Norcros upbeat as first half profits rise

NORCROS, the shower and tile manufacturer, raised its dividend after a strong first half performance.

In the 26 weeks to the end of September the Wilmslow-based group – which owns the Triton Showers and Johnson Tiles brands – saw an 8.6% uplift in sales at constant currency to £102.4m.

Despite “significant” commodity and energy cost rises  – 37% up in its UK tile business alone – Norcros grew trading profits 2.2% to £6.3m.

The group said it expects trading conditions in this country – and in South Africa where it operates a number of businesses related to tile retail and manufacture – to remain challenging, but was confident of further progress.

Chief executive Nick Kelsall told TheBusinessDesk.com the increase in dividend from 0.12p per share to 0.14p was a sign of the group’s confidence in the future.

“I think we are pretty pleased, we’re never complacent and always looking at ways we can improve. These are a solid set of results with revenue growth of 8.6% against a very challenging backdrop, really reflecting and underpinning the strength of our brands.”

He said a three-bank £51m, four year refinancing deal completed on “pretty good terms” in September gives Norcros the ability to look at acquisitions if they arise.

“The key focus is to improve what we have got – there’s always areas for improvement. In terms of acquisitions though, they never come when you want them to, and if there is something compelling that comes along ans is attractive financially and fits with what we have got, then we will give it a good hard look.

“We have plenty of initiatives in the business to grow though,” he added.