Norcros PLC Trading Update (1708M)
October 11 2016 - 1:00AM
UK Regulatory
TIDMNXR
RNS Number : 1708M
Norcros PLC
11 October 2016
11 October 2016
("Norcros", the "Group" or the "Company")
Trading Update
Norcros, the market leading supplier of innovative branded
showers, taps, bathroom accessories, tiles and adhesives will
announce its interim results for the half year ended 30 September
2016 on 17 November 2016. In advance of this, the Group is
providing the following trading update.
Trading
Group underlying operating profit(1) 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
GBP128.8m (2015: GBP118.7m), 8.5% higher than the prior year and
9.2% higher on a constant currency basis. The growth has been
driven by the strong performances from our South African business
and the recently acquired businesses.
Half year to 30 September
2016
--------------------------------------------
Reported Constant Constant
currency currency
LFL(2)
--------- --------- ---------- ----------
UK 8.8% 8.8% -5.0%
South
Africa 8.0% 10.0% 10.0%
Group 8.5% 9.2% -0.2%
--------- --------- ---------- ----------
UK revenue for the first half was 8.8% higher than the prior
year. On a like for like basis(2) UK revenue was 5.0% lower than
the prior year, consistent in the pre and post Brexit quarters.
Market conditions softened post Brexit with the Group's second
quarter performance illustrating the underlying resilience of its
business portfolio. The Board continues to monitor activity levels
and remains focused on improving performance through management
action, self-help initiatives, excellent customer relations and
investment in new product development.
The Board is pleased with the performance of our recent
acquisitions. Abode has integrated well into the Group and
performed in line with the Board's expectations in the six months
since it was acquired. Croydex, acquired in June 2015, also
continued to make good progress and recently launched a range of
products through our South African retail outlets alongside a Vado
branded brassware range.
Our South African business again delivered strong revenue growth
in the first half of the year, 10.0% higher than the prior year on
a constant currency basis and 8.0% higher on a reported basis,
continuing the sustained progress of recent years.
Financial position
Closing net debt is expected to be around GBP28m (2015:
GBP29.2m). Working capital and cash management remain a key focus
for the Group.
Outlook
With the continuing strong performance of our South African
business and the contribution from the recently acquired businesses
offsetting the challenging UK market experienced in the first half,
the Board remains confident that the Group will continue to make
progress in line with its expectations for the year to 31 March
2017.
(1) Underlying operating profit excludes IAS 19R administrative
expenses, acquisition related costs and exceptional operating
items
(2) LFL / like for like excludes Abode first half revenues
(acquired 31 March 2016) and Croydex quarter one revenues (acquired
25 June 2015)
ENQUIRIES:
Norcros plc Tel: 01625 547 700
Nick Kelsall, Group Chief
Executive
Shaun Smith, Group Finance
Director
Hudson Sandler Tel: 0207 796 4133
Nick Lyon
Charlie Jack
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:
-- 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
-- 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 - A leading manufacturer and supplier of ceramic tiles in the UK
-- Norcros Adhesives - Manufacturer of tile & stone adhesives, grouts and related products
-- 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 2,000 people. The Company is listed on the London Stock
Exchange. For further information please visit the Company website:
http://www.norcros.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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