TIDMNXR
RNS Number : 7004C
Norcros PLC
13 October 2022
13 October 2022
Trading Update
Norcros plc ("Norcros" or the "Group"), a market leading
supplier of high quality and innovative bathroom and kitchen
products, will announce its interim results for the 26-week period
ended 2 October 2022 on 9 November 2022. In advance of this, the
Group is providing the following trading update.
Trading
The Group has delivered a robust H1 performance reflecting the
strength of our customer proposition and the breadth of our
distribution channels.
Group revenue for the 26 week period is expected to be at record
levels at approximately GBP220m (2021: GBP200.9m 2020: GBP135.3m;
2019: GBP181.2m), 10% higher on a reported basis than the previous
record prior year comparator (1% higher on a constant currency
LFL(1) basis) and 20% higher than the pre-pandemic comparator of
2019 on a constant currency LFL(1) basis.
H1 LFL (1) revenue
increase/(decrease)
on
2021 2019
----------- ----------
UK (3%) 14%
----------- ----------
South Africa 10% 22%
----------- ----------
South Africa (at
CC (2) ) 10% 32%
----------- ----------
Group 1% 17%
----------- ----------
G roup (at CC (2)
) 1% 20%
----------- ----------
In our UK business, LFL (1) revenue for the first half was 3%
lower than the previous year, albeit 14% higher than in 2019 . Our
performance in the trade channels remains resilient offset by
softer demand in the retail channels and destocking in some of the
larger retail customers.
Following its acquisition on 31 May 2022, Grant Westfield has
been integrated into the Group and continues to perform strongly in
line with the Board's expectations.
Our South African business has continued to outperform the
market, with revenue for the first half 10% higher than prior year
on a constant currency basis. Revenue was also 32% higher than in
2019 on a constant currency LFL(1) basis, with growth across all
divisions reflecting market share gains.
Financial Position
The balance sheet remains strong with net debt of approximately
GBP60m (pre-IFRS16) following the acquisition of Grant Westfield
and is in line with the Board's expectations (net cash of GBP8.6m
as at 31 March 2022). The Group has committed banking facilities of
GBP130m maturing October 2025.
Pension Scheme
Notwithstanding the recent volatility in financial markets, and
in particular the movement in gilt yields, the Group's UK defined
benefit pension scheme obligations continue to be well managed and
we expect the scheme to continue to be in an accounting surplus as
at 30 September 2022.
Outlook
Our performance in the first half of this financial year
continues to reflect the strength of our focussed operating model,
market leading brands, broad distribution channels, well-developed
supply chain infrastructure and stock availability. We expect to
report an underlying operating profit in the first half of the year
of no less than GBP21m (2021: GBP22.0m, 2020: GBP12.8m, 2019
GBP17.4m).
Notwithstanding the ongoing macroeconomic uncertainties, the
Board remains confident that the Group will continue to win share
and perform in line with the Board's expectations for the year to
31 March 2023.
(1.) LFL (like for like) adjusts 2019 revenue from a 27 to a 26
week period pro-rating and excludes Grant Westfield, which was
acquired on 31 May 2022
(2.) CC refers to constant currency basis
Enquiries
Norcros plc Tel: 01625 547700
Nick Kelsall, Chief Executive
Officer
James Eyre, 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 eight 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
-- Multipanel - Grant Westfield is a leading manufacturer of
high-end waterproof bathroom wall panels
-- 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 2,400 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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END
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(END) Dow Jones Newswires
October 13, 2022 02:00 ET (06:00 GMT)
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