First quarter revenue growth for Norcros
NORCROS, the Cheshire-based bathroom supplier which recently snapped up a rival in a near £22m deal, has seen revenues rise despite challenges from a sluggish UK retail sector.
The listed Wilmslow company, which employs 1800 people, said overall trading for the first quarter was in line with the board’s expectations.
Group revenue from continuing operations for the 13 week period to June was 4.3% higher on a constant currency basis compared to the same period last year.
“Market conditions remain varied for our UK businesses. Revenue was 0.6% higher than the same period last year with increased activity in the trade sector driven by new house build and commercial contracts, but with the retail sector remaining sluggish. Revenue from our South African businesses grew by 12.0% on a constant currency basis and by 7.9% in Sterling terms,” Norcros said.
In June, the company announced it has bought rival business Croydex Group for £21.9m, of which £20.8m has been paid in cash now, with a further £1.1m deferred for three years.
Revenue from the newly-acquired business is not included in the figures released this morning.
Nick Kelsall, group chief executive, said: “Whilst the UK retail sector remains challenging, the performance in both the UK trade sector and in South Africa, together with improved manufacturing efficiencies in Johnson Tiles UK, means the board remains confident that the group will continue to make progress in line with market expectations for the current year.”
