REG - Norcros PLC - Interim Management Statement and Re-financing <Origin Href="QuoteRef">NXR.L</Origin>

NorcrosAnnouncement

06/09/2014 20:23

For best results when printing this announcement, please click on the link
below:

http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20140723:nRSW0376Na


RNS Number : 0376N
Norcros PLC
23 July 2014 
 
23 July 2014 
 
Norcros 
 
("Norcros", the "Group" or the "Company") 
 
Interim Management Statement and Re-financing 
 
Ahead of its AGM, Norcros, the market leading supplier of innovative branded
showers, taps, bathroom accessories, tiles and adhesives, publishes its
Interim Management Statement covering the 13 week trading period to 29 June
2014. The Group also announces that it has entered into a new £70m committed,
unsecured revolving credit facility with a £30m accordion facility to July
2019. 
 
Trading 
 
Group revenue from continuing operations for the 13 week period was 0.9%
higher on a constant currency basis compared to the same period last year but
5.7% lower in Sterling reflecting a weaker South African Rand. 
 
Market conditions remain mixed for our UK businesses. Revenue from the UK
market was 1.4% higher than the same period last year with continued growth in
the trade sector of 4.2% but with the retail sector 3.7% lower. Export revenue
was however 13.2% lower reflecting the timing of commercial projects in Vado
outweighing good export growth in Triton.  This left total revenue from our UK
businesses for the 13 week period 1.6% lower than the same period last year. 
 
Revenue at Triton for the 13 week period was 2.6% lower than the same period
last year. UK revenue was 6.9% lower with revenue from the trade sector 13.8%
lower due to destocking and internal restructuring in the national merchants.
Retail sector revenue was 5.3% lower albeit improving through the 13 week
period. Export revenue, which is predominantly derived from Ireland and
accounts for 19% of overall Triton revenue, performed well in the period
growing 21.3%. 
 
Vado continued its strong UK revenue growth for the 13 week period at 18.5%
ahead of last year but was offset by export revenue 35% lower, reflecting
commercial project timing and distributor destocking in the Middle East which
is expected to correct in the balance of the financial year. This left total
revenue for the 13 week period 6.4% lower than last year. 
 
Revenue at Johnson Tiles for the 13 week period was 0.9% lower than the same
period last year. UK trade revenue continued to improve, being 11.8% higher.
However, UK retail revenue declined 8.7% in the 13 week period reflecting weak
sales out across the sector. This left overall UK revenue broadly in line with
last year. Export revenue was 1.5% lower than the same period last year. The
cost base restructuring implemented in the second quarter last year has
ensured that profitability has materially improved over the same period last
year. 
 
Revenue from our South African businesses grew by 6.2% on a constant currency
basis, but a weaker Rand saw Sterling reported revenue 13.1% lower than the
same period last year. Tile Africa experienced particularly strong constant
currency growth at 12.1% and Johnson Tiles South Africa continued to make good
progress towards profitability. 
 
Re-financing 
 
Norcros has entered into a new committed £70m unsecured revolving credit
facility and a £30m accordion facility through to July 2019 with three banks.
Two of the banks, Lloyds and Barclays are longstanding lenders to the Group,
whilst the third, HSBC, introduces a new relationship replacing Svenska
Handelsbanken. The terms of these new arrangements provide the Group with
increased flexibility reflecting its strong financial position, and will
reduce net interest costs by approximately £0.2m per annum based on current
levels of net debt and leverage. 
 
Outlook 
 
The economic outlook in the UK continues to be positive in terms of
construction activity and housing transactions benefitting the trade sector.
As reported previously, the UK retail sector is taking longer to recover and
still remains challenging. Whilst the medium term outlook in South Africa is
still positive, the weak Rand continues to have an adverse effect on Rand
profit translation to Sterling. Nevertheless, given the continuing improvement
in the financial performance of our UK and South African tile businesses and
the expected recovery in Vado export revenues as commercial projects complete,
the Board remains confident that the Group should continue to make progress in
line with market expectations for the current year. 
 
ENQUIRIES: 
 
 Norcros plc                           Tel: 01625 547 700  
 Nick Kelsall, Group Chief Executive                       
 Martin Payne, 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 in the UK and South Africa. 
 
·      Based in the UK, Norcros operates under four 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 
 
·     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 1650
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