Stronger trade demand lifts Norcros

BATHROOM accessories and tile manufacturer Norcros is seeing stronger demand from tradesmen but expects a dip in half year revenues due to currency fluctuations.

In a trading update for the six months to the end of September, the Wilmslow group said its performance was in line with full year market expectations, but sales will be 2.4% lower at £108m due to the weaker South African rand.

Norcros said underlying pre-tax profit was expected to be up by 13% at £6.7m.

Revenue at the UK business was up 1% in the second quarter with 3.7% growth in the Triton showers business and sales 6.2% higher in the Vado tap division. But Johnson Tiles revenue was down by 3.7% in the first half.

Norcros said this was down to weaker retail and export sales, although the trade sector is showing “strong growth”. It described the South African market as “challenging” but saw first half revenues grow by 15.1% on a constant currency basis. The group’s net debt stands at £20m.