Norcros PLC Trading Update (6598D)
October 11 2018 - 2:00AM
UK Regulatory
TIDMNXR
RNS Number : 6598D
Norcros PLC
11 October 2018
11 October 2018
("Norcros", the "Group" or the "Company")
Trading Update
Norcros, a market leading supplier of high quality and
innovative bathroom and kitchen products will announce its interim
results for the half year ended 30 September 2018 on 15 November
2018. In advance of this, the Group is providing the following
trading update.
Trading
Group underlying operating profit(1) for the first half is
expected to be in line with the Board's expectations reflecting a
robust performance and continuing to demonstrate the financial
resilience of the Group.
Group revenue for the first half is expected to be approximately
GBP162.5m (2017: GBP145.0m), 12.1% higher than the prior year on a
reported basis, 13.2% higher on a constant currency basis, and
level on a like for like(2) constant currency basis. This
performance reflected strong organic revenue growth of 4.4% in the
Group, excluding the significantly lower revenue from Johnson Tiles
which was anticipated and largely due to the Kingfisher unified
programme as previously reported.
Half year to 30 September 2018
Revenue
Reported Constant Constant
currency currency
LFL(2)
-------------- --------- ---------- ----------
UK +16.4% +16.4% - 4.2%
South Africa +3.9% +7.1% +7.1%
Group +12.1% +13.2% - 0.3%
-------------- --------- ---------- ----------
(1) Underlying operating profit excludes IAS 19R administrative
expenses, acquisition related costs and exceptional operating
items
(2) LFL / like for like excludes Merlyn revenues (acquired 23
November 2017)
UK revenue for the first half was 16.4% higher than the prior
year, reflecting in part the contribution from Merlyn, which
continued to perform strongly in the period. On a like for like
basis(2) , and excluding Johnson Tiles, UK revenue was 2.5% higher,
reflecting a very resilient performance as trading conditions,
particularly in the UK retail sector and a number of export
markets, were challenging. The restructuring of the Johnson Tiles
business, as announced in April, is proceeding to plan with the
business back into profit in the first half.
Revenue grew in our South African business by 7.1% compared to
the prior year, on a constant currency basis and by 3.9% on a
reported basis reflecting the weaker South African Rand.
Financial position
Closing half year net debt is expected to be around GBP54m
(2017: GBP20.8m), in line with expectations following the
acquisition of Merlyn in the second half of last year.
Outlook
The robust performance in the first half against the backdrop of
a challenging trading environment continues to demonstrate the
strength of our market positions, our leading brands and the
financial resilience of our diversified business model. The Board
remains confident that these attributes will continue to drive
market outperformance and will enable the Group to make further
progress in line with its expectations for the year to 31 March
2019.
ENQUIRIES:
Norcros plc Tel: 01625 547 700
Nick Kelsall, Group Chief Executive
Shaun Smith, Group Finance Director
Hudson Sandler Tel: 0207 796 4133
Nick Lyon
Nelly Akpaka
Anneka Jirh
Notes to Editors
-- Norcros is a 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 - 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 2,100 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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