Norcros to trump market profit expectations

NORCROS, the company behind consumer products including Triton Showers and Johnson Tiles, said its annual figures would trump market expectations.

The WIlmslow-based group, which was hosting an analyst visit at sites in Nuneaton and Stoke on Trent today, said in a pre-close period trading update for the year to the end of March 31, it had continued its strong run of form since its last update in February.

It said:”All our UK businesses have continued to make good progress and have gained market share despite the ongoing uncertainty over the impact of public sector cuts on consumer and business confidence.”

In South Africa, the picture was positive too – with the turnaround in operating performance achieved at the half-year continuing despite low levels of building activity.

Norcros said it expects revenues for the 53 week period to March 31 will come in around £195m, up from £169.6m last year, a hike of around 7% on a constant currency and LFL number of weeks basis.

Group trading profit is expected to be in the region of £11.5m, up fromf £7.3m, while benchmark profit before taxation – before any exceptional items is included –  will be around £9.7m, up from £3.4m.

“The expected results will be ahead of market expectations of a £11.2m trading profit and Benchmark profit before taxation of £9.4m,” the company said.

The rosy position means too that Norcros has been able to repay some of its borrowings, with closing net debt before prepaid finance costs, of £13m, compared with £18.9m last year.

AIM-listed Norcros said it had continued to invest for future growth with expansion at its tiles and adhesives operations in this country.

Looking ahead Norcros said it was focused on growth in all key markets.

Sounding a note of caution it added: “The economic environment remains uncertain and market conditions are still challenging. Nevertheless the board is encouraged by the strong forward momentum in our businesses reflecting the investment in new product development, operational improvements, marketing initiatives and the success of our focussed sales strategy.

“We believe Norcros is strategically and financially well positioned to make further progress.”