Fourth consecutive year of revenue growth for Norcros

Showers and tiles group Norcros has reported its fourth consecutive year of revenue growth and the return to profit of its South African operations.

Revenues for the year to March 31 were up 5.2 per cent from £200.3m to £210.7m - the fourth consecutive year of revenue growth - with pre-tax profits up 6.4 per cent from £9.4m to £10m.

Norcros will pay a total dividend of 0.46p a share, up 9.5 per cent from 0.42p last year.

The Wilmslow-based firm, which has operations in the UK, South Africa and Australia, specialises in supplying showers, taps, bathroom accessories, tiles and adhesives, with brands including Triton and Johnson Tiles.

UK revenues increased by 5.1 per cent to £122.8m, including strong revenue growth for Johnson Tiles, which was offset by lower revenue at the more profitable Triton Showers.

Continued energy cost increases resulted in a reduced margin of 9.7 per cent, down from 10.7 per cent.

In South Africa revenues were up 4.8 per cent at £77.6m, though the firm was hit by weak exchange rates and increasing energy costs.

Nonetheless, an overall underlying operating profit for the year of £1m marked a return to profit after a £500,000 loss last year.

Australian operations saw revenue increase 8.8 per cent to £10.3m, with profit maintained at £100,000.

Chairman Martin Towers said: “The group has achieved its fourth consecutive year of growth in both revenue and underlying operating profit despite tough markets and significant energy cost increases, with South Africa returned to profitability this year.”

Norcros, which has 1,750 staff, also announced two changes to its board.

John Brown, senior independent director and chairman of the audit committee, will retire after six years on July 24 013, to be replaced by David McKeith.

A former senior partner at PricewaterhouseCoopers, Mr McKeith is currently a non-executive director and audit committee chairman of Sportech, chairman of the Halle Orchestra and of Greater Manchester Chamber of Commerce.

Executive director and company secretary David Hamilton will also retire in July, to be replaced as company secretary by Richard Collins, a solicitor who was previously company secretary at Vertex Financial Services.

Norcros shares were down 0.88p at 15.5p on the news.

Source : Manchester Evening News
www.manchestereveningnews.co.uk/business/business-news/norcros-continues-revenues-growth-4308723