Norcros Posts Record Revenue And Operating Profit

• Record revenue and underlying operating profit and a strong financial position 

Norcros, a market leading supplier of high quality and innovative bathroom and kitchen products, today announces its results for the year ended 31 March 2023. 

Financial Summary 

1 LFL - Like for like after adjusting for Grant Westfield, acquired 31 May 2022

2 Definitions and reconciliations of alternative performance measures are provided in note 5

Highlights

• Resilience of the Group's business model in challenging market conditions
  
  
• Strong execution of strategy
  
  
• Record full year revenue of £441.0m (2022: £396.3m), 11.3% higher than prior year on a reported basis and 1.5% higher on a constant currency like for like basis after adjusting for Grant Westfield
  
  
• Record underlying operating profit² of £47.3m, 13.2% higher than prior year (2022: £41.8m)
  
  
• Underlying net debt² of £49.9m (2022: net cash of £8.6m)
  
  
• Underlying ROCE² of 18.5% (2022: 23.9%)
  
  
• Diluted underlying EPS² of 37.4p (2022: 38.2p)
  
  
• Progressive dividend at 10.2p for the year (2022: 10.0p)
  
  
• The acquisition of Grant Westfield completed in May 2022, successfully integrated and performing strongly

Current trading

• Group revenue in the two months to the end of May 2023 was 1.3% ahead of the strong prior year comparator on a reported basis and 3.6% below on a constant currency like for like³ basis (UK +1.3%, SA -12.7%) with South Africa impacted by electricity supply interruptions, which are being actively managed. Market conditions are likely to remain uncertain. However, the Board is confident that our market leading brands and strong execution of strategy will continue to deliver outperformance, leading to further progress and market share gains in line with its expectations in the year ahead.

3 Adjusted for Grant Westfield and Norcros Adhesives 

David McKeith, Chair, commented:

"I am pleased to report another record performance for the Group with results at the top end of market expectations. Norcros has continued to demonstrate resilience and growth in market share despite challenging conditions. The Group's business model and strategy have proven to be highly effective through a sustained period of macroeconomic uncertainty."

Source : Norcros PLC

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.