TIDMNXR
RNS Number : 5109V
Norcros PLC
15 April 2021
15 April 2021
Trading Update
Norcros plc ("Norcros" or the "Group"), a market leading
supplier of high quality and innovative bathroom and kitchen
products, will announce its preliminary results for the year ended
31 March 2021(1) on 10 June 2021. In advance of this, the Group is
providing the following trading update.
Further upgrade: strong finish to year
In our 31 March 2021 trading update we increased our full year
profit guidance, reflecting the strong trading momentum within the
business. We have continued to outperform our previous expectations
in March and ended the year strongly. As a result, the Board now
expects underlying operating profit for the year to 31 March
2021(1) to be no less than GBP33m on a post-IFRS 16 basis, ahead of
both our previous underlying operating profit guidance for the year
of no less than GBP31m and the GBP32.3m reported last year.
Group revenue for the year is expected to be in the region of
GBP324m (2020: GBP342m), 95% of prior year on a reported basis and
101% of prior year on a constant currency like for like basis(2)
after adjusting the prior year for period pro-rating (53 weeks
versus 52).
The Group has seen a strong recovery in the second half with
revenue 120% of the prior year on a constant currency like for like
basis(2) compared to 83% in the first half of the year which was
severely impacted by the COVID-19 pandemic, particularly in the
first quarter.
Revenue % of prior year
Reported LFL(2)
FY H1 H2 FY
---------- ------------------
UK 98% 84% 115% 100%
---------- ---- ----- -----
South Africa 89% 66% 123% 91%
---------- ---- ----- -----
South Africa (at
CC(3) ) 102% 79% 130% 103%
---------- ---- ----- -----
Group 95% 78% 118% 97%
---------- ---- ----- -----
G roup (at CC(3)
) 99% 83% 120% 101%
---------- ---- ----- -----
Our UK business has continued to perform strongly with revenue
for the second half at 115% of prior year on a like for like
basis(2) reflecting the increased activity in the r epair,
maintenance, and improvement (RMI) sector. Triton and Merlyn have
both performed extremely well, gaining market share.
Our South African business also continued to outperform, revenue
for the second half was 123% higher on a like for like
basis(---------2) and 130% of prior year on a constant currency
like for like basis(2) with further growth, particularly in Tile
Africa, reflecting market share gains in the retail renovation
market.
Robust balance sheet and financial position
Due to the strong recovery in trading during the second half of
the year and the effective management of working capital, we expect
to end the year at 31 March 2021(1) with net cash of circa GBP10m
(on a pre-IFRS16 basis) compared to net debt of GBP36.4m at 31
March 2020.
Employees
It has been more than a year since the first lockdown and the
Board wishes to place on record its thanks to our employees for
their commitment and contribution in ensuring a safe workplace and
to this strong outperformance in this unprecedented year. Whilst
the progress of the COVID-19 vaccination programme is encouraging,
our priority continues to be the safety and wellbeing of our
people.
Nick Kelsall, Group Chief Executive, said:
"The Group has recovered very strongly from a period of
unprecedented uncertainty. Our performance on all fronts is a
testament to our business model and our employees, particularly
against the backdrop of challenging markets as demand adjusts to
the impact of the pandemic and Brexit. It is particularly pleasing
to see how well our businesses both in the UK and South Africa
responded, taking advantage of the growth opportunities in the RMI
segments and continuing to gain market share, benefitting from
their leading brands, supply chain infrastructure and stock
availability.
Whilst market conditions are likely to remain challenging, the
Board is confident that the Group's highly experienced management
teams, resilient business model, increased financial strength and
our focussed growth strategy will continue to drive outperformance
leading to further progress in the year ahead."
(1.) The accounting reference 'year to 31 March 2021' relates to
the 52-week accounting period commencing on 6 April 2020 and ending
4 April 2021
(2.) LFL (like for like) adjusts prior year revenue for 53 to 52
week period pro-rating
(3.) CC refers to constant currency basis
Enquiries
Norcros plc Tel: 01625 547700
Nick Kelsall, Chief Executive
Officer
Shaun Smith, Chief Financial
Officer
Hudson Sandler Tel: 0207 796 4133
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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTQZLFFFZLEBBD
(END) Dow Jones Newswires
April 15, 2021 02:00 ET (06:00 GMT)
Norcros (LSE:NXR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Norcros (LSE:NXR)
Historical Stock Chart
From Apr 2023 to Apr 2024
