REG - Norcros PLC - Trading update for the year ended 31 March 2025

NorcrosAnnouncement

10/04/2025 07:00

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RNS Number : 3818E  Norcros PLC  10 April 2025

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 2025(1) 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 expectations(2).

 

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 ("LFL(3)")
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
(http://www.norcros.com/)

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