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RNS Number : 6790V
Norcros PLC
10 April 2019
("Norcros", the "Group" or the "Company")
Trading Update
Norcros, a market leading supplier of high quality and
innovative bathroom and kitchen products, will announce its
preliminary results for the year ended 31 March 2019 on 12 June
2019. In advance of this, the Group is providing the following
trading update.
Trading
Group underlying operating profit(1) for the year is expected to
be in line with the Board's expectations, reflecting a very
resilient performance in the context of particularly challenging
conditions in our major markets. This will represent the Group's
tenth consecutive year of revenue and underlying operating profit
growth.
Group revenue for the year is expected to be in the region of
GBP331m (2018: GBP300.1m), 10.3% higher than the prior year on a
reported basis, 11.6% higher on a constant currency basis, and 2.4%
higher on a constant currency like for like basis(2) .
Reported Constant Constant Currency LFL(2)
Currency
FY FY H1 H2 FY
---------
UK +13.6% +13.6% -4.1% +3.7% -0.2%
--------- ---------- --------- -------- --------
South
Africa +3.7% +7.5% +7.1% +7.9% +7.5%
--------- ---------- --------- -------- --------
Group +10.3% +11.6% -0.3% +5.1% +2.4%
--------- ---------- --------- -------- --------
UK revenue was 13.6% higher than the prior year, principally
reflecting the full year contribution from Merlyn which has
continued to perform strongly since acquisition. The UK performance
on a like for like basis(2) reflected strong revenue growth of 3.7%
in the second half driven by market share gains as new range
listings were secured benefiting from access to the Group's
extensive customer base and its strong financial position.
Our South African business again delivered strong revenue growth
despite a challenging market environment, 7.5% higher than the
prior year on a constant currency basis and 3.7% higher on a
reported basis, continuing the outperformance of recent years.
Financial position
Net debt at 31 March 2019 is expected to be around GBP36m (2018:
GBP47.1m), reflecting strong cash generation in the second half of
the year.
As previously announced, Norcros completed the acquisition of
the South African based business RAP Plumbing Supplies
(Proprietary) Limited, trading as House of Plumbing ("House of
Plumbing") on 1 April 2019 and will consolidate the financial
results of the business from this date.
Nick Kelsall, Group Chief Executive, said:
"The Group expects to deliver its tenth consecutive year of
revenue and underlying operating profit growth despite the
uncertain economic and political backdrop in our two main
markets.
It is particularly pleasing to note the strong performances of
Merlyn and Triton as well as the return to profitability of Johnson
Tiles UK following the restructuring of the business, as announced
in April 2018.
We are also pleased to have recently added the House of Plumbing
business to our portfolio as we look to accelerate the growth of
our South African business in the important commercial and
specification market segments.
Our performance continues to demonstrate the resilience of our
Group with its market leading positions, well-established brands,
superior product and service offer and strong financial position.
Whilst market conditions are likely to remain challenging, the
Board is confident that these attributes together with our very
focussed strategy will continue to drive market outperformance
leading to further progress in the year ahead."
(1) Underlying operating profit excludes IAS 19R administrative
expenses, acquisition related costs and exceptional operating
items
(2) LFL / like for like excludes Merlyn revenues (acquired 23
November 2017)
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
Nelly Akpaka
Notes to Editors
-- Norcros is a 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 - 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 four 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
-- House of Plumbing - Market leading supplier of specialist plumbing materials
-- Norcros is headquartered in Wilmslow, Cheshire and employs
around 2,200 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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END
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