Norcros PLC Trading Update (6043J)

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RNS Number : 6043J

Norcros PLC

09 April 2015

9 April 2015

Norcros

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

Trading Update

Norcros, the market leading supplier of innovative branded showers, taps, bathroom accessories, tiles and adhesives will announce its preliminary results for the year ended 31 March 2015 on 18 June 2015. In advance of entering the close period, the Group is providing the following trading update.

Trading

Group underlying operating profit(1) for the year is expected to be in line with market expectations.

Group revenue for the year is expected to be in the region of GBP221m (2014: GBP218.7m). Revenue growth in both our UK and South Africa segments was stronger in the second half of the year compared to the first half:-

 
 Revenue                          26 weeks   52 weeks 
                                    to 31      to 31 
                                     Mar        Mar 
-------------------------------  ---------  --------- 
 
 UK                                  +1.4%      +0.7% 
 
 South Africa 
 
        *    Reported               +14.6%      +3.1% 
 
        *    Constant currency      +19.1%     +15.0% 
 
 Group 
 
        *    Reported                +5.4%      +1.5% 
 
        *    Constant currency       +6.6%      +5.0% 
 
 

UK revenue for the year was 0.7% higher than the prior year, with a stronger performance in the second half. Our UK trade business, which continued to benefit from new house building activity and a strong performance in Ireland, offset our performance in the UK retail sector which continued to be challenging.

Our South African business again delivered double digit constant currency growth in the second half of the year, resulting in full year revenue growth of 15.0% on a constant currency basis and 3.1% on a reported basis. During the second half the South African Rand stabilised compared to the prior year, resulting in a strong performance from the South African business on a reported basis with revenue growth of +14.6%.

Financial position

Closing net debt is expected to be below market expectations at around GBP15m (2014: GBP26.9m). This includes the GBP6.5m proceeds from the sale of surplus freehold properties completed on 2 March 2015.

(1) Underlying operating profit is defined as operating profit before non-underlying and exceptional operating items.

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, taps, bathroom accessories, ceramic wall and floor tiles and adhesive products with operations primarily in the UK and South Africa.

   --      Based in the UK, Norcros operates under four brands: 
   --     Triton Showers - Market leader in the manufacture and marketing of showers in the UK 

-- Vado - A leading manufacturer and supplier of taps, mixer showers, bathroom accessories and valves

   --     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 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 and building adhesives 

-- Norcros is headquartered in Wilmslow, Cheshire and employs around 1750 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 company news service from the London Stock Exchange

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