Trading Update

RNS Number : 1675B

Norcros PLC

12 April 2012

 



12 April 2012

 Norcros

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

Trading Update

Norcros, the market leading supplier of innovative branded showers, tiles and adhesives, will announce its preliminary results for the year ended 31 March 2012 on Thursday 21^st June 2012. In advance of entering the close period, the Group is providing the following trading update. The period under review consisted of 52 weeks compared to 53 weeks last year.

Overview

The financial year finished in line with market expectations.

Group revenues for the 52 week period are expected to be in the region of £200m (2011: £196.1m) which represents year on year growth of 5.5% on a constant currency, like for like number of weeks basis. Group trading profit* is expected to be approximately £12.1m (2011: £11.7m), and benchmark profit before taxation** is expected to be approximately £10.7m (2011:£10.2m).

Our UK businesses have increased market share in the year despite tough markets, delivering year on year revenue growth of 4.1% on a like for like number of weeks basis. Both Johnson Tiles and Norcros Adhesives delivered strong revenue increases in the year. Full year revenues at Triton were marginally down on the previous year, although following the challenging Christmas period reported in our IMS of 16 February 2012, trading improved in the last 8 weeks of the year and was marginally ahead of the same period last year.

Our South African businesses continued to grow revenues with Johnson Tiles South Africa and TAL being particularly successful in gaining business in both domestic and export markets. This has driven revenues 9.6% higher on a constant currency, like for like number of weeks basis. The encouraging signs of efficiency improvement experienced in January 2012 in our tile manufacturing performance have continued.

Financial position

Closing net debt before prepaid finance costs is expected to be in the region of £19m (2010:£12.4m) and has increased in the year principally due to the previously announced exit of the onerous leasehold at Springwood Drive which cost £7.8m but which has resulted in ongoing cash savings of approximately £3.3m per annum.

Outlook

The outlook for both our UK and South African markets remains challenging. Nonetheless, our businesses have continued to demonstrate their ability to gain market share and strengthen their leading market positions. The Board remains confident that through the ongoing programme of growth initiatives and self help actions Norcros will continue to make further progress.

*Defined as Group operating profit before exceptional items and other operating income

**Group profit before tax, exceptional items, and non cash finance costs  

ENQUIRIES:

Norcros plc	Tel: [phone]
Nick Kelsall, Group Chief Executive
Martin Payne, Group Finance Director
Hudson Sandler	Tel: [phone]
Nick Lyon
Charlie Jack
Katie Matthews

Notes to Editors

·    Norcros is a leading supplier of high quality and innovative showers, ceramic wall and floor tiles and adhesive products with operations primarily in the UK and South Africa.

·    In the UK, Norcros operates under three brands:

·    Triton Showers - Market leader in the manufacture and marketing of showers in the UK

·    Johnson Tiles - A leading manufacturer and supplier of ceramic tiles in the UK

·    Norcros Adhesives - Manufacturer of tile & stone adhesives, grouts and related products

·    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, industrial and building adhesives

·    Norcros is headquartered in Wilmslow, Cheshire and employs around 1700 people. The company is listed on the London Stock Exchange. For further information please visit the recently upgraded Company website: http://www.norcros.com/

 

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