("Norcros", the "Group" or the "Company")
Norcros, a market leading supplier of high quality and innovative bathroom and kitchen products will announce its interim results for the 27-week period ended 6 October 2019 on 14 November 2019. In advance of this, the Group is providing the following trading update.
Group underlying operating profit1 for the first half is expected to be in line with the Board's expectations, a resilient performance reflecting the Group's continuing success in winning share despite the challenging market conditions.
Group revenue for the 27 week first half is expected to be approximately £181.2m (2018: £162.6m), 11.4% higher than the prior year 26 week period on a reported basis, 12.8% higher on a constant currency basis, and 0.9% higher on a like for like2 constant currency basis.
Revenue Growth for 27 weeks to 6 October 2019
Constant currency LFL2
1 Underlying operating profit excludes IAS 19R administrative expenses, acquisition related costs and exceptional operating items
2 LFL (like for like) adjusts 2019 revenue for House of Plumbing (acquired 1 April 2019) and 27 to 26 week period pro-rating
UK revenue for the first half was 5.2% higher than the prior year on a reported basis and 1.3% higher on a like for like2 basis. This reflected market share gains as domestic revenue grew by 3.4% on a like for like2 basis for the period combined with an improved export performance in the second quarter.
Revenue in our South African business increased by 24.5% on a reported basis and 29.4% on a constant currency basis compared to the prior year. Like for like2 revenue was in line with the previous year reflecting the difficult economic environment and lower levels of activity. We continue to win share and have successfully integrated the House of Plumbing business, which has performed in line with our expectations.
Net debt is expected to be approximately £42m (2018: £53.5m), in line with expectations following the acquisition of House of Plumbing in the first half of the year.
The robust performance in the first half against the backdrop of challenging conditions in our two main markets demonstrates the resilience of the Group's strategy and operating model. The fragmented nature of our markets continues to provide growth opportunities for the Group as we maintain our focus on winning market share. The Board remains confident that the Group's leading market positions, portfolio of strong brands and financial strength will enable further progress in line with its expectations for the year to 31 March 2020.
Tel: 01625 547 700
Nick Kelsall, Group Chief Executive
Shaun Smith, Group Finance Director
Tel: 0207 796 4133
Notes to Editors
· Norcros is a market leading supplier of high quality and innovative bathroom and kitchen products with operations primarily in the UK and South Africa.
· Based in the UK, Norcros operates under seven brands:
· Triton - Market leader in the manufacture and marketing of showers in the UK
· Merlyn - The UK and Ireland's No. 1 supplier of shower enclosures and trays to the residential, commercial and hospitality sectors
· Vado - A leading manufacturer and supplier of taps, mixer showers, bathroom accessories and valves
· Croydex - A market-leading, innovative designer, manufacturer and distributor of high quality bathroom furnishings and accessories
· Abode - A leading niche designer and distributor of high quality kitchen taps, bathroom taps and kitchen sinks
· Johnson Tiles - The leading manufacturer and supplier of ceramic tiles in the UK
· Norcros Adhesives - Manufacturer of tile & stone adhesives, grouts and related products
· Based in South Africa, Norcros operates under four brands:
· Tile Africa - Chain of retail stores focused on ceramic and porcelain tiles, and associated products such as sanitary ware, showers and adhesives
· Johnson Tiles South Africa - Manufacturer of ceramic and porcelain tiles
· TAL - The leading manufacturer of ceramic and building adhesives
· House of Plumbing - Market leading supplier of specialist plumbing materials
· Norcros is headquartered in Wilmslow, Cheshire and employs around 2,200 people. The Company is listed on the London Stock Exchange. For further information please visit the Company website: http://www.norcros.com
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