Conditional sale of surplus land - update

RNS Number : 9383Y

Norcros PLC

31 January 2014

 



31 January 2014

Norcros

("Norcros", the "Group" or the "Company")

Conditional sale of surplus land - update

Norcros, the market leading supplier of innovative branded showers, taps, bathroom accessories, tiles and adhesives, announces that the conditional contract to sell part of its surplus freehold land to Optimisation Developments Limited, a subsidiary of WM Morrison Supermarkets plc (together "Morrisons") is the subject of a dispute between the two parties, and the Board now considers it unlikely that Morrisons will proceed in line with the contract.

As announced in August 2011, the conditional contract to sell this surplus land for gross cash proceeds of £8.25m was dependent on obtaining acceptable planning consent for the site. The Group estimated the land required certain infrastructure developments amounting to approximately £5.65m thereby generating expected net proceeds of £2.6m on the disposal.

Planning consent was obtained on the Highgate site, Tunstall in May 2013 for a 71,000 square feet foodstore for Morrisons and associated non-food retail units. However, a dispute as to whether this constitutes an acceptable planning consent has not been resolved, and more recently Morrisons have been refusing to proceed in line with the contract. The Board and its legal advisers believe the planning consent to be acceptable, and is considering its next actions regarding the contract, including seeking compensation from Morrisons.

The Board will consider the carrying value of the surplus land in question and report on this at its preliminary results announcement in June 2014. There is no change to the Group's forward guidance for underlying earnings or net debt as a result of this update.

ENQUIRIES:

Norcros plc	Tel: [phone]
Nick Kelsall, Group Chief Executive
Martin Payne, Group Finance Director
Hudson Sandler	Tel: [phone]
Nick Lyon
Charlie Jack
Katie Matthews

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 four 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

·     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 1750 people. The Company is listed on the London Stock Exchange. For further information please visit the Company website: http://www.norcros.com/

 

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