REG - Norcros PLC - Trading update

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RNS Number : 5726D  Norcros PLC  16 October 2025

16 October 2025

 

 

Trading update

 

Norcros plc ("Norcros" or the "Group"), the number one bathroom products
business in the UK and Ireland, will announce its Interim Results for the 27
weeks to 5 October 2025 on 20 November 2025. In advance of this, the Group
provides the following trading update.

 

Strategic delivery and market share gains drive margin progression

 

The Group has delivered a robust first-half performance, underpinned by the
strength of our market leading brands in a demand environment that remains
challenging.

 

Strategic delivery continues with the closure of Johnson Tiles SA, the ongoing
implementation of our operational excellence initiatives, and the acquisition
of Fibo Holding AS in Norway shortly after the end of the period. In addition,
our exciting new product development programme, combined with ongoing
cross-selling continue to drive profitable organic market share growth and
margin improvement. We are well positioned to further accelerate growth in
both the RMI and Housebuilding markets when market conditions improve.

 

After a slow start to the period, like-for-like (LFL(1)) revenue on a constant
currency (CC(2)) basis was 3% ahead of the prior year in both regions in the
last 18 weeks. Group revenue for the 27-week period is expected to be 1% ahead
of the prior year on a  LFL CC basis. Reported(3) revenue is expected to be
approximately £184 million (2024(3): £181.9 million), reflecting the
increase to a 27 week period versus 26 week period in the prior year, offset
by the exit of Johnson Tiles UK in the prior year.

 

 

                        H1 LFL(1) revenue
                        9 weeks ending 1 June 2025  18 weeks ending 5 October 2025  FY26 H1
 UK & Ireland           -3%                         3%                              1%
 South Africa           -7%                         0%                              -2%
 South Africa at CC(4)  -4%                         3%                              1%
 Group                  -5%                         2%                              0%
 Group at CC            -4%                         3%                              1%

( )

 

Group underlying continuing operating profit(4) is expected to be c.£21.8
million (2024(3): £20.4 million) in the first half of the year. Group
operating margins in the period have increased to c.11.9% (2024: 11.2%) with
our core UK&I market operating margin up to c.14.8% (2024: 13.6%).

 

 

Financial position

 

The Group remains in a strong financial position with closing(5) net debt (on
a pre-IFRS 16 basis) expected to be c. £31 million (net debt of £44.9
million as at 30 September 2024 and £36.8 million as at 31 March 2025). This
represents leverage of approximately 0.6x underlying EBITDA, providing a solid
foundation for further strategic delivery.

 

Acquisition of Fibo Holding AS

 

On 15 July 2025, the Group announced the proposed acquisition of Fibo Holding
AS ("Fibo"), a leading supplier of high-quality waterproof decorative wall
panels. Post the period end and as communicated on 13 October 2025, the CMA
review process has approved the acquisition which has now completed(5). We are
delighted to welcome our new colleagues at Fibo to the Norcros group.

 

Outlook

 

The Board remains confident that our market leading positions and
implementation of our strategy will continue to deliver market share gains for
the year ending 31 March 2026. Despite the ongoing challenging market
conditions, the Board expects full year underlying operating profit to be in
line with market(6) expectations, and to show further progress towards our
medium-term strategic targets.

 

 

(1.) LFL (like for like) adjusted from a 27 to 26 week period pro-rating and
Johnson Tiles UK which was sold in the prior year

(2.) CC refers to constant currency basis

(3.) Discontinued Johnson Tiles SA is not included in either the current or
prior year figures

(4.)( )Underlying operating profit is defined as operating profit from
continuing operations before non-underlying and exceptional operating items

(5.  )At the period end of 5 October 2025 net debt of c.£31m represents
leverage of c.0.6x. Post the period end and the acquisition of Fibo, proforma
leverage is expected to be c.1.6x

(6.) Norcros compiled consensus for FY26 underlying operating profit
previously was £43.9m to £45.2m excluding Fibo and is currently £47.2m to
£48.7m including Fibo

 

 

 

 

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

About Norcros

Norcros is a market leading group of brands specialising in design led,
sustainable bathroom products across the UK, Ireland, Scandinavia, 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 Ireland, Fibo in Norway and Tile
Africa, TAL, 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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