TIDMNXR
RNS Number : 9335Q
Norcros PLC
03 March 2021
3 March 2021
Trading Update
Norcros plc ("Norcros" or the "Group"), a market leading
supplier of high quality and innovative bathroom and kitchen
products, is today providing a trading update for the ten month
period ended 7 February 2021.
FY21 upgrade: strong trading momentum continues
The strong recovery we experienced in the second quarter has
improved markedly with revenue in the four months from the half
year to 7 February 2021, 117% of the prior year on a like for like
constant currency basis. This sustained momentum continues to
reflect share gains as the Group's leading market positions also
benefit from the increased activity levels in the repair,
maintenance, and improvement (RMI) segments in the UK and South
Africa. Private new housebuild activity in the UK also continues to
remain robust and an important element of this outperformance.
Revenue % of prior year
H1 Q2 4 months 10 months
to to 7 Feb
(LFL(2) (LFL(2) ) 7 Feb (LFL(2)
) )
---------- ----------- --------------- ----------
UK 84% 104% 115% 96%
---------- ----------- --------------- ----------
South Africa 66% 87% 113% 83%
---------- ----------- --------------- ----------
South Africa
(at CC(1) ) 79% 106% 122% 95%
---------- ----------- --------------- ----------
Group 78% 98% 114% 92%
---------- ----------- --------------- ----------
Group (at CC(1)
) 83% 105% 117% 96%
---------- ----------- --------------- ----------
(1) CC refers to constant currency basis
(2) LFL (like for like) adjusts prior year revenue for period
pro-rating of number of weeks
Our UK business has performed strongly in the four months since
the half year ended 30 September 2020, with revenue at 115% of the
prior year on a like for like basis. This is a particularly
resilient performance against the backdrop of COVID-19 lockdowns
and considerable supply chain disruption in the period. All
businesses traded well in the period particularly Triton and Merlyn
who continued to take market share, benefiting from their leading
brands, supply chain infrastructure and stock availability.
Our South African business also performed strongly, particularly
Tile Africa which has continued to experience significant revenue
growth in the retail renovation market. Revenue for the four months
since the half year was 122% of prior year on a like for like
constant currency basis.
Strong balance sheet and financial position
This robust trading performance and continued operational focus
has reduced Group net debt (pre-IFRS 16) further since the half
year to circa GBP5.7m at 7 February 2021 compared to GBP36.4m at
the start of the financial year. The Group is in a strong financial
position with significant liquidity and funding headroom and
against all its banking covenants.
Dividend
The Board recognises the importance of dividends and will, based
on the Group's financial position and subject to the continued
strong momentum in trading performance, be recommending a final
dividend for the year ending 31 March 2021.
Outlook
Norcros continues to win share in its two main geographical
markets, reflecting the Group's strong competitive and financial
position. The Board remains confident that the Group's leading
market positions, established brands, broad distribution channels
and experienced management team will deliver further growth,
notwithstanding that economic conditions are likely to remain
uncertain as our main markets continue to adjust to the impact of
the pandemic. Consequently, it is now expected that reported
underlying profit for the year to 31 March 2021 will be no less
than GBP28m on a post-IFRS 16 basis and ahead of current market
expectations of circa GBP25m.
The Group's next scheduled trading update will be on 15 April
2021.
Enquiries
Norcros plc Tel: 01625 547700
Nick Kelsall, Chief Executive
Officer
Shaun Smith, Chief Financial Officer
Hudson Sandler Tel: 0207 796 4133
Nick Lyon
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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