AGM Trading Statement

RNS Number : 8926F

Norcros PLC

21 July 2021

 

21 July 2021 

AGM Trading Statement

Norcros plc ("Norcros" or the "Group"), a market leading supplier of high quality and innovative bathroom and kitchen products, issues the following trading update covering the 13 week trading period to 4 July 2021, ahead of its Annual General Meeting which takes place at 11.00am today.

Trading Update

The Group's outperformance of the market experienced in the second half of the prior year has continued in the first quarter, driven by the strength of both the UK and SA RMI markets. Group revenue for the 13 week period was 117% higher than the COVID-19 impacted prior year (2020) on a reported basis. On a constant currency basis against the same period in 2019 Group revenue was 22% higher.

	Revenue increase on
	2020   2019
UK	96%	23%
South Africa	170%	13%
South Africa (at CC1)	143%	20%
Group	117%	19%
G roup (at CC1)	110%	22%

Our UK business has continued to perform strongly with revenue for the 13 week period 23% higher than in 2019 reflecting the increased activity in the RMI sector and market share gains with Triton and Merlyn continuing to perform extremely well.

Our South African business has also continued to outperform, with revenue for the 13 week period 20% higher than in 2019 on a constant currency basis with Tile Africa continuing to benefit from higher demand and market share gains in the retail renovation market. Whilst we have experienced some disruption from the recent period of social unrest the impact on our business to date has been limited and the current situation is stable. The safety and wellbeing of our employees remains our priority as we continue to monitor the position.

During the quarter the Group implemented a number of measures to counter the well documented supply chain disruption and increases in freight and input costs to maintain margins.

Nick Kelsall, Chief Executive Officer, commented:

"We have continued to outperform the market in the first quarter of this financial year with our focussed strategy, and market leading brands, supply chain, and customer service ensuring we capitalise on the strength of our proposition and the robust demand in our main markets. A normalisation of consumer spending patterns and continued supply chain and COVID-19 disruption mean that market conditions are likely to remain uncertain. Notwithstanding, the Board remains confident that the Group will continue to win market share and make progress in line with its expectations for the current year."

^1. CC refers to constant currency basis  

 

Enquiries

Norcros plc	Tel: [phone]
Nick Kelsall, Chief Executive Officer
Shaun Smith, Chief Financial Officer
Hudson Sandler	Tel: [phone]
Nick Lyon Sophie Miles

Notes to Editors

Norcros is a market leading supplier of high quality and innovative bathroom and kitchen products with operations primarily in the UK and South Africa.

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

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

· Merlyn - The UK and Ireland's No.1 supplier of shower enclosures and trays to the residential, commercial and hospitality sectors

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

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

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

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

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

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

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

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

· TAL - The leading manufacturer of ceramic and building adhesives

· House of Plumbing - Market leading supplier of specialist plumbing materials

· 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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