REG - Norcros PLC - JTSA Outcome of Strategic Review

NorcrosAnnouncement

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RNS Number : 8495N  Norcros PLC  23 June 2025

 

23 June 2025

 

Johnson Tiles South Africa

Outcome of Strategic Review

 

Norcros, the number one bathroom products business in the UK and Ireland (the
"Company"), announced on 10 April 2025 that it had initiated a strategic
review of Johnson Tiles South Africa ("JTSA") which is part of its South
African subsidiary, Norcros South Africa (Pty) Ltd ("NXSA").

 

We announce today that the outcome of the strategic review is that Johnson
Tiles SA will cease manufacturing at the end of this month, with the closure
of the business being carefully managed thereafter. Inventory will continue to
be sold, as usual, through our tile and bathroom retailer, Tile Africa.
Johnson Tiles SA is based in Olifantsfontein and had external revenue in FY25
of £12.3m representing less than 4% of Group revenue. The business made a
small underlying operating loss, pre central costs, and had an operating cash
outflow of £4.4m in the period. The business had fixed assets of c.£5m
(including land and buildings which will continue to be used by the Group),
and working capital of c.£14m including inventory of c.£16m as at 31 March
2025.

 

The closure process, including the manufacturing and business closure costs
and subsequent inventory realisations, is expected to be cash neutral when
complete.

 

There will be a small cash outflow in FY26, offset in the following year as
the remaining inventory is sold. All commitments to our staff, customers and
suppliers will be met. Going forward, the Group will now show the financial
performance at Johnson Tiles SA separately in the Company's financials as a
discontinued operation.

 

Thomas Willcocks, Chief Executive Officer, commented as follows:

 

"In June 2023, we communicated our strategic priorities, namely Portfolio
Development, Organic Growth, Operational Excellence and ESG with a focus on
ensuring that we develop a capital light and cash generative business
portfolio.

 

After a thorough review process, the difficult decision to close our Johnson
Tiles business in South Africa was reached, whilst recognising our long and
proud history of tile manufacturing in the country and more importantly the
impact on our people. I would like to thank the Johnson Tiles team for their
determination, commitment and contribution, especially over the last five
years that have been characterised by significant and ongoing macro-economic
challenges.

 

We have an excellent South African management team who will now focus on
growing our remaining profitable, and well invested businesses in the region."

 

 

Enquiries

 Norcros plc                                Tel: 01625 547700
 Thomas Willcocks, Chief Executive Officer
 James Eyre, Chief Financial Officer

 Hudson Sandler                             Tel: 0207 796 4133
 Nick Lyon

 Josh Hayler

 

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 2,000
people. The Company is listed on the London Stock Exchange. For further
information please visit the Company website: http://www.norcros.com
(http://www.norcros.com)

 

 

 

 

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