Bathroom specialist issues profit warning on back of coronavirus supply chain threat
Listed bathroom specialist Norcros issued a profit warning this morning as it prepares for potential disruption to its supply chain due to the coronavirus.
The company said that while the virus has had little short term impact to date because its UK-based stock levels have been sufficient to satisfy customer demand, the slower than anticipated return to full production at its China based suppliers is likely to impact the company’s “seasonally important” remainder of this financial year and early next.
The virus has killed more than 1,800 people in China sparking a shutdown that has seen factories close across the country, which is having an impact on global supply chains.
“The situation however remains fluid and is being closely monitored and actively managed,” said the supplier of branded showers, taps, bathroom accessories, tiles and adhesives, which operates under several brands including Triton and Johnson Tiles.
In a trading update for the ten months to February 2, Norcros said the group has continued to win market share in its major markets despite conditions remaining challenging since its interim results were announced in November.
It said: “The board continues to remain confident that the group’s leading market positions, strong brands and financial strength will deliver further growth although in the short term it is now expected that underlying profitability for the year to 31 March 2020 will be below market expectations albeit ahead of last year.”
