Bathrooms firm Norcros set to report hike in profits
NORCROS, the Wilmslow-based shower, bathroom and tile supplier, expects underlying operating profits to rise 25% this year to £16.3m,on sales up 16.4% at £229m.
The group which will announce its full-year results for the year to March on June 19, said that despite currency weakness in South Africa, its figures would be in line with City expectations.
Despite a 20% weaker South African Rand costing £0.4m on translation of South African profits. underlying profit before taxation is expected to be 26% higher at approximately £14.7m.
Reflecting the pick-up in the domesticc housing market – which has boosted sales to the building trade – Norcros said UK revenue growth had improved in the last eight weeks of the financial year.
Generally the UK picture was mixed, with weakness in the retail sector for much the the year. Stripping out the acquisition of Vado 13 months ago, UK sales were 3.1% lower than the previous year with good progress in Triton Showers and Norcros Adhesives offset by lower revenue at Johnson Tiles.
Vado was a strong performer – revenue for the full year was 16.5% ahead of last year.
Following “challenging market conditions” in the 18 week period to the end of January 2014, Norcros said its South African business returned to double digit constant currency growth in the last eight weeks of the year.
A weaker Rand compared to last year resulted in full year reported Sterling revenue being 8.8% lower than the prior year and 6.6% lower on a like for like basis.
Year end net debt is expected to be in the region of £27m, down from £30.7m in 2013 and lower than market expectations.
Looking forward into the current financial year, Norcros said: “With our strong brands, leading market positions and continued self-help initiatives focused on market share gain, the board remains confident that the group should continue to make progress in line with market expectations for the year to 31 March 2015.”
