Norcros meets guidance in 'difficult' markets

Norcros, the supplier of branded showers, tiles and adhesives focused in the UK and South Africa, rose strongly on Thursday after its full-year results came bang in-line with earlier guidance, with underlying growth in revenues and profits robust despite 'difficult' markets.

Revenue in the 52 weeks to March 31st increased by 2.1% to £200.3m from £196.1m in the previous year (which consisted of 53 weeks).

When adjusted for currency movements and period duration, like-for-like (LFL) sales increased by 5.6%.

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In the UK, the company saw strong sales growth in Johnson Tiles and Norcros Adhesives, which offset a slight decline in Triton Showers given challenging Christmas sales and revenue from exports to Ireland. Tiles and Adhesives sales growth in South Africa was strong.

Meanwhile, underlying pre-tax profit improved by 3.5% from £11.7m to £12.1m, up 5.7% on a LFL basis. Reported pre-tax profit jumped 25.3% from £7.5m to £9.4m.

The total dividend per share was increased by 16.7% year-on-year to 0.42p.

The first two months of the current year have been in line with the group's expectations, though Triton Shower has been weak.

"The strength of our brands, our market positions, our customer relationships and the encouraging operational improvements in the latter part of the year in both the South African and UK tiles businesses gives the Board confidence that unless markets deteriorate further, our businesses will continue to make progress in the coming year," said Chairman John Brown.

Shares were 7.87% at 12p before the close in London.

BC