TIDMNXR
RNS Number : 0124P
Norcros PLC
14 October 2021
14 October 2021
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 3 October 2021 on 11 November 2021. In advance of this, the
Group is providing the following trading update.
Trading
The Group's outperformance of the market experienced in the
second half of the prior year has continued in the first half of
this year, reflecting both increased activity in the UK and SA RMI
markets and the strength of our customer proposition.
Group revenue for the 26 week period is expected to be
approximately GBP200m (2020: GBP135.3m; 2019: GBP181.2m), 49%
higher on a reported basis than the COVID-19 impacted prior year
(2020) and 18% higher than 2019 on a constant currency like for
like basis.
H1 LFL(2) revenue
increase on
2020 2019
--------------------
UK 40% 18%
--------- ---------
South Africa 69% 11%
--------- ---------
South Africa (at
CC(1) ) 53% 20%
--------- ---------
Group 49% 15%
--------- ---------
G roup (at CC(1)
) 44% 18%
--------- ---------
Our UK business has continued to perform strongly, with revenue
for the 26 week period 18% higher than in 2019 on a like for like
basis reflecting increased demand in the RMI sector and market
share gains, with Triton and Merlyn continuing to perform extremely
well.
Our South African business has also continued to outperform,
with revenue for the 26 week period 20% higher than in 2019 on a
constant currency like for like basis, with Tile Africa continuing
to benefit from higher demand and market share gains in the retail
renovation market.
Financial Position
The balance sheet remains very strong with net cash of
approximately GBP1.0m (pre-IFRS16) compared to net cash of GBP10.5m
as at 31 March 2021. During the period the Group has replenished
inventory levels and paid the prior year declared dividend.
Outlook and FY22 Upgrade
Our market outperformance in the first half of this financial
year reflects the strength of our focussed operating model, our
market leading brands, broad distribution channels, well-developed
supply chain infrastructure and stock availability. The strength of
our leading customer proposition has resulted in an excellent
performance, and we expect to report an underlying operating profit
in the first half of the year of no less than GBP21m (2020:
GBP12.8m, 2019 GBP17.4m).
As previously referenced, supply chain challenges, increased
energy costs, inflationary cost pressure and a normalisation of
consumer spending patterns mean that uncertain market conditions
are likely to prevail during the remainder of the financial year.
Notwithstanding these factors, and based on the excellent first
half performance and the Group's strong revenue momentum, we expect
underlying operating profit for the year to 31 March 2022 to be
significantly ahead of the board's previous expectations.
(1.) CC refers to constant currency basis
(2.) LFL (like for like) adjusts 2019 revenue from a 27 to a 26
week period pro-rating
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 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 - The leading manufacturer and supplier of ceramic tiles in the UK
-- Norcros Adhesives - Manufacturer of tile and stone adhesives, grouts and related products
-- 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 2,000 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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