Interim Management Statement

RNS Number : 9865G

Norcros PLC

11 February 2010

 



Norcros

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

Interim Management Statement

Norcros, the home consumer products group, publishes its Interim Management Statement covering the 18 week period to 31 January 2010.

Group revenues for the period increased by 13.2% and by 3.5% on a constant currency basis relative to the comparable period last year, reflecting a revenue increase of 13.3% in our UK operations and constant currency revenue declines of 8.1% and 14.3% in our South African and Rest of the World operations respectively.

UK

Our UK businesses performed strongly, given the challenging market conditions and the severe weather in January.

Triton, the UK market leader in domestic showers, outperformed the market growing UK revenues by 22.2% reflecting the benefit of new product introductions and successful marketing programmes. Export revenues, representing c16% of Triton's total sales, increased by 7.7% although the Irish housing market remains severely depressed. Triton's overall revenues were 19.6% higher.

Johnson Tiles, a leading UK manufacturer and supplier of ceramic tiles, continued the strong UK retail performance experienced in the first six months reflecting the successful new range introductions. Despite lower trade activity total UK revenues were ahead by 2.3%. Export revenues, representing c19% of Johnson Tiles' total sales, were 40.9% higher following strong performances in France and new projects in the Middle East. Overall revenues in the period increased by 8.0%. Revenues in our UK adhesives business were in line with the comparable period last year.

South Africa

Overall revenues were 13.5% higher in Sterling but declined 8.1% in constant currency reflecting weak economic conditions and significantly reduced building activity

Revenues of our retail operation, Tile Africa, declined by 7.0% in constant currency impacted by the store closure programme. Like for like revenues were 2.8% lower. Johnson Tiles, our tile manufacturing operation, which is more dependent on new building activity, reported revenues 27.3% lower in constant currency. TAL, our adhesive operation, performed strongly relative to the market reflecting account gains and the strength of our product range and technical service support. Revenues were 2.1% lower in constant currency.

The new management team has continued to implement the previously announced operational improvement programmes in our tile manufacturing and retail businesses. Implementation has proceeded well but it is too early to judge their success.

Financial Position

In December 2009 the Group raised £27.7m net of expenses via a firm placing and placing and open offer. The Group used these proceeds to reduce its debt, thereby lowering its interest costs and establishing a strong financial position. Net debt at 31 January 2010 was £19.2m.  

Prospects

The Board is alert to the risks for consumer and public spending around the forthcoming General Election and its aftermath. Yet the operational and marketing performance of our UK businesses gives confidence that this year's progress can be sustained. Similarly, our adhesives operation in South Africa shows every sign of retaining its market leadership and resilient performance. We believe also that we are taking the right steps to stem the losses at Tile Africa and Johnson Tiles in the second half. The Group continues to trade in line with our expectations at the time of the December Capital Raising

11 February 2010

ENQUIRIES:

Norcros plc	Tel: [phone]
Joe Matthews, Group Chief Executive
Nick Kelsall, Group Finance Director
Oriel	Tel: [phone]
Emma Griffin
David Arch
Jonathan Walker
College Hill	Tel: [phone]
Mark Garraway
Adam Aljewicz

For further information please visit the Company website:

www.norcros.com

 

END

 

 

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