AGM Trading Statement

RNS Number : 3156F

Norcros PLC

27 July 2016

 

27 July 2016

Norcros

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

AGM Trading Statement

Norcros plc ("Norcros" or the "Group"), the market leading supplier of innovative branded showers, taps, bathroom accessories, tiles and adhesives, issues the following trading update covering the 13 week trading period to 3 July 2016, ahead of its Annual General Meeting which takes place at 11.00am today at The Mere Golf Resort & Spa, Chester Road, Mere, Knutsford, Cheshire, WA16 6LJ.

Trading Update

The Group's overall trading for the first quarter was in line with the Board's expectations.

Group revenue for the 13 week period was 18.5% higher on a constant currency basis compared to the same period last year and 13.0% higher in Sterling terms reflecting a weaker South African Rand. On a constant currency like for like basis (excluding acquisitions*) Group revenue was 2.6% higher than the same period last year.

UK revenue was 18.3% higher than the same period last year including revenues from Croydex and Abode, with both businesses performing in line with the Board's expectations. On a like for like basis (excluding acquisitions*), UK revenue was 5.0% lower than in the same period last year reflecting the ongoing challenging conditions in a number of UK retail channels notwithstanding a resilient trade performance. This was more than offset by the sustained progress in our South African business which grew revenue by 19.0% on a constant currency basis and by 3.0% in Sterling terms.

Although it is too early to judge the effect the EU referendum result may have on activity levels in our businesses the Board is monitoring the position and will effect mitigating actions in response to any change in demand.

Nick Kelsall, Group Chief Executive, commented:

"Whilst the UK retail sector continues to be challenging, the sustained progress in South Africa, together with the successful integration of Croydex and Abode, means the Board remains confident that the Group will continue to make progress in line with its expectations for the current year."

*Croydex which was acquired in June 2015 and Abode which was acquired in March 2016

ENQUIRIES:

Norcros plc	Tel: [phone]
Nick Kelsall, Group Chief Executive
Shaun Smith, Group Finance Director
Hudson Sandler	Tel: [phone]
Nick Lyon
Charlie Jack
Katie Cohen

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 six brands:

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

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

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

o  Abode - A leading niche designer and distributor of high quality kitchen taps, bathroom taps, and kitchen sinks

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

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

·     Based in South Africa, Norcros operates under three brands:

o  Tile Africa - Chain of retail stores focused on ceramic and porcelain tiles, and associated products such as sanitary ware, showers and adhesives

o  Johnson Tiles South Africa - Manufacturer of ceramic and porcelain tiles

o  TAL - The leading manufacturer of ceramic and building adhesives

·     Norcros is headquartered in Wilmslow, Cheshire and employs around 2,000 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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