Interim Management Statement

RNS Number : 9780A

Norcros PLC

10 February 2011

 



Norcros PLC

("Norcros", the "Group" or the "Company")

Interim Management Statement

Norcros, the home consumer products group, publishes its Interim Management Statement and this includes financial information covering the 17 week period to 30 January 2011.

The Group has maintained the strong trading performance reported in our interim statement in November 2010. Our UK businesses have continued to make significant progress despite the disruption caused by the extreme weather in December and the ongoing uncertainty over the impact of the tax increases and public sector cuts on consumer and business confidence. In South Africa the turnaround achieved at the interim stage has been sustained.

Group revenues for the comparable like-for-like period increased by 15.8% and by 10.2% on a constant currency basis relative to last year. This revenue growth reflects an increase of 10.9% in our UK operations and, on a constant currency basis, increases of 7.8% and 21.4% in our South African and Rest of the World operations respectively.

UK

Our UK businesses have maintained their strong performance and have continued to gain market share.

Triton, the UK market leader in domestic showers, increased UK revenues by 4.2%, with the majority of this growth being derived from the retail sector where further new product listings and our excellent customer service continued to drive outperformance.  Export revenues, representing c16% of Triton's total revenues, were maintained in line with last year despite the ongoing economic problems in Ireland, our largest export market. As a result, Triton's total revenues were 3.5% higher.

Johnson Tiles, a leading UK manufacturer and supplier of ceramic tiles, continued to trade strongly and outperform the market with total revenues in the period ahead by 16.7%. Significantly higher retail revenues resulted in total UK revenues being 26.0% ahead of the equivalent period last year reflecting the success of new product ranges and additional business secured following the administration of a former UK competitor. Export revenues, representing c13% of Johnson Tiles' total revenues, were 22.6% lower reflecting both product availability issues and the timing of project completions. The commissioning of the additional kiln and inkjet capacity announced last year remains on track and is expected to be operational early in the next financial year.

Revenues in our UK adhesives business were 50% higher driven by new account gains in both trade and retail segments.

South Africa

Overall revenues were 21.2% ahead on a Sterling reported basis and 7.8% higher in constant currency despite the continuing low levels of building activity.

Revenues at our retail operation, Tile Africa, increased by 6.1% in constant currency as our retail sector maintained the strong performance reported earlier in the year (like for like retail revenues increased by    10.9%). In Johnson Tiles, our tile manufacturing operation, constant currency revenues increased by 29.4% as further progress was made to increase sales to the independent sector and to drive growth in contiguous export markets. TAL, our adhesive operation increased revenues by 5.8% reflecting the strength of our product offer and technical service support.

Outlook

Management remains focused on driving market share gains in our UK operations and securing additional operational improvements in our South African businesses. The Board believes that, as a result of the investment in new product development, operational improvements and sales and marketing initiatives, combined with the strength of the Group's leading market positions, Norcros is well positioned to make further progress.

10 February 2011

ENQUIRIES:

Norcros plc	Tel: [phone]
Joe Matthews, Group Chief Executive
Nick Kelsall, Group Chief Executive - Designate
College Hill	Tel: [phone]
Mark Garraway
Adam Aljewicz

For further information please visit the Company website: www.norcros.com

 

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