Strong recovery for Norcros as it reinstates divi payment
North West tiles and shower maker Norcros has reinstated its dividend after a strong recovery from the pandemic.
The business, which supplies branded showers, taps, bathroom accessories, tiles and adhesives from its head office in Wilmslow, reported full year revenue of £324.2m for the year to the end of March.
That’s down 5.2% from £342m in the previous year on a reported basis.
Underlying operating profit was £33.8m, 4.6% ahead of the prior year reflecting the strong recovery following the significant impact of COVID-19 in the first quarter.
In the UK, Triton and Merlyn performed very strongly in terms of revenue, operating profit and cash generation and gained further market share, it said.
In South Africa, Tile Africa, a leading retailer of wall and floor tiles, sanitaryware and bathroom fittings, also performed strongly with annual revenue growth of 11.8%.
Norcros said it was reinstating dividend payment at 8.2p for the year, up from 3.1p in 2020.
Looking ahead, the group said strong trading momentum has continued into April and May 2021 with Group revenue ahead of the comparable period in 2019 by approximately 23%.
David McKeith, acting chair, said: “Norcros has recovered very strongly from a period of unprecedented global disruption and uncertainty caused by the COVID-19 pandemic.
“The resilience of the Group’s business model and strategy is proving to be highly effective; this was particularly evident in the last financial year as we outperformed the market in the most unpredictable trading environment we have ever experienced.
“The Board is confident that this outperformance can be sustained.”