Norcros to trim debt after Aussie deal
NORCROS, the tile and bathroom products specialist, has raised more than £4m from the sale of its stake in an Australian wholesaler.
The AIM-listed company will use the cash from the sale of its 25.5% holding in RJ Beaumont and Co to cut its debt pile of £15.9m.
Wilmslow-based Norcros is selling the shares back to the company for 7.75m Australian dollars by means of a selective share reduction.
Beaumont is primarily involved in the sale of ceramic tiles and adhesives in Australia. In 2009 it made a dividend payment to Norcros of £36,000, down from £71,000 in 2008.
Norcros said the carrying value of the investment in its balance sheet as at March 31 2009 was £1.7m so a profit on disposal of £2.6 million would be reported in the financial statements for the year ended March 2011.
