Strong tile sales boost Norcros

Norcros, the company behind Triton Showers and Johnson Tiles, has reported a near 11% rise in sales in the 18 weeks to February 3.

The Wilmslow company said its UK performance, with strong tile sales in B&Q, was one highlight of the period as revenue for the 18 week period rose 15.1% on a constant currency basis compared to the same period last year and 10.8% higher in Sterling reflecting a weaker South African Rand.

Although market conditions "continue to remain subdued" Norcros said UK revenue for the 18 week period was 9.5% higher compared to the same period last year, and is 6.5% higher year to date compared to the same period last year.

The star performer was Johnson Tiles, which saw revenues surge 15.9% during the trading period driven by DIY giant B&Q's major tile range review and new in-store tile shop.

The UK trade sector and export markets remain challenging, and revenue in both segments continues to reflect weak construction activity levels and fragile consumer confidence. Despite these factors, year to date revenue is 16.6% higher than the same period last year.

The company said Triton Showers had "stemmed" a year-on-year sales decline and had seen revenue for the 18 week period rise 1.5%.

Year to date revenue is 4.6% down on the same period last year.

In its South African business, Norcros reported continued strong growth with revenue on a constant currency basis up 25.6% higher with further success in the South African DIY sector and export markets for both TAL, its market-leading adhesives business, and Johnson Tiles South Africa.

The company said it is progressing with plans to close the defined benefits part of its UK pension scheme.

Looking forward, the group said: "Whilst the South African economic indicators are showing some signs of improvement, and despite the recent performance of Triton, general conditions in our markets remain challenging.

"Nevertheless, the strength of our brands, leading market positions, customer relationships, strong balance sheet, and the continued momentum in our Johnson Tiles South Africa business gives the board confidence that the group should continue to make progress in line with market expectations for the current year."

Source : Chris Barry – TheBusinessDesk.com
www.thebusinessdesk.com/northwest/news/431615-norcros-makes-solid-progress-as-tile-sales-surge.html