TIDMNXR
RNS Number : 0267W
Norcros PLC
13 April 2023
13 April 2023
Trading update
Norcros plc ("Norcros" or the "Group"), a market leading
supplier of high quality and innovative bathroom and kitchen
products, will announce its Preliminary Results for the year ended
31 March 2023(1) on 15 June 2023. In advance of this, the Group is
providing the following trading update.
Full year trading performance - Underlying operating profit up
10% and in line with market expectations (2)
The Group has continued to demonstrate resilience in its
business model, trading well against the challenging macroeconomic
backdrop and the Board expects underlying operating profit for the
year to 31 March 2023(1) to be at a record level and in line with
market expectations(2) .
Group revenue for the year ended 31 March 2023(1) is expected to
be approximately GBP440 million (2022: GBP396.3 million), 11.3%
above prior year on a reported basis and 1.5% above on a constant
currency "CC(3) " and like for like(4) "LFL" basis.
Revenue increase on prior year
Reported LFL(4)
FY H1 H2 FY
---------- ------- ------- -------
UK 15.2% (3.4%) 3.3% (0.2%)
---------- ------- ------- -------
South Africa 3.9% 10.0% (2.2%) 3.9%
---------- ------- ------- -------
South Africa at
CC(3) 4.6% 9.7% (0.6%) 4.6%
---------- ------- ------- -------
Group 11.3% 1.2% 1.3% 1.3%
---------- ------- ------- -------
Group at CC(3) 11.5% 1.1% 1.9% 1.5%
---------- ------- ------- -------
Our UK business has continued to perform well, with revenue at
15.2% above prior year on a reported basis and broadly in line with
prior year on a LFL(4) basis. Our performance demonstrated the
breadth of our distribution channels, strong stock management and
excellent levels of service resulting in market share gains.
Our South African business continued to perform robustly,
despite market conditions being more challenging in the second half
of the year, gaining share as a result of our market leading
positions and stock availability. Reported revenue for the year was
3.9% higher than prior year and 4.6% higher than prior year on a
constant currency basis.
Financial position and extension of banking facilities
The Group remains in a strong financial position with net debt
(on a pre-IFRS 16 basis) at 31 March 2023(1) expected to be circa
GBP50 million (2022: net cash of GBP8.6 million). The year on year
movement principally reflects the acquisition of Grant
Westfield.
The Group has extended its GBP130 million multicurrency
revolving credit facility ("RCF") for a further year. The facility
has a three year and seven month term to October 2026, with a
further year extension available. It also includes the option for
an uncommitted accordion facility of GBP70 million.
Norcros Adhesives - closure
It is with regret we have commenced the closure of Norcros
Adhesives, a small but loss making division with the loss of 70
jobs. Norcros Adhesives represented approximately 3% of Group
revenue in the year. The revenues and approximately GBP3 million of
underlying operating losses are included in the underlying
financial results for the year. In addition, costs relating to the
closure of circa GBP5 million (of which circa GBP2 million
represents the gross cash cost) will be separately reported as an
exceptional item in the results to 31 March 2023(1) . This
represents a cash payback period of less than one year. The net
impact on cash is not expected to be significant.
Notice of results
The Group will announce its full year results for the year ended
31 March 2023 (1) on Thursday 15 June 2023.
Thomas Willcocks, Chief Executive Officer, said:
" Norcros has delivered record results, again demonstrating
resilience and market share growth, notwithstanding the significant
macroeconomic challenges. Whilst market conditions are likely to
remain uncertain in the short term, the Board believes that the
Group's proven business model, leading customer service
proposition, leading brands and highly experienced management teams
will continue to deliver market share growth in the year ahead.
Whilst I have been with the Group since 2006, and a member of
the Executive team at Norcros since August 2021, I was delighted to
join the Board from 1 April 2023 as CEO. I would like to take this
opportunity, on behalf of myself and the Board, to thank Nick
Kelsall for his outstanding commitment to the Group over the last
thirty years. He has left the Group in an excellent position to
continue growing market share in what remain fragmented and
attractive markets. We wish him a long and healthy retirement."
(1.) The accounting reference 'year to 31 March 2023' relates to
the 52-week accounting period commencing on 4 April 2022 and ending
2 April 2023
(2.) Norcros compiled market consensus for the year to 31 March
2023 underlying operating profit is GBP45.9 million
(3.) CC refers to constant currency basis
(4.) LFL excludes Grant Westfield, which was acquired on 31 May
2022
Enquiries
Norcros plc Tel: 01625 547700
Thomas Willcocks, Chief Executive
Officer
James Eyre, Chief Financial Officer
Hudson Sandler Tel: 0207 796 4133
Nick Lyon
Sophie Miles
Notes to Editors
Norcros is a market leading supplier of high quality and
innovative bathroom and kitchen products with operations primarily
in the UK and South Africa.
-- 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
-- Multipanel - Grant Westfield is a leading manufacturer of
high-end waterproof bathroom wall panels
-- 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
-- Based in South Africa, Norcros operates under four brands:
-- Tile Africa - Chain of retail stores focused on ceramic and
porcelain tiles, and associated products such as sanitaryware,
showers and adhesives
-- Johnson Tiles South Africa - Manufacturer of ceramic and porcelain tiles
-- TAL - The leading manufacturer of ceramic and building adhesives
-- House of Plumbing - Market leading supplier of specialist plumbing materials
-- Norcros is headquartered in Wilmslow, Cheshire and employs
around 2,300 people. The Company is listed on the London Stock
Exchange. For further information please visit the Company website:
http://www.norcros.com
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END
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