Norcros increases share of tiles market

SALES at Norcros increased by 10% in the 13 weeks to July 3.

The Wilmslow-based maker of showers and tiles said the increase had been achieved despite difficult market conditions in its two core markets of the UK and South Africa.

Sales were up by 19.5% at Johnson Tiles, and 22.5% in the UK as the company continued to pick up market share following the collapse of Pilkington’s last year.
Showers maker Triton saw its sales drop by 1.8% in the UK, but increased overseas.

In South Africa, revenues were up by 11.2% as its Tile Africa retail operation grew sales by 3.4% and its adhesives arm grew sales by 14.6%. However, its tile manufacturing business saw sales drop by 2.4%, which it blamed on customers de-stocking.

Norcros also said that its previously-announced deal to offload a lease on a former office at Braintree in Essex would cost it £7.8m, but would mean annual savings of £3.3m.

“Conditions in our principal markets remain challenging and the timing of any upturn remains uncertain,” the company said.

It said that it expected lower consumer confidence to impact on UK retail sales, while in South Africa a 19% drop in building completions would also impact on tile sales.

“Against this background, management continues to focus on its ‘self-help initiatives’ of driving increased revenues and offsetting input cost increases, as well as delivering the benefits of the operational improvement programmes in South Africa.

“As a result we are confident of making further progress in this financial year.”