10 April
2025
Norcros
plc
Trading update for the year ended 31
March 2025:
Results in-line with expectations;
Strategic review of Johnson Tiles South Africa
Norcros plc ("Norcros" or the
"Group"), the market-leading designer and supplier of high-quality
bathroom and kitchen products, will announce its full year results
for the year ended 31 March 20251 on 12 June 2025. In
advance of this, the Group is pleased to provide the following
scheduled trading update.
Underlying operating
profit in line with expectations
During the year, the Group continued
to demonstrate the attractiveness of its business model and the
strength of its innovative products and customer service which
underpin its leading market positions. As a result, the Board
expects underlying operating profit for the year ended 31 March
2025 to be in line with market expectations2.
Group revenue for the year ended 31
March 2025 is expected to be marginally ahead of the prior year on
a constant currency ("CC") like for like ("LFL3") basis.
Reported revenue is expected to be 6.2% lower than the previous
year at circa £368 million (2024: £392.1 million).
|
|
Revenue
versus prior year
|
|
|
LFL
|
Reported
|
|
UK
|
1.0%
|
(9.1%)
|
|
South Africa
|
1.3%
|
1.3%
|
|
South Africa at CC
|
0.4%
|
0.4%
|
|
Group
|
1.1%
|
(6.2%)
|
|
Group at CC
|
0.8%
|
(6.4%)
|
In our UK businesses, LFL revenue
was 1.0% ahead of prior year demonstrating market share growth in a
weak demand environment. Reported revenue was 9.1% lower than the
prior year largely due to the sale of Johnson Tiles UK which
completed in May 2024. These market share gains were again driven
by new product launches, excellent supply chain management and
award winning customer service.
In our South African business,
revenue for the year was 1.3% higher on a reported basis and 0.4%
higher on a CC basis. Energy disruptions were minimal in the period
and despite consumer confidence remaining subdued, our retail
business, in particular, is well-placed to benefit as the market
gradually recovers.
Financial position
The Group remains in a strong
financial position with net debt (on a pre-IFRS 16 basis) at 31
March 2025 expected to be circa £37 million
(2024: net debt of £37.3 million) with cash generation in the
period impacted by cash outflows of circa £4.4 million at Johnson
Tiles South Africa. Net debt leverage is circa 1.0x underlying
EBITDA and provides a solid foundation from which the Group can
execute its strategic priorities.
Strategic review of Johnson Tiles
South Africa
In line with our strategy to develop
a capital light and cash generative business portfolio, the Group
has initiated a strategic review of Johnson Tiles South Africa
which should conclude by July 2025.
Challenging demand conditions in the
tile manufacturing segment of the South African market have
continued, exacerbated by a recent material increase in tile
manufacturing capacity in the region which has made it increasingly
difficult to sell our capacity profitably.
Johnson Tiles South Africa delivered
external revenue for the year ended 31 March 2025 of circa £12m
(representing circa 3% of Group revenue) a small underlying
operating loss pre-South African central costs in the year and
operating cash outflows of circa £4.4m.
Thomas Willcocks, Chief Executive
Officer, said:
"We have again delivered a strong
set of results, underpinned by the strength of our brands, their
leading positions and the successful execution of our strategy.
There is clearly macro uncertainty at present with the consequences
of increased global tariffs yet to play out. Norcros has negligible
direct exposure to the USA (revenue less than 0.5%) and a proven
local and international supply chain, again with no direct exposure
to the USA.
The Group will proactively manage
our way through this period, as we have successfully done in the
past, whilst we continue to look to capitalise on the further share
gain opportunities that our scale, supply chain resilience and
strong balance sheet provide."
Notice of results
The Group will announce its full
year results for the year ended 31 March 2025 on Thursday 12 June
2025.
1. The accounting
reference 'year to 31 March 2025' relates
to the 52-week period commencing on 1 April 2024 and ending 30
March 2025
2. Norcros-compiled market consensus for the year to 31 March
2025 underlying operating profit is £43.0 million with a range of
£42.0 million to £43.8 million
3. LFL (like for like)
adjusted for Johnson Tiles UK and Norcros Adhesives
Enquiries
|
Norcros plc
|
Tel: 01625 547700
|
|
Thomas Willcocks, Chief Executive
Officer
|
|
|
James Eyre, Chief Financial
Officer
|
|
|
|
|
|
Hudson Sandler
|
Tel: 0207 796 4133
|
|
Nick Lyon
Lucy Wollam-Coles
|
|
|
|
|
|
|
|
Notes to Editors
Norcros is a market-leading group of
brands specialising in design-led, sustainable bathroom and kitchen
products across the UK, Ireland, South Africa, and select export
markets. Each of our brands offers mid-premium product ranges
distinguished by their innovation, design, and commitment to
sustainability, all backed by industry-leading service to our trade
and retail customers.
Through a strategic blend of
acquisitions and organic growth, Norcros has become the UK and
Ireland's number one bathroom products group. We see significant
potential for further expansion within this large and fragmented
market, accelerating growth and capturing market share through
continued acquisitions, organic development, operational
excellence, and meaningful ESG capabilities.
Norcros encompasses the renowned
brands, Triton, Merlyn, Grant Westfield, VADO, Croydex, and Abode
in the UK, and Tile Africa, TAL, Johnson Tiles South Africa, and
House of Plumbing in South Africa.
Norcros is headquartered in
Wilmslow, Cheshire and employs around 2,100 people. The Company is
listed on the London Stock Exchange. For further information please
visit the Company website: www.norcros.com
