Bathroom firm continues to trade well despite tough conditions
Bathroom firm Norcros said that trading continues to be in line with expectations despite tough market conditions.
In a trading update the Cheshire firm said underlying operating profit for the first half is expected to be in line with the board’s expectations.
The firm said resilient performance reflects the group’s continuing success in winning share despite the challenging market conditions.
Group revenue for the 27 week first half is expected to be approximately £181.2m , 11.4% higher than the prior year 26 week period on a reported basis, 12.8% higher on a constant currency basis, and 0.9% higher on a like for like constant currency basis.
UK revenue for the first half was 5.2% higher than the prior year on a reported basis and 1.3% higher on a like for like2 basis.
This reflected market share gains as domestic revenue grew by 3.4% on a like for like basis for the period combined with an improved export performance in the second quarter.
Revenue in the South African business increased by 24.5% on a reported basis and 29.4% on a constant currency basis compared to the prior year.
Like for like revenue was in line with the previous year reflecting the difficult economic environment and lower levels of activity. We continue to win share and have successfully integrated the House of Plumbing business, which has performed in line with expectations.
A statement said: “The robust performance in the first half against the backdrop of challenging conditions in our two main markets demonstrates the resilience of the group’s strategy and operating model.
“The fragmented nature of our markets continues to provide growth opportunities for the Group as we maintain our focus on winning market share. The board remains confident that the group’s leading market positions, portfolio of strong brands and financial strength will enable further progress in line with its expectations for the year to 31 March 2020.”
