Norcros to axe 90 jobs
CHESHIRE-based bathroom specialist Norcros is to axe 90 jobs from its UK tile business as part of a restructure.
In a trading update the listed Wilmslow company said it has started a restructure of Johnson Tiles, which will mean the loss of around 90 jobs.
The restructuring, which Norcros said would increase flexibility and reduce inventory, will cost the group around £2.3m.
Norcros made the announcement ahead of announcing its full year results for the year to the end of March 2017.
Group revenue for the year is expected to be in the region of £271m, a 15% increase on 2016, with its acquisition of Abode a year ago helping to boost its UK performance.
Vado and Croydex, acquired in March 2013 and June 2015 respectively, also continued to make good progress, it said. Group underlying operating profit will be in line with expectations.
Nick Kelsall, group chief executive, said: “The group expects to deliver its eighth consecutive year of revenue and underlying operating profit growth during a period of variable trading conditions. This demonstrates the success and resilience of the group’s business portfolio and operating model.
The Group continues to focus on growth, both organically and via acquisitions. It is particularly pleasing to note the strong performances from our South African operations and the acquired businesses of Vado, Croydex and Abode. We continue to actively pursue complementary opportunities in line with our stated strategy.”
Closing year end net debt is expected to be around £24m (2016: £32.5m), due to continued good cash generation in the second half of the year.
In the UK, Norcros operates under six brands: Triton Showers, Vado, Croydex, Abode, Johnson Tiles and Norcros Adhesives.
