Strong first half performance for bathroom and kitchen supplies group
Norcros, the Wilmslow-based bathroom and kitchen supplies group, reported increased interim revenues and profits.
The group posted sales of £200.9m in the six months to September 30, up from £135.3m in the same period a year ago. Pre-tax profits soared from £3.4m to £17.7m this year, and the board is declaring an interim dividend of 3.1p per share reflecting the strong first half performance and its confidence in the group’s prospects. No interim dividend was paid last year.
Norcros also reported a record underlying operating profit of £22m, an increase of 26.4% compared with 2019. It said its balance sheet remains very strong with £1m net cash, with significant liquidity and funding headroom.
It said the performance reflects increased activity in the UK and South African RMI markets and the strength of its customer proposition.
Norcros operates under seven brands in the UK: Triton, Merlyn, Vado, Croydex, Abode, Johnson Tiles, and Norcros Adhesives, and four brands in South Africa, of Tile Africa, Johnson Tiles South Africa, TAL, and House of Plumbing.
Chief executive, Nick Kelsall, said: “The strength of our leading customer proposition and our focused operating model has resulted in an excellent performance during the first half, with the group benefitting from increased activity in the UK and South African RMI markets and also winning market share.
“Notwithstanding the ongoing uncertainty created by supply chain challenges, increased energy costs, inflationary cost pressure and a normalisation of consumer spending patterns, the board remains confident our proven business model and customer proposition will lead to further progress, in line with its expectations, for the year to 31 March 2022.”
