Norcros reports resilient first-half trading performance
Norcros
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14:53 10/10/24
Bathroom and kitchen product designer and supplier Norcros reported a resilient trading performance for the first half of the year in an update on Thursday.
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The London-listed firm said its interim results, set to be announced on 21 November, were expected to show revenue of £188m, 7% lower than the prior year’s £201.6m, largely due to the sale of Johnson Tiles UK in May.
On a like-for-like constant currency basis, revenue remained stable compared to the prior year.
Underlying operating profit for the period was expected to be at least £19.5m, compared to £21.4m in 2023.
The UK business saw like-for-like revenue growth of 1%, driven by new product development and cross-selling efforts, though reported revenue was down 9% due to the sale of Johnson Tiles.
Norcros said its South African business experienced a slight decline, with revenue down 1% on a reported basis and 2% lower in constant currency, as consumer sentiment remained subdued despite an improvement in electricity supply stability.
The company said it remained in a strong financial position with net debt expected to be around £45m, reflecting normal seasonal cash flow trends.
Its board remained confident in the group’s strategy, and expected full-year operating profit to meet market expectations, with further progress anticipated towards its medium-term targets despite ongoing market challenges.
At 1134 BST, shares in Norcros were down 0.84% at 237p.
Reporting by Josh White for Sharecast.com.