Improved sales and profits allow Norcros to cut debt
NORCROS, the Wilmslow-based showers-to-tile maker, has said that positive start it made to its financial year has been maintained, with like-for-like sales sales for the 27 weeks to October 3 up to £96.7m, compared with £83m for a 26-week period last year.
The firm said that like-for-like sales, adjusted to discount the extra week, were expected to have increased by 12.3% to £93.2m.
It achieved growth rates of 5.8% in its home market in the UK, 6.6% in South Africa and 9.1% in the rest of the world.
It added that its trading profit for the period was expected to be not less that £6m, compared with £3.5m last year. Pre-tax profit before exceptionals is expected to be not less than £3.4m – double last year’s figure.
It said that both the Triton Showers and Johnson Tiles delivered a “robust” performance last year, while its South African business went from posting a significant loss last year to making a small trading profit.
The firm said that its net debt had now reduced to £15m, compared with £48.9m a year ago. This is mainly due to last year’s rights issue which raised a net £27.7m, but also the sale of its minority stake in Australian firm RJ Beaumont for £4.4m and a stronger focus on cash management.
As a result, Norcros said that it plans to restore its progressive dividend policy, subject to trading conditions, when it announces its interim results next month.
“The group’s trading performance continues to be resilient despite the backdrop of continuing uncertainty in both the UK and South African economies,” the firm said in a statement.
“Whilst appropriately cautious about the wider economic situation during the remainder of this year, the board is confident that further progress can be sustained.”
