Norcros shareholder close to takeover threshold
CHESHIRE shower-to-tile manufacturer Norcros could be facing a takeover bid after a major shareholder bumped up its holding to 29.3%.
Jersey-based Lifestyle Investments PVT bought 3.6 million shares on Tuesday taking its holding close to the 30% threshold at which an investor must make an offer.
Lifestyle Investments has built its stake from around 6% in July, acquiring large numbers of shares nearly every month.
The stock exchange announcement revealing the latest trade came after the group unveiled its half-year figures.
The business has seen a decline in revenues at its Triton shower and Johnson Tiles businesses due to the slump in the construction industry. Both businesses reported a sharp decline in sales – by 13.7% and 10.2% respectively.
The group has already decided to shed 240 jobs, or 12% of the workforce, at its sites in the UK, South Africa and Australia. Around 110 jobs will go in the UK – 60 at Triton in Nuneaton and 50 at Johnson Tiles in Stoke.
The business said it did not expect an immediate improvement in trading conditions but hoped the redundancies would benefit performance in the second half. The cuts are expected to save up to £2.8m a year.
Norcros saw its pre-tax profit for the half-year to September 30 drop 31% to £4.2m on sales of £78.6m, down 7%. It took a £2.5m hit from higher energy costs.
Chief executive Joe Matthews said: “We’re keeping tight control of all costs, it’s a very difficult economy. But it’s not all doom and gloom. Energy prices have come down and we’re also driving new product development.”
There will be no interim dividend.
