Trading Update

RNS Number : 5946B

Norcros PLC

08 October 2015

 



8 October 2015

Norcros

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

Trading Update

Norcros, the market leading supplier of innovative branded showers, taps, bathroom accessories, tiles and adhesives is pleased to announce the following trading update for the half year ended 30 September 2015.

Trading

Group underlying operating profit¹ in the first half is expected to be in line with the Board's expectations.

Group revenue for the first half is expected to be approximately £118.7m (2014: £108.6m), 9.3% higher than the prior year and 12.0% higher on a constant currency basis. Of this constant currency growth, 6.5% reflected like for like organic growth, and 5.5% was attributable to the Croydex business which was acquired on 25 June 2015.

Half year to 30 September 2015
	Reported	Constant currency	Constant currency LFL2
UK	9.8%	9.8%	1.8%
South Africa	8.4%	16.9%	16.9%
Group	9.3%	12.0%	6.5%

UK revenue for the first half was 9.8% higher than the prior year. On a like for like basis excluding Croydex, UK revenue was 1.8% higher than the prior year. Whilst the UK retail sector remained challenging, good year on year growth has been recorded in our UK trade sector which continued to benefit from new house building activity.

Croydex, our market-leading, innovative designer, manufacturer and distributor of high quality bathroom furnishings and accessories, has performed in line with the Board's expectations in the three months since it was acquired by the Group.

Our South African business again delivered strong revenue growth in the first half of the year, 16.9% higher than the prior year on a constant currency basis and 8.4% higher on a reported basis, with self-help measures and market share gain helping offset tough market conditions.

Financial position

Closing net debt is expected to be around £29.5m (2014: £20.0m), and includes a £20.1m outflow relating to the acquisition of Croydex Group Ltd.

Outlook

All of our businesses continue to perform well notwithstanding the mixed market conditions and the recent weakening of the Rand. The improved manufacturing efficiencies in Johnson Tiles UK have been sustained and we have made good progress in integrating the Croydex business into the Group. The Board remains confident that the Group will continue to make progress in line with market expectations for the year to 31 March 2016.

¹ Underlying operating profit excludes IAS 19R administrative expenses, acquisition related costs and exceptional operating items

² LFL / like for like excludes the impact of the Croydex acquisition

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

·      Based in the UK, Norcros operates under five brands:

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

·    Vado - A leading manufacturer and supplier of taps, mixer showers, bathroom accessories and valves

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

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

·    Croydex - A market-leading, innovative designer, manufacturer and distributor of high quality bathroom furnishings and accessories

·      Based 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 1800 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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