Closing net debt (before prepaid finance costs) has reduced during the period and is expected to be in the region of £13m (2010:£18.9m) principally reflecting the strong trading performance of the Group.
As outlined in our interim report in November 2010, we have continued to invest for future growth as demonstrated by the investment in additional capacity in both our UK Tiles and UK Adhesives operations.
Outlook
Management remains focussed on delivering market share gains in all our UK operations, realising the benefits of the recent investment in capacity in our UK Tile and UK Adhesive businesses and securing further benefits in South Africa from the continuous operational improvement programmes.
The economic environment remains uncertain and market conditions are still challenging. Nevertheless the Board is encouraged by the strong forward momentum in our businesses reflecting the investment in new product development, operational improvements, marketing initiatives and the success of our focussed sales strategy. We believe Norcros is strategically and financially well positioned to make further progress.
Analyst Site Visit
Norcros will today host an event for analysts at its Johnson Tiles and Triton Showers operations in Stoke-on-Trent and Nuneaton.
The event is intended to provide a greater understanding of the Group's principal UK operations and no new material information will be provided.
Norcros plc | 01625 549 010 |
Nick Kelsall, Group Chief Executive |
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Martin Payne, Group Finance Director |
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College Hill | 020 7457 2020 |
Mark Garraway |
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Helen Tarbet |
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Note: there will be a presentation of the preliminary results to analysts at 09.30am on Thursday 23 June at the offices of College Hill, The Registry, Royal Mint Court, London, EC3.
* Benchmark profit before taxation is defined as profit before exceptional operating items, amortisation of costs of raising finance, movement on fair value of derivative financial instruments, discounting of property lease provisions, finance costs relating to pension schemes and the Group's share of post-tax results from its associates undertakings.