Cautious Norcros sees strong sales growth
NORTH West tiles and shower maker Norcros has reported strong first quarter sales growth but is still cautious about its prospects for the rest of the year.
The Wilmslow-based firm has seen sales increase across the business, which includes Triton showers and Johnson Tiles, but bleak predictions on consumer spending and the decline in public sector spending have curbed growth forecasts.
In a trading statement ahead of an annual meeting today Norcros said group revenues rose by 11.8% in the UK and 16% across the group in the the 13 weeks to June 27.
On a constant currency basis, which shows performance unaffected by currency fluctuations, overall revenue increased by 8.7%. There was a 3.7% rise from the South African operations and 13.6% at its interests elsewhere in the world.
In the UK Norcros said Triton outperformed the market with sales growth of 20.9% which it put down to new products and “excellent customer service”. Export revenues – 15% of all income – rose by 11.8%.
At Johnson Tiles flat trade revenues dampened retail gains leaving UK growth at 1%. Export sales rose by 25%, pushing the division’s total sales up by 4.4%.
The South African tile business, which has been hampered by a depressed economy, saw some signs of growth. Sales at the retail operation Tile Africa grew by 8.5% on a like-for-like basis while growth was flat at the Johnson Tiles manufacturing operation due to the depressed construction sector.
“The group has made an encouraging start to the current financial year but the board remains appropriately cautious about prospects for the remainder of the year,” said the company. “The UK outlook for consumer spending remains uncertain and the decline in public sector investment will impact activity levels whilst the economy in South Africa is forecast to show only a slow recovery.”
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