Norcros predicts record profit ahead of expectations
Norcros said it expected record annual profit ahead of expectations after strong trading continued in the later stages of its financial year.
Revenue for the year to 31 March was about £396m, up 22.2% from a year earlier and 20.6% excluding currency movements. Revenue rose 15.8% from two years earlier on a reported basis and 20.8% on a constant currency like-for-like basis.
Norcros's UK business increased revenue by 16.6% from a year earlier, driven by a 39.6% gain in the first half. On a like-for-like basis, annual revenue rose 16.1% from two years earlier. In South Africa the kitchen and bathroom products group's like-for-like revenue rose 30.5% at constant currency from two years earlier.
"The group has continued to trade robustly, acting decisively to counter unprecedented cost inflation and navigate exceptional supply chain challenges," Norcros said. "The board now expects underlying operating profit for the year to 31 March 20221 to be at a record level and ahead of its previous expectations."
Shares of Norcros rose 6.9% to 256.58p at 08:52 BST.
Norcros said it had agreed to pay £3.8m a year into its defined benefit pension scheme for the next five years, increasing with inflation and capped at 5% a year. The scheme's deficit was £35.8m at the end of March, down from £49.3m in 2018.