TIDMNXR
RNS Number : 1344V
Norcros PLC
14 April 2016
14 April 2016
("Norcros", the "Group" or the "Company")
Trading Update
Norcros, the market leading supplier of innovative branded
showers, taps, bathroom accessories, tiles and adhesives will
announce its preliminary results for the year ended 31 March 2016
on 14 June 2016. In advance of entering the close period, the Group
is providing the following trading update.
Trading
Group underlying operating profit(1) for the year is expected to
be marginally ahead of market expectations.
Group revenue for the year is expected to be in the region of
GBP236m (2015: GBP222.1m), 6.3% higher than the prior year, 11.0%
higher on a constant currency basis, and 2.9% higher on a constant
currency like for like basis(2) .
Year to 31 March 2016
---------------------------------------------
Reported Constant Constant
currency currency
LFL(2)
--------- ---------- ---------- ----------
UK +9.3% +9.3% -2.2%
South
Africa - % +15.0% +15.0%
Group +6.3% +11.0% +2.9%
--------- ---------- ---------- ----------
UK revenue for the year was 9.3% higher than the prior year
reflecting the first time contribution from Croydex which was
acquired on 25 June 2015. Croydex continued to perform strongly in
line with the Board's expectations. On a like for like basis(2) ,
UK revenue was 2.2% lower than the prior year reflecting more
challenging conditions in a number of UK retail channels and export
markets.
Our South African business continued to perform strongly
recording double digit constant currency revenue growth in the
second half of the year, resulting in full year revenue growth of
15% on a constant currency basis. The South African Rand was 15%
weaker than the prior year and consequently, South African revenue,
on a reported Sterling basis, was in line with the prior year.
Financial position
Closing year end net debt is expected to be in line with market
expectations of around GBP33m (2015: GBP14.2m). This includes a
GBP20.1m outflow relating to the acquisition of Croydex in June
2015, and a GBP3.1m outflow, net of cash acquired, relating to the
acquisition of Abode Home Products Ltd. completed on 31 March
2016.
Pension - recovery plan agreed
The March 2015 triennial actuarial valuation process for the
Group's UK defined benefit pension scheme has now been agreed with
the Scheme Trustee, and shows a deficit of GBP73.5m (2012:
GBP61.9m) representing an 84% funding level (2012: 85%). The
increased deficit is driven predominantly by historically low gilt
yields. A revised deficit recovery plan has been agreed with the
Scheme Trustee, with a cash contribution of GBP2.5m per annum
starting in April 2016, and increasing with CPI, payable over the
next 10 years. This compares to a deficit recovery payment of
GBP2.1m in the year to 31 March 2016 under the previous plan.
Nick Kelsall, Group Chief Executive, said
"The Group expects to deliver its seventh consecutive year of
growth in revenue and underlying operating profit with
profitability substantially ahead of the previous year. We have
also reached a satisfactory agreement with the Group's pension
scheme Trustees regarding the 2015 triennial valuation and recovery
plan, and our financial position remains strong.
Furthermore, the Group continues to make solid progress on its
strategy to double revenue to GBP420m by 2018. The acquisition of
Croydex has been integrated seamlessly and has performed strongly
in line with our expectations. We have also recently announced the
acquisition of the Abode business which is an exciting and
excellent fit with our current portfolio and we expect it will be
earnings accretive immediately.
I believe this leaves the Group well positioned to continue to
make further progress."
(1) Underlying operating profit is defined as operating profit
before IAS 19R administrative expenses, acquisition related costs
and
exceptional operating items.
(2) Like for like (LFL) excludes Croydex which was acquired in
June 2015.
ENQUIRIES:
Norcros plc Tel: 01625 547 700
Nick Kelsall, Group Chief
Executive
Shaun Smith, Group Finance
Director
Hudson Sandler Tel: 0207 796 4133
Nick Lyon
Charlie Jack
Katie Matthews
Notes to Editors
-- Norcros is a leading supplier of high quality and innovative
showers, taps, bathroom accessories, ceramic wall and floor tiles
and adhesive products with operations primarily in the UK and South
Africa.
-- Based in the UK, Norcros operates under six brands:
- Triton Showers - Market leader in the manufacture and
marketing of showers in the UK
- 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 - A 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 three 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
-- Norcros is headquartered in Wilmslow, Cheshire and employs
around 1900 people. The Company is listed on the London Stock
Exchange. For further information please visit the Company website:
http://www.norcros.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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