Cold weather blamed for Norcros sales slump
NORCROS, which supplies showers, tiles and adhesives, saw like-for-like sales slip 5.3% in the 13 weeks to June 30.
In an interim statement ahead of an annual general meeting today, the company, which owns Stoke’s Johnson Tiles and Nuneaton-based Triton, said the market remained challenging with the retail sector weaker than resilient trade business.
It said revenues in April and May were affected by the cold weather and destocking by a number of key customers.
UK revenue for the 13-week period was 9.9% lower than the same period last year on a like-for-like basis excluding Vado, a bathroom tap and mixer shower specialist which was acquired in April for up to £16m. Taking Vado into account group sales were 9.1% higher during the period.
Revenue at Triton in May and June combined was in line with the same period last year, but was hit by destocking by a number of key UK retail customers in April, which left revenue 11.3% lower for the period. Sales at Johnson Tiles were 10.7% lower for the 13-week period.
The company said: “Our South African business continues to make progress despite the weaker Rand, delivering double digit constant currency revenue growth.
“The outlook for the UK housing sector is improving and should lead to increased activity in our markets. Whilst short term destocking in the retail sector has impacted performance in the first quarter, there are some early signs of improving trends in our UK trade sector performance in the quarter.
“Even though the second half weighting of cost reduction benefits in Johnson Tiles UK will mean that profitability will be more heavily weighted to the second half than normal, the board remains confident of the outcome for the full year.”
