Trading Update

RNS Number : 9901T

Norcros PLC

07 October 2010

 



Norcros Plc

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

Trading Update

Norcros, the home consumer products group is pleased to issue the following update for the 27 week period ended 3 October 2010 in advance of the half year results announcement to be made on 18 November 2010.

Overview

The encouraging start to the current financial year, which was reported in the IMS of 28 July 2010 and in the trading update of 7 September 2010, has been maintained.

Group revenues for the 27 week period are expected to be in the region of £96.7m (2009, 26 week period: £83.0m). Like-for-like revenues, adjusting for the extra trading week, are expected to be in the region of £93.2m representing a 12.3% increase (6.4% increase on a constant currency basis). This reflects an increase of approximately 5.8% in our UK operations and constant currency increases of approximately 6.6% and 9.1% in our South African and Rest of the World operations respectively.

Group trading profit (for the 27 week period) is expected to be not less than £6.0m (2009, 26 weeks: £3.5m) with Group profit before tax and exceptional items expected to be not less than £3.4m (2009: loss of £1.7m).

Both of our key UK businesses, Triton Showers and Johnson Tiles, delivered a robust performance reflecting the continued success of our new product introductions and excellent customer service. Our South African business made a small trading profit compared to a significant trading loss last year, further reflecting the benefit of the operational initiatives that have been implemented.   

As previously announced, the Group will report an exceptional gain of £2.7m following the sale, in June 2010, of our 25.5 per cent interest in RJ Beaumont & Co Pty Limited ("Beaumont"), a trade investment in Australia. The cash consideration received was £4.4m, net of costs of approximately £0.1m. The carrying value of the investment in the Group's balance sheet as at 31 March 2010 was £1.7m.

Financial position

Net debt (before prepaid finance costs) at 3 October 2010 is expected to be in the region of £15.0m (2009: £48.9m) principally reflecting the reduction in debt following the capital raising of £27.7m (net of fees) in December 2009, the proceeds from the sale of Beaumont noted above and the ongoing focus on cash management.

Dividends and Dividend Policy

As previously announced the Board expects to be in a position to restore a progressive dividend policy when it announces its interim results in November, subject to continuing satisfactory trading results, cash flow and the terms of the Group's bank facility agreement.

Summary

The Group's trading performance continues to be resilient despite the backdrop of continuing uncertainty in both the UK and South African economies. Whilst appropriately cautious about the wider economic situation during the remainder of this year, the Board is confident that further progress can be sustained.  

7 October 2010

ENQUIRIES:

Norcros plc	Tel: [phone]
Joe Matthews, Group Chief Executive
Nick Kelsall, Group Chief Executive - Designate
College Hill	Tel: [phone]
Mark Garraway
Adam Aljewicz

For further information please visit the Company website: www.norcros.com

 

END

 

 

TSTDQLFBBBFBFBL