Norcros trading update shows 4.7% slide in LFL sales

NORCROS, which supplies showers, tiles and adhesives, has continued to see like-for-like sales slip.

In a trading update for the six months to the end of September, the firm, which owns Stoke’s Johnson Tiles and Nuneaton-based Triton, said like-for-like revenue was down by 4.7% across the group and 5% in the UK.

Its Triton Showers business saw an 11.9% lift in sales in the second quarter but revenue at the Johnson Tiles operation was 11.4% during the period due to restocking by a number of customers.

Sales in the South African arm continued to be strong.

However, the £16m acquisition of bathroom tap and mixer shower specialist Vado in March has helped sales which were up 9% to £116m. Underlying pre-tax profit is flat at £6m.

In a statement the stock market-listed firm said: "The economic outlook in both South Africa and the UK is more positive in terms of construction activity and housing transactions, albeit this has yet to translate into a significant improvement in consumer confidence.

"Nevertheless, our South African businesses continue to deliver double digit constant currency growth, and we have experienced a stronger second quarter from both Triton and Vado.

“The destocking seen in Johnson Tiles UK in the first half, together with the second half weighting of cost reduction benefits will mean that group underlying operating profit will be more heavily weighted to the second half than normal. The board remains confident of the full year outcome."

Source : James Graham - TheBusinessDesk.com
www.thebusinessdesk.com/westmidlands/news/524235-norcros-hopeful-of-pick-up-in-housebuilding-activity-as-sales-dip.html