Last checked at 20 Feb 2020 07:00
20 February 2020
("Norcros", the "Group" or the "Company")
Trading update and impact of the Coronavirus
Norcros, a market leading supplier of high quality and innovative bathroom and kitchen products is today providing a trading update for the ten month period ended 2 February 2020 and an update on the potential impact of the Coronavirus.
Trading update
The Group has continued to win market share in its major markets despite conditions remaining challenging since its interim results were announced in November.
In the UK we have continued to benefit from share gains in the domestic market, with overall year on year revenue growth similar to what was achieved in the first half albeit with our export performance remaining subdued.
In South Africa we have seen no market improvement in the second half of the year, with activity levels in the construction sector in particular markedly lower at the start of our fourth quarter. In response to reduced demand we are evaluating a number of initiatives which will reduce costs and improve profitability. Notwithstanding the market environment, the House of Plumbing business continues to trade in line with our expectations, and we expect our combined South African business to generate underlying profitability for the year to 31 March 2020 marginally ahead of the 2019 financial year.
Impact of the Coronavirus
The Coronavirus has had little short term impact to date as our UK based stock levels have been sufficient to satisfy customer demand. However, based on the slower than anticipated return to full production at our China based suppliers we do now envisage that the supply chain disruption is likely to have some impact on the seasonally important remainder of this financial year and early next. The situation however remains fluid and is being closely monitored and actively managed.
Summary
The Board continues to remain confident that the Group's leading market positions, strong brands and financial strength will deliver further growth although in the short term it is now expected that underlying profitability for the year to 31 March 2020 will be below market expectations albeit ahead of last year.
The Group will provide a full year trading update on 16 April 2020.
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 Toby Andrews | |
Notes to Editors
·; Norcros is a market leading supplier of high quality and innovative bathroom and kitchen products with operations primarily in the UK and South Africa.
·; Based in the UK, Norcros operates under seven brands:
·; Triton - Market leader in the manufacture and marketing of showers in the UK
·; Merlyn - The UK and Ireland's No. 1 supplier of shower enclosures and trays to the residential, commercial and hospitality sectors
·; 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 - The 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 four 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
·; House of Plumbing - Market leading supplier of specialist plumbing materials
·; Norcros is headquartered in Wilmslow, Cheshire and employs around 2,200 people. The Company is listed on the London Stock Exchange. For further information please visit the Company website: http://www.norcros.com