Interim Management Statement

RNS Number : 5080X

Norcros PLC

16 February 2012

 



16 February 2012

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

Interim Management Statement

Norcros, the market leading supplier of innovative branded showers, tiles and adhesives, publishes its Interim Management Statement covering the 18 week period to 5 February 2012.

Overview

Group revenues for the 18 week period increased by 0.9% on a constant currency basis compared to last year, but were lower by 3.1% on a reported basis. This leaves year to date Group revenues 5.6% higher on a constant currency basis and 4.2% higher on a reported basis than last year. Market conditions in the UK and South Africa were particularly challenging in December reflecting the earlier and longer than expected Christmas shutdowns in our major markets. However, Group revenues in January showed some improvement and we are confident that we have maintained our leading positions in our core markets.

UK

Revenues in our UK businesses for the 18 week period were 3.0% lower than last year, with year to date revenues 4.7% higher than last year.

Johnson Tiles, our leading UK manufacturer and supplier of ceramic tiles, saw revenues for the 18 week period increase by 1.1% versus last year. For the first time, the comparable period last year includes the full revenue effect of the demise of a key UK competitor in June 2010. Year to date revenues are 10.3% higher. UK revenues for the 18 week period were 1.0% higher with share gains in retail outweighing a marginal revenue decline in trade business, and export revenues were 1.7% higher with supply constraints noted in our interim results beginning to be overcome.

Triton, our market leading shower business, saw revenues for the 18 week period decline by 7.8% versus the comparable period last year, leaving year to date revenues 1.8% lower. UK revenues declined by 7.3% in the 18 week period, with lower retail and trade activity exacerbated by customer destocking. However, trade revenues in January rebounded strongly helped by the major launch of the next generation T80Z Fast Fit range. Export revenues in the 18 week period declined by 10.8% versus the comparable period last year, principally continuing to reflect the weakness of the Irish market.

Revenues in our UK adhesives business for the 18 week period were 5.0% higher than the comparable period last year, with year to date revenues 20.6% higher. Housebuilder and other national contract specification wins noted in our Interim report have helped drive further UK market share gains in the 18 week period.

South Africa

Revenues in our South African businesses for the 18 week period were 10.8% higher on a constant currency basis versus the comparable period last year, but 2.1% lower on a reported basis. On a year to date basis, revenues are 9.6% higher on a constant currency basis and 4.7% higher on a reported basis.

Johnson Tiles South Africa, our tile manufacturing operation, saw third party revenues on a constant currency basis 20.3% higher reflecting increased business in the DIY retail segment. Encouraging signs of progress have also been made in manufacturing performance in January 2012 where the benefits of recent management changes and investment in process improvements are beginning to show through.

Revenues at our retail operation, Tile Africa, increased by 6.6% on constant currency basis. This has been driven by price increases and the continuing benefits of the store refurbishment and operational improvement programmes.

TAL, our market leading adhesive business, saw third party revenues grow 19.0% on a constant currency basis, and as with Johnson Tiles South Africa, has secured additional business with a leading DIY retailer.

Outlook

Since the announcement of our interim results in November 2011 consumer confidence has become weaker and market conditions more challenging. Trading profit* for the year is anticipated to be marginally below the Board's previous expectations although lower cash finance costs and a lower effective tax rate should offset any shortfall. The Board remains confident that through the ongoing self help programmes and growth initiatives Norcros will continue to gain market share and make solid progress.

*operating profit before exceptional operating items

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, ceramic wall and floor tiles and adhesive products with operations primarily in the UK and South Africa.

·    In the UK, Norcros operates under three brands:

·    Triton Showers - Market leader in the manufacture and marketing of showers in the UK

·    Johnson Tiles - A leading manufacturer and supplier of ceramic tiles in the UK

·    Norcros Adhesives - Manufacturer of tile & stone adhesives, grouts and related products

·    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, industrial and building adhesives

·    Norcros is headquartered in Wilmslow, Cheshire and employs around 1700 people. The company is listed on the London Stock Exchange. For further information please visit the recently upgraded Company website: http://www.norcros.com/

 

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