Norcros Interims: 'Robust' Results Despite Challenging Market Conditions

Norcros, a market-leading supplier of high quality and innovative bathroom and kitchen products, today announces its results for the six months ended 30 September 2019, advising that it is 'winning share despite challenging market conditions.'

Financial Summary

 ¹ Definitions and reconciliations of alternative performance measures are provided in note 3
² Change % relates to the six months ended 30 September 2019 (pre - IFRS16 adjustment) versus 30 September 2018

³ See note 16 for more information on IFRS 16 impact

⁴ LFL (like for like) at constant currency and adjusts 2019 revenue for House of Plumbing (acquired 1 April 2019) and 27 to 26-week period pro-rating

Highlights

·     Revenue increased by 11.4% on a reported basis, 12.8% on a constant currency basis, and 0.9% on a like for like⁴ basis

·     Underlying operating profit increased by 12.5% to £17.1m on a pre-IFRS16 basis

·     Strong UK domestic organic revenue growth in trade and retail sectors

·     House of Plumbing integrated and performing to expectations

·     Good cash generation - reduction in net debt  

·     Interim dividend increased by 10.7% to 3.1p per share  

Martin Towers, Chairman, commented:

"I am pleased to announce a robust set of results for the six months ended 30 September 2019 reflecting the Group's resilience and continuing success in winning share despite the challenging market conditions. These results continue to demonstrate the benefits of the Group's leading market positions, portfolio of strong brands and financial strength. The Board remains confident these attributes will enable further progress in line with its expectations for the year to 31 March 2020."

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 & stone adhesives, grouts and related products

Based in South Africa, Norcros operates under four brands:

·   Tile Africa 
·   Johnson Tiles South Africa
·   TAL
·   House of Plumbing

Source : Insight DIY Team and Norcros

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