Norcros shows signs of home improvement

SHOWERS-to-tile maker Norcros has said that group sales for the year to March 31 increased to £200m, up 5% on a like-for-like basis when compared with the £196.1m achieved in 53 weeks in 2011.

In a trading update, the company, which owns Nuneaton-based Triton and Stoke’s Johnson Tiles, said that its group profit before exceptionals is also likely to increase by 5% on a like-for-like basis to £12.1m (£11.7m).

The company revealed that its UK businesses had increased its market share, delivering growth of 4.1%. Despite the tough environment, both Johnson Tiles and Norcros Adhesives performed well, although revenues at shower maker Triton were marginally lower than the previous year.

The recovery in its South African also continued, with Johnson Tiles and TAL growing market share both in its home market and through exports. Revenues from South Africa were up 9.6%.

The firm’s finance costs increased to £19m by year end (2011: £12.4m) but this is largely due to exceptional costs incurred in extricating itself from a previously-announced onerous lease which it said will save the company £3.3m a year.

“The outlook for both our UK and South African markets remains challenging,” the company said.

“Nonetheless, our businesses have continued to demonstrate their ability to gain market share and strengthen their leading market positions.

“The board remains confident that through the ongoing programme of growth initiatives and self-help actions Norcros will continue to make further progress.”