Bathroom specialist hails ninth consecutive year of growth as revenue flows over £300m mark

Listed bathroom specialist Norcros has reported its ninth consecutive year of growth with revenues hitting £300.1m, boosted by a £60m acquisition it made last year.

The supplier of branded showers, taps, bathroom accessories, tiles and adhesives, which operates under several brands including Triton and Johnson Tiles, acquired shower enclosure manufacturer Merlyn Industries in November, which Norcros said has traded strongly since the takeover.

For the year to the end of March, Wilmlsow-based Norcros reported underlying operating profit of £27.4m, 15.1% higher than the prior year, mainly reflecting the continued improvement in the performance of its South African business, a first-time contribution from Merlyn, and the improvement in performance at Triton partly offset by a lower contribution from Stoke-on-Trent business Johnson Tiles.

Underlying profit before tax rose 14.8% to £26.3m from £22.9m the year before while the group’s full year dividend increased by 8.3% to 7.8p.

The group raised £31.4m of new equity through an open offer and placing in the period and increased its banking facilities to £120m to fund the Merlyn acquisition.

Chairman Martin Towers said: “The group has delivered another strong performance despite challenging market conditions, reflecting the successful acquisition strategy and the sustained focus on driving organic growth through market share gain. The resilience of the group’s business portfolio including the recent acquisitions, together with our well developed acquisition pipeline, gives me confidence that we can continue to make strong progress in the current year towards our new medium-term strategic objectives.”

Last summer, Norcros, which employs around 2,100 people, announced the loss of 90 jobs as part of a major restructure.