New builds boost Norcros in first half
Branded shower, tap, bathroom accessory, tile and adhesive supplier Norcros updated the market on its trading on Thursday, ahead of the announcement of its interim results for the half year to 30 September, which the board said would occur on 16 November.
The FTSE SmallCap stock said group revenue and underlying operating profit in the first half was expected to be in line with its expectations.
It said group revenue for the first half was expected to be approximately £144.9m, 12.5% higher than the prior year and 7.1% higher on a constant currency basis.
The growth reportedly reflected a “robust performance” in Norcros’ UK business and continued growth in its South African operation.
UK revenue for the first half was 8.4% higher than the prior year, which was said to reflect growth in all channels, benefitting in particular from strong positions in the new build sector and in “selective export markets”.
Its South African business once again delivered revenue growth in the first half of the year - 4.8% higher than the prior year on a constant currency basis - which the board said continued the sustained progress of recent years.
Revenue was 21.0% higher on a reported basis, reflecting a stronger South African rand.
The group said it was continuing to focus on working capital and cash management, and as a result of that closing net debt wais expected to have reduced to around £21m from £27.5m year-on-year.
“Against the backdrop of challenging market conditions, our performance demonstrates the strength of our market positions and the resilience of our diversified business portfolio delivering revenue growth in all UK sectors, strong growth in exports and sustained progress in South Africa,” the Norcros board said in its statement.
“The board remains confident that the group will continue to make progress in line with its expectations for the year to 31 March 2018.”