Bathroom specialist hails tenth consecutive year of growth
Listed bathroom specialist Norcros has reported another year of growth despite what it described as an uncertain economic and political backdrop.
For the year to the end of March, underlying operating profit was up 25.5% at £34.4m (2018: £27.4m), while group operating profit was £25.1m (2018: £19.6m).
Underlying profit before tax came in at £32.6m, up 24% from £26.3m the year before on revenue of £331m, which rose from £300.1m.
Revenue in the UK was £228.1m for the year (2018: £200.6m) up 13.7% on prior year principally reflecting the full year contribution from Merlyn which has continued to perform strongly since acquisition, the company said.
The return to profitability of Johnson Tiles UK after the restructuring implemented in April 2018 and the strong performance at Triton also helped boost revenues.
In March, Norcros secured approval from The Competition Commission of South Africa for its latest acquisition, which completed on April 1.
The supplier of branded showers, taps, bathroom accessories, tiles and adhesives, which operates under several brands including Triton and Johnson Tiles, announced in January its proposed acquisition of South African based RAP Plumbing Supplies (Proprietary), trading as House of Plumbing.
House of Plumbing is a market leading supplier of specialist plumbing materials focused on the specification and commercial segments of the market supplying plumbing contractors, maintenance plumbers and the public.
The business operates from three branches in South Africa located in Johannesburg, which is also where the head office is based, Pretoria and Lephalale.
On Brexit, the company said: “The impact of Brexit on the group remains an important short-term consideration for our businesses with potential consequences ranging from increases in cost prices, additional tariffs, lower consumer confidence levels and supply chain disruption. We have identified specific risks relevant to our business and prepared mitigation plans which are well developed. However, at this stage, whilst we are prepared, the high level of uncertainty of both the financial and political implications of Brexit make the success of mitigation activities difficult to predict.”
Chairman Martin Towers said: “I am delighted to announce that Norcros has recorded another year of growth despite the uncertain economic and political backdrop in our two main markets.
“This reflects the resilience of the group’s business model and the success of our acquisition strategy. It also represents the group’s tenth consecutive year of revenue and underlying operating profit growth, which is a testament to the management team, the strategy and its highly successful execution.
“Whilst market conditions are likely to remain challenging, the board is confident that these attributes will continue to drive market outperformance leading to further progress in the current year consistent with our strategic objectives.”
