UK DIY News
Norcros provides trading update ahead of interim results
Norcros, supplier of innovative branded showers, taps, bathroom accessories, tiles and adhesives will announce its interim results for the half year ended 30 September 2017 on 16 November 2017.
In advance of this, the Group has provided the following trading update.
Trading Update
Group revenue and underlying operating profit in the first half is expected to be in line with the Board's expectations.
Group revenue for the first half is expected to be approximately £144.9m (2016: £128.8m), 12.5% higher than the prior year and 7.1% higher on a constant currency basis. The growth reflects a robust performance in our UK business and continued growth in their South African business:
Half year to 30 September 2017 | ||
| Reported | Constant currency |
|
|
|
UK | 8.4% | 8.4% |
|
|
|
South Africa | 21.0% | 4.8% |
|
|
|
Group
| 12.5%
| 7.1%
|
UK revenue for the first half was 8.4% higher than the prior year, reflecting growth in all channels, and benefitting in particular from strong positions in the new housebuild sector and in selective export markets.
Their South African business again delivered revenue growth in the first half of the year, 4.8% higher than the prior year on a constant currency basis continuing the sustained progress of recent years. Revenue was 21.0% higher on a reported basis reflecting a stronger South African Rand.
Financial position
The Group continues to focus on working capital and cash management and as a result of this, closing net debt is expected to have reduced to around £21m (2016: £27.5m).
Outlook
Against the backdrop of challenging market conditions, their performance demonstrates the strength of their market positions and the resilience of their diversified business portfolio delivering revenue growth in all UK sectors, strong growth in exports and sustained progress in South Africa. The Board remains confident that the Group will continue to make progress in line with its expectations for the year to 31 March 2018.
Source: Insight DIY Team & Norcros press release.
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