Christmas not happy for Norcros
SHOWERS-to-tile maker Norcros has said that sales for an 18-week period to February 5 edged up by 1% on a constant currency basis but were 3.1% lower on a reported basis.
The Wilmslow-based firm said that it had suffered from a “challenging” December both in the UK and South Africa, with longer-than-expected shutdowns within its major markets as people took longer Christmas holidays.
However, it added that trading improved in January and that it remained confident of its leading position in its major markets.
Year-to-date group revenues are still 5.6% higher on a constant currency basis.
South Africa proved to be its strongest market, with sales up by almost 11% in the 18-weeks when exchange rate movements are stripped out.
UK sales were 3% lower than last year, due partly to a 7.7% decline in sales of Triton Showers. The firm said that lower sales both to retail and trade customers was also exacerbated by many of its own customers destocking. Sales improved in January when a new model launched.
Johnson Tiles saw a 1% increase in sales, while its tile adhesives business grew sales by 5% as it is being used by more housebuilders and on more national contracts.
As a result of the slightly weaker trading, the board said that its trading profit for the year “is anticipated to be marginally below previous expectations, although lower cash finance costs and a lower effective tax rate should offset any shortfall”.
“The board remains confident that through the ongoing self-help programmes and growth initiatives Norcros will continue to gain market share and make solid progress.”
