Norcros celebrating six of the best

CHESHIRE-based bathroom company Norcros is celebrating its sixth consecutive year of  growth with underlying pre-tax profits up 8.2% to £15.8m (2014: 14.6m).

In its preliminary results for the year ended March 31, the Wilmslow-based company cited significant improvement in its South African performance with turnover increasing 1.5% to £222.1m (2014: £218.7m) while net debt was down to £14.2m from £26.9m.

However, group chief executive Nick Kelsall said the UK market had remained challenging with continued growth in the trade sector, driven by continued improvements in the retail sector “impacted by sluggish consumer confidence, particularly in the lower and middle income groups”.

“UK revenue for the year at £149.1m (2014: £148.0m) was 0.7% ahead of the prior year, with higher revenue at Triton, Vado and Norcros Adhesives offsetting lower revenue at Johnson Tiles,” he said.

“UK underlying operating profit for the year was marginally lower at £13.8m (2014: £14.2m) with operating margins also slightly lower at 9.2% (2014:9.6%).
 
“Vado and Norcros Adhesives showed good profit progression in the year, and Triton maintained its strong profitability despite increasing revenue investment in order to develop new export markets. Johnson Tiles performance was impacted by lower revenue as well as production inefficiencies during part of the year which are now resolved.”

But he went on: “I am particularly pleased to report a significantly improved performance in our South African business where revenue was 15.1% higher on a constant currency basis and 3.2% higher on a reported basis.
 
“Underlying operating profit for the year in South Africa increased by 68.7% to £3.2m (2014: £1.9m) despite a weaker Rand, and operating margins improved from 2.7% to 4.4%.”