Norcros reports record interim revenues and raises dividend in ‘resilient’ first half
Wilmslow-based bathroom and kitchen supplies group, Norcros, announced record half year revenues today, but pre-tax profits failed to keep pace.
Revenues for the six months to September 30, 2022 were £219.9m, up from £200.9m a year ago. However, pre-tax profits fell from last year’s level of £17.7m to £14m.
The board has recommended an increase in the interim dividend, from 3.1p per share a year ago, to 3.4p, which it said reflects its confidence in the group’s prospects.
Today’s results reflected a “resilient” performance, the company said.
It said it benefited from its geographical spread, market share gains and trade channel resilience, offset by softer retail demand and customer destocking.
The Grant Westfield acquisition in May, for a potential £92m, has completed and been seamlessly integrated during the reporting period.
Norcros said it is in a strong financial position, with low leverage and £130m of committed banking facilities maturing in October 2025, representing significant liquidity and funding headroom.
The group, which employs 2,400 staff, stocks eight main UK brands, which are Triton, Merlyn, Multipanel, Vado, Croydex, Abode, Johnson Tiles and Norcros Adhesives, while its South African business numbers the four key brands of Tile Africa, Johnson Tiles South Africa, TAL and House of Plumbing.
The UK business reported interim revenues of £142.8m, which was a 13.5% improvement on the pre-pandemic like for like figures for 2019.
The South African business achieved first half revenues of £77.1m, representing growth of 9.7% on a constant currency basis compared with the strong prior year comparator.
Chief executive, Nick Kelsall, said: “We have again delivered a resilient first half performance against a challenging macroeconomic backdrop.
“Whilst activity levels normalised following the exceptional post-pandemic demand in 2021, the board remains confident that the group’s successful strategy, proven business model, leading brands, excellent service proposition and its commitment to new product introductions will continue to offer strong differentiation and deliver further progress in line with the board’s expectations for the year to 31 March 2023.”
He added: “Our resilient performance in the first half continues to reflect the benefits of the group’s strategy, its focused business model, geographical spread, broad distribution channels, market leading brands, well developed supply chain infrastructure and financial strength.”
