Profits surge at hungry Norcros
NORCROS, the ambitious company which supplies showers, taps, bathroom accessories, tiles and adhesives, in the UK and Souh Africa, has reported a 40% surge in profits.
The Wilmslow-based company’s underlying first half profits in the six months to September 30 jumped from £6.7m to £9.4m as revenues rose 9.3% to £118.7m.
The company, which has set a target of growing revenues to £420m by 2018, said it now expects its full year operating profits to beat City forecasts.
Reflecting on what he described as a “strong set of results”, chairman Martin Towers said: “Not only has the Group continued to make excellent progress in its existing businesses, but it has continued to advance towards its strategic targets with the acquisition of Croydex at the end of June 2015.
“With our strong brands, leading market positions and continued self-help initiatives focused on market share gain the group is well positioned to make further progress. Given the strong first half performance and momentum within our businesses, the board now expects the group to achieve underlying operating profit marginally ahead of market expectations for the year to March 31 2016.”
The acquisition of Croydex, a Hampshire-based bathrooms manufacturer for nearly £22m in June, is already making an impact – some 5.5% of the group’s revenue growrth was attributable to a three month contribution from the new business.
Chairman Towers said he expects to see a greater contribution from Croydex in the future too, as it benefits from being part of a larger group with global distribution channels and enhanced sourcing skills.
The company lifted its interim dividend by 19% to 2.2p per share.
