Trading Statement

RNS Number : 3286K

Norcros PLC

16 April 2010

 



Norcros plc

("Norcros" or "the Group")

Trading Update

Norcros, the home consumer products group, notes the recent movements in its share price and is accordingly announcing its planned trading update in advance of entering the Close Period. The Group will announce its preliminary results for the year ended 31^st March 2010 on Tuesday 22 June 2010. 

Overview

The year concluded on a positive note with trading maintaining the improving trend referred to in the Group's last IMS, issued on 11^th February 2010.

In the UK, all our operations performed well despite the ongoing difficult market conditions.  

In South Africa, our businesses continued to be impacted by very weak economic conditions and significantly reduced building activity. Notwithstanding, our adhesives operation benefitted from its market leadership position and delivered a resilient performance and we have significantly reduced the losses at our Tile Africa and Johnson Tiles businesses in the second half of the year. 

We expect that Group revenues will be in the region of £169m (2009:£154.2m) with  Group trading profit in the region of £7.1m (2009:£7.0m) and a Group loss before tax and exceptional items of approximately £2.5m (2009: profit of £2.9m).  These results will be ahead of market expectations of a £6.8m trading profit and loss before tax and exceptional items of £4.9m.

As previously announced we also expect to report exceptional charges of approximately £2.5m relating principally to retail store closures in South Africa. In addition, having regard to the continuing losses in our Greek associate business and the difficulties in the local economy there, the Board expects to recognise an exceptional charge of approximately £6m relating to the impairment and hedging costs of the Group's loan to its Greek associate. 

Financial position

The closing net debt position is expected to be in the region of £16.0m (2009:£45.8m) principally reflecting the reduction in debt following the capital raising of £27.7m (net of fees) in December 2009 and the ongoing intense focus on cash management.

Outlook

The performance of our UK businesses remains robust in spite of the continuing difficult economic conditions.  Operational improvements have been implemented in the South African tile manufacturing and retail businesses by the new management team and despite continuing market difficulties there, we are confident of re-establishing a solid base for future growth.

The outlook for our markets remains uncertain and we will continue to manage our costs and cash generation consistent with the tough trading environment. However, the Board believes that the Group's businesses are in a much stronger position to take advantage of the opportunities open to them.

Norcros plc Joe Matthews, Group Chief Executive Nick Kelsall, Group Finance Director	01625 549 010
Oriel  Emma Griffin / David Arch / Jonathan Walker	020 7710 7600

College Hill

Mark Garraway / Adam Aljewicz                                                                        020 7457 2020

Note: there will be a presentation to analysts at 09.30 on Tuesday 22^nd June at the offices of College Hill, The Registry, Royal Mint Court, London, EC3.

 

END

 

 

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