Shower firm Norcros suffers sales slip
NORCROS, which supplies showers, tiles and adhesives, has seen like-for-like UK sales slip by 4.2% despite signs of an improving housing market.
In an interim management statement for the 18 weeks to February 2 the firm – which owns Nuneaton-based Triton Showers and Stoke-on-Trent-based Johnson Tiles – said total UK sales were up 18.3%, reflecting the impact of its acquisition of bathroom tap specialist Vado last year.
The company said group sales grew by 12.8% on a constant currency basis which takes into account currency fluctuations. Norcros also has operations in South Africa.
It said UK Triton revenue was down by 1.2% but export income was up by 6.5% and Johnson Tiles sales were down by 8.9%. Vado “continues to perform to expectations” with revenue growth of 10%.
The company said: “The economic outlook in the UK continues to be positive in terms of construction activity and housing transactions benefitting the trade sector. As expected however, the retail sector is taking longer to benefit and still remains challenging.
“Whilst the medium term outlook in South Africa is still positive, the weakening Rand has impacted our markets in recent months, and has also had an adverse effect on Rand profit translation to Sterling.
“Nevertheless, with our strong brands, leading market positions and continued self-help initiatives focused on market share gain in both our home and export markets, the board remains confident that the group should continue to make progress in line with market expectations for the current year.”
