Interim Management Statement

RNS Number : 8402X

Norcros PLC

14 February 2013

 



14 February 2013

Norcros plc

("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 3 February 2013.

Trading

Group revenue for the 18 week period was 15.1% higher on a constant currency basis compared to the same period last year and 10.8% higher in Sterling reflecting a weaker South African Rand. This strong performance translates into year to date sales 11.6% higher on a constant currency basis compared to the same period last year and 6.5% higher in Sterling terms.

Although market conditions continue to remain subdued, UK revenue for the 18 week period was 9.5% higher compared to the same period last year, and is 6.5% higher year to date compared to the same period last year.

Johnson Tiles recorded a revenue increase of 15.9% for the 18 week period driven by the previously reported gains in B&Q which has implemented a major tile range review and new in-store tile shop. The UK trade sector and export markets remain challenging, and revenue in both segments continues to reflect weak construction activity levels and fragile consumer confidence. Despite these factors, year to date revenue is 16.6% higher than the same period last year.

It is pleasing to report that Triton has stemmed the year on year decline reported in previous statements, recording revenue for the 18 week period 1.5% higher than the same period last year. Year to date revenue is accordingly 4.6% lower compared to the same period last year. UK revenue for the 18 week period was 3.3% higher with a strong performance in the retail sector but a small decline in the trade sector. Year to date UK revenue is now 2.7% below the same period last year compared to an estimated market decline of 5%, reflecting market share gain. Export revenue, which is predominantly derived from Ireland and accounts for 14% of overall Triton revenue, was down 8.4% but still represents an improvement on performance earlier in the year, and leaves year to date export revenue 14.9% lower than the same period last year.

Our South African business has continued strong growth with revenue on a constant currency basis for the 18 week period 25.6% higher compared to the same period last year, and 20.5% higher year to date. A significantly weaker Rand compared to last year means reported Sterling revenues are 13.0% higher for the 18 week period, and 6.0% higher year to date. Further success in the South African DIY sector and Export markets for both TAL, our market leading adhesives business, and Johnson Tiles South Africa, our tile manufacturing business has been pleasing. Continued focus on supply chain, stock availability and product range extension in TAF, our leading retailer of wall and floor tiles, adhesive, showers, sanitaryware and bathroom fittings has also contributed to this strong performance. Manufacturing performance in Johnson Tiles South Africa continues to improve, but cost pressures and in particular energy costs have held back margin improvement.

Pension

In our Trading update of 4 October 2012 we announced that a consultation process was to start with UK employees with a view to closing the defined benefit section of its UK pension scheme to all future accrual from 31 March 2013. This process is progressing according to plan with the consultation process now complete and appropriate Trustee approvals received.

Outlook

Whilst the South African economic indicators are showing some signs of improvement, and despite the recent performance of Triton, general conditions in our markets remain challenging. Nevertheless, the strength of our brands, leading market positions, customer relationships, strong balance sheet, and the continued momentum in our Johnson Tiles South Africa business gives the Board confidence that the Group should continue to make progress in line with market expectations for the current year.

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 and building adhesives

·    Norcros is headquartered in Wilmslow, Cheshire and employs around 1600 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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