25 April
2024
Sale of Johnson Tiles UK
Norcros plc ("Norcros" or the
"Group"), a market-leading designer and supplier of high quality
bathroom and kitchen products in the UK, Europe and South African
markets, today announces that following a strategic review, it has
entered into an agreement to sell Johnson Tiles UK to its existing
management team.
Johnson Tiles UK, based in
Stoke-on-Trent UK, designs, manufactures and sources ceramic floor
and wall tiles. For the full year ended 31 March 2023 Johnson Tiles
UK recorded revenue of £35.3 million, representing 8% of Group
revenue, made an operating profit of £0.5 million representing 1%
of Group underlying operating profit, had gross assets of £25
million, and has absorbed cash in each of the last three
years.
Consideration for the sale will be
£1 million, with a further modest earn out being dependent on the
future equity value of the business, with both payable in April
2028. The trade and assets are to be transferred to Johnson Tiles
Limited, a new company established by Managing Director, Stephen
Dixon, and his management team. The sale is expected to complete
during May 2024 after the conclusion of the customary employee
consultation period. The proceeds of the sale will be used for
general working capital purposes.
One off cash costs of less than £1
million, associated with the sale, and non-cash balance sheet
impairments of c. £15 million will be separately reported as
exceptional items in our full year results to 31 March 2024.
Johnson Tiles Limited will continue to be based at the
Stoke-on-Trent site, which will be retained by the
Group.
Norcros will announce its full year
results for the year ended 31 March 2024 on 13 June
2024.
Thomas Willcocks, CEO of Norcros
plc, said:
"In June 2023, we communicated our
strategic priorities, namely Portfolio Development, Organic Growth,
Operational Excellence and ESG and we will continue to ensure that
our capital allocation is aligned accordingly. This sale will allow
Norcros to focus on and accelerate the execution of our growth
strategy. Johnson Tiles UK has been a long-standing partner of the
Group and we thank them for their significant contribution. We wish
Stephen and the team every success for the future."
Note: For the purposes of MAR
and Article 2 of Commission Implementing Regulation (EU) 2016/1055,
this Announcement contains inside information relating to a
transaction by Norcros plc. This Announcement is being made
on behalf of the Company by Richard Collins, Group Counsel and
Company Secretary.
Enquiries
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Norcros plc
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Tel: 01625 547700
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Thomas Willcocks, Chief Executive
Officer
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James Eyre, Chief Financial
Officer
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Hudson Sandler
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Tel: 0207 796 4133
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Nick Lyon
Lucy Wollam-Coles
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Notes to Editors
Norcros is a market-leading designer
and supplier of high quality bathroom and kitchen products in the
UK, Europe and South African markets.
In the UK, Norcros operates under
seven brands, Triton, Merlyn, Grant Westfield, Vado, Croydex,
Abode, and Johnson Tiles.
In South Africa, Norcros operates
under four brands, Tile Africa, House of Plumbing, TAL, and Johnson
Tiles.
Norcros is headquartered in
Wilmslow, Cheshire and employs around 2,300 people. The Company is
listed on the London Stock Exchange. For further information please
visit the Company website: http://www.norcros.com