Shower and tiles firm Norcros to save £200,000 a year following refinancing deal

BATHROOM accessories and tile manufacturer Norcros has agreed a £70m refinancing package with three banks running up to 2019.
 
The group, which owns Nuneaton-based shower firm Triton and Stoke’s Johnson Tiles, said the agreement for the unsecured revolving credit facility includes a £30m ‘accordion facility’.

Norcros said the deal with incumbent lenders Barclays and Lloyds and newcomer HSBC – which has replaced Handelsbanken – would cut its net interest costs by approximately £200,000 a year, based on current levels of net debt and leverage.
 
Ahead of its annual meeting, Norcros, gave an update on trading for the 13 weeks to June 29.
 
It said group revenue from continuing operations was 0.9% higher on a constant currency basis compared to the same period last year.
 
Norcros said market conditions remain “mixed” for its UK businesses.  While revenue from the UK market was 1.4% higher than the same period last year, with continued growth in the trade sector of 4.2%, the retail sector was 3.7% lower. Export revenue was 13.2% lower, reflecting the timing of commercial projects in Vado which outweighed good export growth in Triton.
 
Revenue from the South African businesses grew by 6.2% on a constant currency basis but a weaker Rand saw Sterling reported revenue 13.1% lower than the same period last year.
 
Tile Africa experienced particularly strong constant currency growth at 12.1% and Johnson Tiles South Africa continued to make good progress towards profitability.
 
Assessing the outlook, Norcros said it expects to meet City expectations for the year, stating: “Given the continuing improvement in the financial performance of our UK and South African tile businesses and the expected recovery in Vado export revenues as commercial projects complete, the board remains confident that the group should continue to make progress in line with market expectations for the current year.”

Click here to sign up to receive our new South West business news...
Close