Chairman David McKeith bows out of Norcros on a high note
Wilmslow-based bathroom and kitchen product markets business Norcros hit record sales of £441.0m (2022: £396.3m), 11.3% higher than the prior year on a reported basis and 1.5% higher on a constant currency like for like basis.
Underlying operating profit was also at a record level of £47.3m (2022: £41.8m), 13.2% ahead of the prior year, reflecting the contribution from recent acquisition Grant Westfield and further market share gains.
Chief executive Thomas Willcocks said the strategy is to grow revenue to £600m by 2025 with half that outside of the UK. “This growth strategy has delivered strong organic and acquisition driven growth at above targeted returns,” he said.
Chairman David McKeith said: “Notwithstanding the macro challenges in recent years of Brexit, COVID-19, the war in Ukraine and the UK “mini budget” in September 2022, we have made strong strategic progress, and our focused growth strategy continues to be valid and relevant.
“Our performance during the period demonstrates our focus upon sustaining a pre-tax return on underlying capital employed of 15% over the economic cycle and this continues to be key in how we evaluate opportunities and deploy capital.
Earlier this year Norcros closed its loss making adhesives business in Stoke, which will contribute to positive results, he said.
Though it contributed revenue of £14.3m (2022: £14.3m) adhesives made a loss in the year of £2.7m, which is included in the underlying results for the current and prior year. An exceptional restructuring cost of £4.8m is reflected in the figures.
“We made the decision to close our UK Adhesives business during the year, and whilst this was a difficult decision, it will improve the Group’s financial performance going forward. Our business model, strategy and core capabilities including sustainable product design and innovation, well developed sourcing partnerships, and market leading customer service have again delivered excellent results.
“The business will continue to drive market share growth in our existing businesses while taking advantage of further acquisition opportunities in what remain fragmented markets.”
The results will be McKeith’s last as chairman as he intends to retire. The former senior partner of PwC in Manchester has also served as chairman of the Halle Orchestra and the President of Greater Manchester Chamber of Commerce.
He stepped up to be chairman during a period of boardroom disruption, including the death of chairman Gary Kennedy in February 2023, and the change of chief executive.
Steve Good will be appointed a Director from 1 July 2023 and will become Board Chair Designate from that date.
Thomas Willcocks was appointed chief executive from 1 April 2023 following Nick Kelsall’s retirement.
He joined Norcros in 2006 and was promoted to Managing Director of Norcros South Africa in 2009 and has overseen the sustained and profitable growth of our South African business.
McKeith said: “I have worked closely with both Nick and Thomas as we have developed and grown the Norcros business, and it has been a pleasure to be able to stand back and recognise the success achieved. I would like to thank Nick for his focused and determined leadership over this time and wish him and his family the very best in his retirement. Nick has handed over to an experienced team led by Thomas and James Eyre (CFO), which is testament to his development of the Norcros business and team throughout his tenure.”
Describing itself as a “market leading supplier of high quality and innovative bathroom and kitchen products” Norcros operates under seven brands: Triton, Merlyn, Multipanle, Vado, Croydex, Abode and Johnson Tiles. It also operates in South Africa.
