REG - Norcros PLC - Results for the 53 weeks ended 5 April 2026
Today 07:00
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RNS Number : 8463H Norcros PLC 11 June 2026
11 June 2026
Norcros plc
Strong FY results and significant strategic progress
Clear platform for sustained growth
Norcros plc ("Norcros" or the "Group"), the number one branded bathroom
products business in the UK and Ireland, today announces its results for the
53 weeks ended 5 April 2026 (prior period: 52 weeks ended 30 March 2025).
Financial highlights
· Group revenue up 10.6% in a challenging market; driven by the
acquisition of Fibo and market share gains
· Group underlying operating profit(1) up 7.9% to £48.0m (2025:
£44.5m); Fibo acquisition and strong UK&I performance
o Group operating margin at 12.2% (2025: 12.5%) slightly lower, as expected,
following Fibo acquisition. However European (previously UK&I)
like-for-like ("LFL") operating margins up 0.4% to 15.9%
o Underlying profit before tax(1) up 8.2% to £40.9m (2025: £37.8m)
· Excellent cash conversion of 116% (2025: 84%) with underlying net
debt of £65.8m (1.2x leverage) demonstrating the Group's ability to rapidly
reduce leverage following debt funded acquisitions
o Underlying return on capital employed(1) (ROCE) up 2.7% to 20.0%
o EPS (diluted and underlying) up 7.2% to 35.8p (2025: 33.4p)
o Full year dividend increased by 8.7% (+0.9p) to 11.3p per share
Operational and Strategic highlights
· Ahead-of-market organic revenue growth, driven by new product
launches, cross-selling and high service levels
· Regulatory tailwinds supporting sustainability-related market share
gains; 2028 SBTi carbon targets already met
· Ongoing investment in systems infrastructure driving
simplification, with service and efficiency gains
· Completed the acquisition of the highly complementary and earnings
accretive Fibo business in Norway
· Exited tile manufacturing through the closure of Johnson Tiles
South Africa
· Post year-end, announced the intention to explore options to sell
the Group's remaining South African business
Current trading and outlook
Group revenue in the two months to the end of May 2026 was 3.1% ahead of the
prior year on a constant currency like for like basis, adjusting for Johnson
Tiles SA and the acquisition of Fibo. Market conditions are likely to remain
subdued, with the pace of any recovery in the new build sector still unclear.
The mid-premium RMI sector currently remains more resilient and the Board's
expectations for FY27 are unchanged.
Thomas Willcocks, CEO, commented:
"The past year has been pivotal for Norcros as we delivered another strong set
of results alongside significant strategic progress to reshape and strengthen
the Group for the long term. We have seen a strong performance across our core
European markets supported by the successful acquisition of Fibo in Norway.
Margins have again improved in the UK and Ireland offset by a softer
performance in South Africa, increased Group investment to support growth
initiatives, and as expected, some initial margin dilution from the Fibo
acquisition.
Our businesses have leading branded market positions, well-invested inventory
levels and deep supplier and customer relationships. This, together with our
collective scale, means we are able to perform through periods of volatility
and to take market share opportunities that arise at times such as these.
We have further simplified the Group's portfolio and increased exposure to the
more resilient mid-premium markets, taking a number of important strategic
steps during the year as we continue to sharpen the Group's focus on
sustainable bathroom products.
We continue to build momentum, with share gains and progress being made across
our strategic priorities. Supported by our strong financial position and
proven through-cycle model, whilst market conditions remain uncertain, we are
confident in our ability to deliver further progress towards our medium-term
ambitions in the year ahead."
Continuing Operations - Financial Summary
( ) 2026 2025 as restated(3) % change
Revenue £393.4m £355.8m 10.6%
Revenue constant currency LFL(2) 0.6%
Underlying operating profit(1) £48.0m £44.5m 7.9%
Underlying operating profit margin 12.2% 12.5% (0.3pp)
Operating profit(4) £22.2m £9.6m 131.3%
Underlying profit before taxation(1) £40.9m £37.8m 8.2%
Underlying operating cash flow(1) £57.6m £38.9m 48.1%
Underlying net debt(5) (£65.8m) (£36.8m) (78.8%)
Diluted underlying EPS(1) 35.8p 33.4p 7.2%
Dividend per share 11.3p 10.4p 8.7%
Underlying Return on Capital Employed(1) 20.0% 17.3% 2.7pp
Cash conversion 116% 84%
(1 ) Definitions and reconciliations of alternative performance measures are
provided in note 5
(2 ) Like-for-like ("LFL") adjusted from a 53 to 52 week period, Fibo which
was acquired in the current year, and Johnson Tiles UK which was sold in the
prior year
(3 ) Discontinued Johnson Tiles SA is not included in the income statement
in the current or prior year figures, consistent throughout this announcement.
Note 8 provides further details on the results of discontinued operations
(4 ) Operating profit is stated after acquisition and disposal related costs
(the prior year included costs of £22.2m relating to the disposal of Johnson
Tiles UK), exceptional operating items and IAS 19R administrative expenses.
Details are contained later in this statement
(5 ) Net debt is on an underlying basis and is net of cash, capitalised costs
of raising finance and total borrowings. IFRS 16 lease commitments are not
included
FY26 Results Presentation
There will be a presentation today at 9.30am for analysts at the offices of
Berenberg, 60 Threadneedle St, London EC2R 8HP. To confirm your attendance,
please email Norcros@mhpgroup.com.
There will also be a live, listen-only audio webcast of the event available at
https://brrmedia.news/NXR_FY26 (https://brrmedia.news/NXR_FY26) . The
supporting slides will be available in the Investor section of the Norcros
website at www.norcros.com
(https://protect.checkpoint.com/v2/r02/___http:/www.norcros.com___.YXAxZTpzaG9yZWNhcDpjOm9mZmljZTM2NV9lbWFpbHNfYXR0YWNobWVudDo4YjExMjU4M2M0OTRiMTk3ZWFmYzg2OWY5MGQ4ZDJmODo3OjRlZGI6MGU2MzJjNmJjYjUwNzUyMzM3YzVmMzg1ZDNlZDBjM2I4YjBhZDhlMTVkZWRlNTQwNDUxNjgyZDk0OTFjYWNjNDpwOkY6Tg)
later in the day.
Enquiries
Norcros plc Tel: 01625 547700
Thomas Willcocks, Chief Executive Officer
James Eyre, Chief Financial Officer
MHP - Financial PR Tel: 07817 458 804
Tim Rowntree Lucy Gibbs
Ollie Hoare Jake Terry
Notes to Editors
Norcros invests in and grows design-led, capital-light branded bathroom
product businesses. Our decentralised collaborative model enables
entrepreneurial management teams to operate independently while benefiting
from the advantages of our collective scale. Each of our brands offers
mid-premium product ranges distinguished by in-house design, a strong and
growing commitment to sustainability, and industry-leading service for trade
and retail customers.
Through a strategic combination of acquisitions and organic growth, Norcros
has become the leading branded bathroom products group in the UK and Ireland.
We see significant opportunity for further expansion, focused primarily on the
large and fragmented European market. We aim to accelerate growth and increase
market share through organic growth, selective acquisitions, operational
excellence, and our fast developing and meaningful ESG capabilities.
Norcros includes the renowned brands Triton, Merlyn, Grant Westfield, Fibo,
Vado, Croydex, and Abode in Europe, and Tile Africa, TAL, and House of
Plumbing in South Africa.
Norcros is headquartered in Wilmslow, Cheshire, and employs approximately
2,100 people. The Company is listed on the London Stock Exchange. For further
information, please visit the Company website: www.norcros.com
(https://protect.checkpoint.com/v2/r02/___http:/www.norcros.com___.YXAxZTpzaG9yZWNhcDpjOm9mZmljZTM2NV9lbWFpbHNfYXR0YWNobWVudDo4YjExMjU4M2M0OTRiMTk3ZWFmYzg2OWY5MGQ4ZDJmODo3OjRlZGI6MGU2MzJjNmJjYjUwNzUyMzM3YzVmMzg1ZDNlZDBjM2I4YjBhZDhlMTVkZWRlNTQwNDUxNjgyZDk0OTFjYWNjNDpwOkY6Tg)
Chief Executive Officer's Review
Strong financial performance, clear platform for sustained growth
Norcros delivered another strong performance this year, continuing to execute
our strategy and further strengthening the quality of our business portfolio.
Despite ongoing economic and geopolitical uncertainty, our differentiated
model, strong brands and disciplined execution helped us grow market share and
deliver in line with our plans.
Scale matters. Our businesses hold leading positions in their markets,
underpinned by well-invested inventory and strong customer relationships.
Together, these strengths give us resilience through periods of volatility and
create opportunities to gain market share.
We continue to make excellent progress against our strategic targets having
achieved all but the operating margin target:
· Organic growth at 2% - 3% above the market
· Group underlying operating profit margin to reach 15%
· Cash conversion greater than 90%
· Return on capital employed greater than 20%
· Delivery of SBTi-validated science-based emissions targets by
2028
Our operating margin target is well within our reach, and we expect to deliver
this in the medium term as Fibo margins improve and we find new shareholders
for our remaining South African assets. The strategic targets will be reset at
this time. The material progress against our financial targets has been driven
by our clear ongoing focus on the four pillars that we shared at our capital
markets event in May 2023, supporting the Group's development and long-term
value creation.
Portfolio development
Portfolio development remains central to our strategy, helping us build a
capital-light, cash-generative Group with exposure to attractive mid-premium
segments. During the year, we completed the acquisition of Fibo in Norway, a
highly complementary business with strong branded positions and attractive
margins. Fibo broadens our scale, extends our geographic reach and strengthens
our product capability. It will also be materially earnings accretive in its
first full year of ownership.
The Group also completed the closure of Johnson Tiles South Africa, marking
our exit from tile manufacturing and further improving our portfolio's capital
efficiency and resilience. The Board is also now exploring potential sale
options of the wider South African business as we continue to sharpen our
focus on the European bathroom market in line with our strategy.
Acquisitions remain an important part of our growth strategy. We maintain a
well-developed pipeline across our core UK and Ireland markets and selected
international geographies, focused on complementary, scalable businesses
capable of delivering attractive returns under Norcros ownership.
Organic growth
Alongside portfolio development, organic growth remains a core driver of value
creation. Across the Group, we delivered ahead-of-market revenue growth,
supported by new product development, cross-selling and high service levels.
Our scale across brands and channels continues to support innovation and range
expansion, whilst our mid-premium positioning gives us resilience in softer
market conditions. Continued investment in people, customer relationships and
product capability will remain important to supporting medium-term growth.
In FY26 Q4, we announced that we will begin formalising the collaboration
between VADO and MERLYN to create and offer a range of complete bathroom
ranges that look great, are easier to install and give our customers a
powerful choice when it comes to intentionally lowering their impact on the
environment. This improved service offer will be supported by our investment
in our systems infrastructure that will help deliver these bathrooms in a
simpler and more efficient manner. The project is at an early stage, and we
expect benefits to start to flow through in the second half of 2027.
Operational excellence
Supporting both portfolio development and organic growth, operational
excellence underpins profitable growth at scale. We continue to improve
service, reduce complexity and drive efficiency across the Group. Targeted
investment in systems infrastructure is improving stock availability, customer
service and operational leverage.
The benefits of scale are increasingly visible in logistics, freight
procurement and inventory management, supporting margin delivery and
resilience. These initiatives remain an important enabler of our strategy and
a clear point of differentiation in fragmented markets.
ESG and people
Alongside commercial and operational progress, our ESG priorities (people,
product, and planet) remains integral to how we operate and grow. We have
delivered a reduction of 65% in our Scope 1 and 2 emissions since 2023 and are
ahead of our 2028 SBTi carbon reduction target for Scopes 1 and 2. This has
been achieved through a wide range of emissions reduction projects and
transitioning the Group away from tiles to less carbon-intensive alternative
products. We will reset our science-based targets to ensure they remain
robust, relevant and aligned with the Group's future footprint.
Our people agenda is a real strength. The Group has seen strong engagement and
recognition through the Great Place to Work programme, achieving accreditation
in our major regions and reflecting the common culture that is being embedded
across our businesses. During the year, we completed the Group wide rollout of
our Purpose and Keys, reinforcing the shared behaviours that support
collaboration, accountability and performance across the Group.
Maintaining high standards of governance and transparency remains a priority
for the Board and Executive team. We were pleased to receive Best Employment
Engagement Strategy from the Corp Comms Awards and Best Annual Report from the
Investor Relations Society, recognising the quality of last year's Annual
Report and our commitment to clear, balanced, high-quality reporting for all
stakeholders.
Farewell
On behalf of the Board and the wider Norcros team, I would like to thank James
Eyre, our Chief Financial Officer, who, as previously announced, will be
leaving the business after 12 years of service. I have known and worked
closely with James throughout that time, particularly since I stepped into the
CEO role three years ago. He has made a significant and valued contribution to
Norcros, initially leading our acquisition strategy before becoming CFO. His
dedication and leadership will leave a lasting mark, and he has played an
important role in shaping Norcros into the market-leading bathroom products
business it is today. We wish James and his family well for the future.
The search process for James's successor has commenced. Andy Hamer, currently
UK and Ireland Finance Director and previously Group Financial Controller,
will take on the additional non-Board role of interim CFO until this process
has been successfully concluded and we will update the market on progress in
due course.
Outlook
Trading performance through the first two months of the year reflects
continued market share gains, supported by the strength of our brands, service
levels and scale benefits across the Group.
Group revenue in the two months to the end of May 2026 was 3.1% ahead of the
prior year on a constant currency like for like basis, adjusting for Johnson
Tiles SA and the acquisition of Fibo. Market conditions are likely to remain
subdued, with the pace of any recovery in the new build sector still unclear,
however, the RMI sector is currently more resilient and the Board's
expectations for FY27 remain unchanged.
Whilst market conditions remain uncertain and the pace of any recovery in new
build remains unclear, the RMI sector remains more resilient. Our scale,
market positioning, and strong balance sheet leave us well placed to manage
short-term volatility whilst continuing to execute our growth strategy.
A business built to grow
Our strategy is clear, focused, and built on four pillars: portfolio
development, organic growth, operational excellence and ESG. Together, these
strengths give Norcros resilience and the ability to keep taking share through
the quality of our brands, operational depth and well-invested inventory. As a
result, the Group is well positioned to continue growing, strengthening its
portfolio and delivering sustainable long-term value for all stakeholders.
Continuing business performance
2026 2025*
£m £m
Revenue 393.4 355.8
Operating profit 22.2 9.6
IAS 19R administrative expenses 2.8 1.8
Acquisition and disposal related costs 13.1 25.4
Exceptional operating items 9.9 7.7
Underlying operating profit 48.0 44.5
2026 2025*
£m £m
Revenue - Europe 291.6 256.4
Revenue - South Africa 101.8 99.4
Revenue - Group 393.4 355.8
Underlying operating profit - Europe 44.4 39.8
Underlying operating profit - South Africa 3.6 4.7
Underlying operating profit - Group 48.0 44.5
Underlying operating profit margin - Europe 15.2% 15.5%
Underlying operating profit margin - South Africa 3.5% 4.7%
Underlying operating profit margin - Group 12.2% 12.5%
2026** 2025**
£m £m
Underlying operating profit 46.0 43.2
Depreciation and loss on disposal of right-of-use assets 5.8 5.2
Lease costs (7.8) (6.8)
Depreciation and underlying amortisation (owned assets) 5.5 4.8
Underlying EBITDA (pre-IFRS 16) 49.5 46.4
Net working capital movement (1.1) (14.1)
Depreciation of right-of-use assets 5.6 5.2
Operating profit impact of IFRS 16 2.0 1.6
IFRS 2 charge 1.5 0.3
Settlement of share options 0.1 (0.5)
Underlying operating cash flow 57.6 38.9
Underlying operating cash conversion 116% 84%
2026 2025*
Basic underlying earnings per share 36.3p 33.6p
Diluted underlying earnings per share 35.8p 33.4p
* The prior period comparatives have been restated where required to reflect
discontinued operations. Please see note 8 for details of the discontinued
operation results.
** Includes continuing and discontinued operations. Johnson Tiles SA is
presented as a discontinued operation, but its assets and liabilities are not
held for sale, and accordingly the related cash flows are presented in the
above underlying operating cash flow reconciliation. Accordingly, these profit
measures may differ to those seen in the financial statements which exclude
discontinued operations.
Business review - Europe
Strong underlying operating profit performance
Our core European business (previously called UK&I) delivered strong
growth in revenue, market share and profit. The acquisition of Fibo in Norway,
combined with our focus on resilient, brand-conscious mid-premium segments,
enabled the business to outperform underlying market and sector weakness, and
deliver another exceptional set of results.
The wider European business (including Fibo) delivered a strong and resilient
performance in FY26, demonstrating the strength of the Group's operating model
and market-leading brands in the mid-premium segment despite continued
softness in new housebuilding and a challenging consumer backdrop. It is worth
noting that while we have a strong presence in the housebuilding sector, new
build only accounts for c. 20% of market demand and our overall revenue.
Reported revenue of £291.6m (2025: £256.4m) was 13.7% higher year on year,
reflecting market share gains and the acquisition of Fibo in October 2025. On
a like-for-like basis, revenue increased by 0.7%, continuing to outperform the
underlying market.
Growth was driven by market share gains in both the new build and repair,
maintenance and improvement (RMI) sectors, supported by product, cross-selling
and strong customer service across the Group's brands. Underlying operating
profit in Europe increased to £44.4m, reflecting strong performances across
the business and the contribution from the acquisition of Fibo in the period
of £3.3m.
Operating margin reduced slightly to 15.2% (2025: 15.5%), reflecting the
mid-year acquisition of Fibo. Fibo currently operates slightly below targeted
group operating margins. That said, we are confident of delivering meaningful
progress in the years ahead as the team and this well-invested business move
beyond the acquisition and integration phase and focus on profitable growth.
For all of our businesses, continued discipline in working capital, inventory
and forecast accuracy supported service resilience and cash performance.
Operating cash conversion was ahead of the prior year as inventory investment
returned to more normal levels.
The RMI segment remained the largest and most resilient part of the market.
Retail and e-commerce channels performed well, offsetting continued weakness
in new build activity, where planning delays, cost pressures and weak demand
resulted in lower levels of housebuilding than initially expected. There
remains a significant shortage of homes in the UK and Ireland, and our
relationships with local and national housebuilders remain strong, with
further market share gains recorded during the year.
Our four Group strategic pillars - portfolio development, organic growth,
operational excellence and ESG - continue to drive collective focus and
meaningful progress, with underlying operating margins for the European
(previously UK&I) LFL businesses increasing from 15.5% to 15.9%.
Portfolio development
Following its acquisition in October 2025, Fibo has delivered a solid
performance in line with expectations, reflecting continued strength in
premium wall panel systems. Underlying operating profit was supported by an
excellent operational performance and disciplined margin management. Fibo
broadens the Group's European presence beyond the UK and Ireland and provides
a platform for our wider growth ambitions across the rest of Europe.
Organic growth
Organic growth of 0.7% remained ahead of the market, driven by market share
gains as we continue to cross-sell across our brands, leverage our robust new
product development programmes and benefit increasingly from our growing
sustainability credentials. The year was marked by clear differentiation
through service, product innovation and vitality, with many of the brands
delivering record performances.
Our cross-selling initiatives delivered strong share growth, particularly for
Grant Westfield, where the initial customer introductions at Wickes, Screwfix
and Topps have since been added to, driving revenue and margin gains. During
the year, we also began to formalise collaboration between VADO and MERLYN,
with a focus on collectively delivering a full and coordinated bathroom
offering. The first steps in this process were demonstrated through a
strategic collaboration at the KBB show in March 2026, and included the launch
of VADO's second complete bathroom offering, Safari.
Our in-house design capabilities continue to support a structured and
productive new product development pipeline, with new product vitality levels
averaging c. 23%. Highlights included Triton's HeatRepeat® technology, which
significantly reduces the energy required in electric showering; the expansion
of Grant Westfield's Naturepanel range; and the relaunch by Croydex of the
Metlex range of innovative, well-designed mirrors and cabinets. Abode launched
six new boiling and filtered water taps at KBB, alongside a new, more
energy-efficient boiler, the Abode PB3X, which includes an industry first
eco-mode setting.
Leveraging our scale, we have a small but focused Group new product
development team working on projects with a three- to five-year horizon. The
team has a strong sustainability brief and is also addressing the increasing
shortage of installers by making our bathrooms easier to fit.
Operational excellence
As a Group, we continue to identify opportunities to leverage our scale more
effectively, both to enhance our service proposition and improve efficiency.
We have a dedicated Group-wide team working closely with carefully selected
external partners to leverage scale, as we have with Group freight, but also
to develop a Group-wide approach to systems infrastructure.
Our decentralised but collaborative model allows us to benefit from scale
whilst retaining segment expertise. Our scale and operational focus have
helped limit disruption to customers through current and recent geopolitical
shocks, as reflected in MERLYN's five-star Trustpilot rating. As we continue
to grow, we expect our collective scale and collaboration to deliver further
efficiency gains.
ESG
Our commitment to our ESG programmes continued through ongoing investment
across our supply chain where we exceeded our target for eco-fuel use in
shipping and the signing of a new UK-wide green energy contract. A particular
highlight was shipping 37% of our freight using eco-fuel, against a target of
20%, which has materially improved our resilience during the current period of
energy market volatility. More detail is included in our standalone
Sustainability Report.
This commitment also supported Triton's increasing engagement with
policymakers and industry stakeholders on water and energy efficiency,
reinforcing its leadership in sustainable showering solutions. Triton also
published a White Paper, "Hot Water Down the Drain", in response to the
Government's Warm Homes Plan.
We achieved Great Place to Work certification in the UK, Ireland and South
Africa. Achieving this during a period of significant change is a testament to
our teams' alignment with our Group-wide Purpose and Keys (values).
Outlook
Whilst the timing of a full recovery in new housebuilding remains uncertain,
we continue to take share as a result of our strong positioning in the
mid-premium RMI segment, long-standing relationships with national and
regional housebuilders, and alignment with evolving energy and water
efficiency regulation. This leaves the European business well positioned to
grow share in the current market and accelerate progress as market conditions
improve.
We see significant growth potential in Europe, where individual markets place
a premium on design, sustainability and service. Norcros has developed the
capability to grow both organically and inorganically and will continue to
apply these strengths across the UK and Ireland and the rest of Europe with
the same discipline and care shown to date.
Business review - South Africa
Self help in challenging market conditions
Our South African business delivered revenue of £101.8m (2025: £99.4m), 0.3%
ahead of the prior year on a constant currency basis, demonstrating resilience
in a challenging macroeconomic environment characterised by subdued consumer
confidence, elevated interest rates and continued weakness in residential
development and large commercial construction. Despite the tough trading
conditions, the proactive decision to cease tile manufacturing and close the
Johnson Tiles business in the first quarter saw strong cash generation.
Revenue growth reflects disciplined execution and targeted market share gains
across the portfolio. Underlying operating profit was £3.6m, with an
underlying operating margin of 3.5%, as inflationary pressures, competitive
pricing and subdued end-market demand continued to weigh on profitability.
TAL, the Group's market-leading tile adhesives and construction products
business, delivered a strong performance, underpinned by resilient demand in
core categories, effective pricing and a continued focus on innovation and
service. Performance benefited from targeted new product launches, growth in
adjacent ranges and reliable product availability, whilst selective investment
in manufacturing efficiency and supply chain capability further strengthened
the business.
Tile Africa delivered a resilient performance relative to the wider market,
recovering from a softer start to the year through self-help operational
initiatives. Retail demand improved in the second half, supported by stronger
trading in bathroom and kitchen categories, enhanced in-store execution and
improved product availability. Commercial demand remained mixed, with delays
to government infrastructure projects and subdued private investment
continuing to weigh on certain regions. Ongoing focus on product mix,
innovation and the rollout of the kitchen store-within-a-store concept
supported differentiation and customer engagement.
House of Plumbing delivered a weaker performance, reflecting its higher
exposure to residential development and large commercial new-build markets,
which remained subdued throughout the year. Performance was further affected
by heightened price competition and softer activity across trade channels.
Management remained focused on working capital discipline, cost control and
expanding imported product ranges to support margins and the customer
proposition, whilst export activity into neighbouring Southern African markets
remained modest.
After the year end, the Group announced its intention to commence a process to
evaluate options to sell the remaining South African business. Norcros South
Africa has been an important part of the Group since 1954 and has made a
positive contribution over many years. This step is intended to sharpen the
Group's focus on the UK and European bathroom markets, whilst ensuring the
South African business is well positioned for long-term growth under ownership
with a primary focus on Southern Africa.
Norcros South Africa is a well-managed, high-quality business, and our
priority is to identify the right long-term home for the business, its people
and its customers. Throughout the process, which, if successful, is expected
to take 12 to 18 months, the Group will remain focused on business as usual,
continuing to invest in the South African operations, support customers
without disruption and work closely with the local leadership team.
Portfolio development
During the year, the Group completed the closure of the Johnson Tiles
manufacturing operation in South Africa following prolonged market oversupply,
sustained pricing pressure and underutilisation of capacity. The closure has
been managed effectively by the local leadership team and remains on plan. The
cash cost of the closure is expected to be neutral or better, supported by the
orderly clearance of remaining inventory and the decommissioning and sale of
plant and equipment.
As a result, Norcros South Africa is now a more asset-light and attractive
business, well positioned to build on its strong market positions.
Operational excellence
Following the closure of the tile plant, the Group is relocating the Tile
Africa distribution centre from leased premises to the former plant site,
which it owns. This, together with continued investment in supply chain
systems, is expected to improve efficiency and strengthen the overall customer
service proposition.
ESG
Sustainability remains an important operational and strategic priority for the
South African businesses. Progress continued during the year in reducing
exposure to grid energy through solar installations, with generation capacity
now in place across the majority of Tile Africa and House of Plumbing stores.
These initiatives are helping to reduce energy costs whilst supporting the
Group's broader environmental objectives. Further action has also been taken
to improve waste management, recycling and water efficiency.
Outlook
Whilst market conditions remain challenging, the South African operations are
well managed, operationally resilient and competitively positioned. The focus
remains on disciplined execution, protecting profitability and ensuring the
businesses remain well placed to take share as opportunities arise.
The Group will take a disciplined approach when evaluating strategic options,
with clear guardrails in place to minimise disruption and maintain operational
focus throughout the process.
Chief Financial Officer's Review
Profit growth; excellent cash conversion; strong balance sheet
2026 2025*
£m £m
Revenue 393.4 355.8
Underlying operating profit 48.0 44.5
IAS 19R administrative expenses (2.8) (1.8)
Acquisition and disposal-related costs (13.1) (25.4)
Exceptional operating items (9.9) (7.7)
Operating profit 22.2 9.6
Net finance costs (7.3) (6.3)
Profit before taxation 14.9 3.3
Taxation (4.7) 1.1
Profit for the year from continuing operations 10.2 4.4
* The prior period comparatives have been restated where required to reflect
discontinued operations
Revenue
Group revenue at £393.4m (2025: £355.8m) increased by 0.6% on a constant
currency like-for-like basis after adjusting from 53 to 52 weeks and for the
acquisition of Fibo in October 2025, and closure of Johnson Tiles SA
manufacturing in June 2025. Reported revenue increased by 10.6%.
Operating profit
Underlying operating profit increased by 7.9% to £48.0m (2025: £44.5m), and
operating profit increased to £22.2m (2025: £9.6m). Our European businesses
delivered a strong performance with an underlying operating profit of £44.4m
(2025: £39.8m). Our South African businesses recorded an underlying operating
profit of £3.6m (2025: £4.7m). Group underlying operating profit margin was
12.2% (2025: 12.5%).
Johnson Tiles South Africa
Johnson Tiles South Africa ceased manufacturing in June 2025 and accordingly
has been classified as a Discontinued Operation for the year. This means the
results of the division have been excluded from continuing operations within
the Consolidated Income Statement, and the entirety of the result has been
presented in a separate "loss for the period from discontinued operations".
Please see note 31 for further details. Results remain in the balance sheet
and cash flow as the division was not held for sale.
Acquisition and disposal related costs
Acquisition and disposal-related costs of £13.1m (2025: £25.4m) have been
recognised in the year, with £3.9m relating to Fibo acquisition costs and
£1.4m of Fibo deferred remuneration. In line with previous years, we also
recognised £7.8m of acquired intangible asset amortisation. In the prior
year, the costs largely related to the non-cash loss on disposal of Johnson
Tiles UK. Total cash costs of £9.4m were recognised relating to exceptional
items and acquisition and disposal related costs; these predominantly related
to the Fibo acquisition, cash costs associated with the discontinuation of
Johnson Tiles SA, and various other project costs.
IAS19 administrative costs
These costs represent the costs incurred by the Trustee of administering the
UK defined benefit pension scheme and are reflected in the Income Statement
under IAS 19R. Costs of £2.8m are higher than the prior year (2025: £1.8m)
mainly as a result of additional work relating to Guaranteed Minimum Pensions
equalisation.
Exceptional operating items
Exceptional costs of £9.9m (2025: £7.7m) have been recognised in the year.
2026 2025
£m £m
Restructuring costs 1.9 4.6
Investment property costs 0.2 -
Costs in relation to new Enterprise Resource Planning Systems 1.0 2.0
Impairment 7.2 -
Legal case (0.4) 1.1
9.9 7.7
The £1.9m (2025: £4.6m) exceptional restructuring costs predominantly relate
to a restructuring programme implemented to combine our MERLYN and VADO
businesses to create a complete bathroom products business. In the prior year
it related to the consolidation of warehousing and distribution at Grant
Westfield and the move to a single site in VADO. A total of £1.0m of costs
were incurred in relation to the implementation of new SaaS Enterprise
Resource Planning systems, predominantly at MERLYN and Tile Africa.
Exceptional legal case credits relate to the successful conclusion of a now
closed legal case.
The Group reviews all cash-generating units to determine whether any of the
assets related to our operations are impaired. These reviews are performed by
comparing the estimated future cash flows generated by the divisions with the
carrying value of the assets generating those cash flows. As a result of these
reviews, the impairment charge of £7.2m mostly relates to goodwill impairment
of the Tile Africa and House of Plumbing brands.
Discontinued operations, relating to Johnson Tiles SA, include exceptional
items of £11.1m which consist of c. £10.2m of non-cash items predominantly
relating to the write-off of inventory and fixed assets, and c. net £0.9m of
cash costs relating to redundancy costs offset by proceeds from the sale of
fixed assets.
Finance costs
Finance costs for the year of £7.7m largely relate to interest payable on
bank borrowing and leases. The increase compared to £7.1m in 2025 is mainly
due to increased borrowings following the acquisition of Fibo, as well as
costs associated with the banking refinance in December 2025.
The Group has recognised a £0.4m IAS 19R interest credit in respect of the UK
defined benefit pension scheme surplus (2025: credit of £0.8m) due to the
accounting surplus throughout the year.
Underlying profit before tax
Underlying profit before tax increased to £40.9m in the year (2025: £37.8m).
Taxation
The tax charge for the year of £1.1m (2025: credit of £1.5m) was impacted by
improved profitability and the acquisition of Fibo.
The Group's average tax rate was (97.1%) (2025: (45.0%)). This movement to the
prior year, which was impacted by the taxable losses arising from the sale of
Johnson Tiles UK, is due to the taxable losses arising in South Africa
relating to the discontinuation of Johnson Tiles SA in the period. The
underlying effective tax rate in the year was 21.1% (2025: 20.4%). The
standard rate of corporation tax in the UK is 25% (2025: 25%), in South Africa
27% (2025: 27%), in Norway 22% (2025: 22%) and in Ireland 12.5% (2025: 12.5%).
Dividends
Diluted underlying EPS has increased in the year to 35.8p (2025: 33.4p) and
the Board recommends a final dividend of 7.6p per share (2025: 6.9p). This,
combined with the interim dividend of 3.7p per share (2025: 3.5p), results in
a total dividend of 11.3p per share (2025: 10.4p). The total dividend is
equivalent to a dividend cover of 3.2 times, broadly consistent with the prior
year. The cash cost of the total dividend is £10.1m.
This final dividend, if approved at the Annual General Meeting, will be
payable on 3 August 2026 to shareholders on the register on 26 June 2026. The
shares will be quoted ex-dividend on 25 June 2026. Norcros plc operates a
Dividend Reinvestment Plan (DRIP). If a shareholder wishes to use the DRIP,
the latest date to elect for this in respect of this final dividend is 10 July
2026.
Cash flow and net debt
Underlying operating cash flow was £18.7m higher than in the prior year at
£57.6m (2025: £38.9m).
2026 2025
£m £m
Underlying operating profit(1) 46.0 43.2
Depreciation and underlying amortisation (owned assets)(2) 5.5 4.8
Depreciation and loss on disposal of right-of-use assets 5.8 5.2
Lease costs (7.8) (6.8)
Underlying EBITDA (pre-IFRS 16)(1) 49.5 46.4
Net working capital movement (1.1) (14.1)
Depreciation of right-of-use assets 5.6 5.2
Operating profit impact of IFRS 16 2.0 1.6
IFRS 2 charge 1.5 0.3
Settlement of share options 0.1 (0.5)
Underlying operating cash flow 57.6 38.9
Underlying operating cash conversion(3) 116% 84%
(1) Includes continuing and discontinued operations. Johnson Tiles SA is
presented as a discontinued operation but its assets and liabilities are not
held for sale, and accordingly the related cash flows are presented in the
above underlying operating cash flow reconciliation. Accordingly, these profit
measures may differ to those seen in the financial statements which exclude
discontinued operations.
(2) Includes depreciation relating to Johnson Tiles South Africa.
(3) Represents underlying operating cash flow as a percentage of underlying
EBITDA (pre-IFRS 16).
The main drivers of the increase in underlying operating cash flow was an
improvement in underlying operating profit and significantly reduced working
capital outflow following investment in inventories in the prior period.
Underlying operating cash conversion in the year was 116% of underlying EBITDA
(2025: 84%).
The Group ended the year with net debt of £65.8m (2025: net debt of £36.8m)
on a pre-IFRS 16 basis. This represents a leverage of 1.2 times underlying
EBITDA (2025: 0.8 times). Net debt inclusive of IFRS 16 lease liabilities was
£96.7m
(2025: £57.4m).
Balance sheet
The Group's balance sheet is summarised below.
2026 2025
£m £m
Property, plant and equipment 22.8 21.8
Asset held for sale - 3.7
Right-of-use assets 26.9 16.7
Goodwill and intangible assets 187.8 153.5
Deferred tax (14.4) (8.6)
Net current assets excluding cash and borrowings 73.0 72.7
Pension scheme surplus 0.4 6.8
Lease liabilities (30.9) (20.6)
Other non-current assets and liabilities (1.7) (1.3)
Net debt (65.8) (36.8)
Net assets 198.1 207.9
Underlying return on capital employed 20.0% 17.3%
Total net assets decreased by £9.8m to £198.1m (2025: £207.9m). Net current
assets (excluding cash and borrowings) increased by £0.3m largely reflecting
increased debtors at year-end. Goodwill and intangibles increased due to
£33.2m of intangibles arising on acquisition and £2.3m of goodwill, both
relating to the Fibo acquisition. Net debt increased due to the drawdown of
borrowings to fund the acquisition.
Property, plant and equipment increased by £1.0m to £22.8m in the year
largely due to £3.8m of assets acquired with Fibo, offset by net £3.4m of
disposals from the discontinuation of Johnson Tiles SA. Other additions and
the annual depreciation charge make up the remaining difference. The
depreciation charge was £5.0m (2025: £4.8m) including Johnson Tiles SA.
Right-of-use assets increased by £10.2m to £26.9m (2025: £16.7m), primarily
reflecting Fibo's right-of-use assets acquired of £6.9m and net additions of
£1.6m, offset by right-of-use depreciation of £5.6m (2025: £5.2m). Exchange
gains of £0.8m were recognised in relation to right-of-use assets (2025:
£nil).
The net deferred tax liability increased by £5.8m to a liability of £14.4m
(2025: liability of £8.6m). The increase is primarily the result of the
deferred tax liability arising on the intangibles created upon acquisition of
Fibo, offset by actuarial losses on the pension scheme.
The underlying return on capital employed has increased to 20.0% (2025: 17.3%)
following improved performance and portfolio improvements, demonstrating
further momentum and achievement of our strategic target of 20.0%. This has
been driven by increased profitability alongside our portfolio development
initiatives including the closure of our tile manufacturing operations and the
acquisition of Fibo.
Pension schemes
On an IAS 19R accounting basis, the gross defined benefit pension scheme
valuation of the UK scheme showed a surplus of £0.4m compared to a surplus of
£6.8m last year. The present value of scheme liabilities decreased by £5.1m
as a result of benefit payments made and the discount rate saw a slight
increase to 5.7% (31 March 2025: 5.6%). This was partially offset by mortality
assumptions which were updated in year to reflect prolonged life expectancies
and led to a small increase in liabilities. The value of scheme assets
decreased by £11.5m largely due to benefit payments made in the year.
In the prior year, the Group reached agreement with the Trustee on the 31
March 2024 triennial actuarial valuation for the UK defined benefit scheme.
The actuarial deficit at 31 March 2024 was £11.7m (2021: £35.8m). The
current deficit repair contributions were reconfirmed at £3.8m per annum from
1 April 2022 to June 2027 (increasing with CPI, capped at 5%, each year). It
was agreed that there would be no further deficit repair contributions after
June 2027.
The agreement also included a mechanism where deficit repair contributions
would be diverted into an escrow account when the scheme is deemed to be in
surplus on a technical provisions basis. In addition, the Group will
contribute up to a maximum of £1.0m per annum to cover pension administrative
expenses should asset investment performance not be sufficient to cover the
ongoing management fees. The 2027 triennial actuarial valuation is expected to
take place during the year ending 31 March 2028.
The Group's cash contributions to its defined contribution pension scheme were
£3.9m (2025: £3.8m).
Banking, funding and liquidity
Following a refinancing in December 2025, the Group increased its committed
banking facilities to £150m (plus a £75m uncommitted accordion) with a
maturity date of the facility of December 2029 with a further one-year
extension available. Net bank debt increased to £65.8m in the year (2025:
£36.8m) following drawdown to fund the acquisition of Fibo; positive cash
generation continues to reduce the borrowings of the Group.
Capital allocation framework
The Group has a capital allocation framework of 1) Organic investment; 2)
Ordinary dividends; 3) Complementary acquisitions; and 4) Supplementary
distributions. Alongside this framework are investment guardrails of
maintaining leverage below 2.0x underlying EBITDA and dividend cover of circa
3.0x in addition to the strategic objectives of cash conversion above 90% and
a ROCE target of 20% in the medium term.
Norcros South Africa
As announced on 12 May 2026, the Board has commenced a process to evaluate
sale options for the Group's South African operations, including a potential
divestment.
Norcros South Africa (Norcros SA) is a distinct operating segment within the
Group, comprising TAL, Tile Africa and House of Plumbing. The business has
continued to trade as expected during the year and remains well managed by an
experienced team, with well-established market positions in its respective
sectors.
At the balance sheet date, Norcros SA had total net assets of £37.5 m
(excluding net cash). For the year, the business generated revenue of £101.8
m and operating profit of £6.3 m on a pre-central cost basis. The segment
remains cash generative, with continued focus on working capital discipline
and operational efficiency.
The decision to explore sale options reflects the Group's broader objective to
focus on a more capital-light, cash-generative portfolio centred on
mid-premium bathroom markets in the UK and Europe. Recent portfolio actions,
including the exit from Johnson Tiles South Africa, the sale of Johnson Tiles
UK and the acquisition of Fibo, are consistent with this strategic direction.
There is no impact on the Group's reported results or on its financial
position for the current year as a result of the announcement.
Future success
Finally, this will be my last Annual Report as Chief Financial Officer at
Norcros and I will be stepping down from the Board at the end of June. Norcros
is a great business, and it has been a privilege to work with our dedicated
teams to grow into the largest branded bathroom products business in the UK
and Ireland. The Group is in a strong financial position with a tremendous
future ahead. I wish all involved every success.
Principal risks and uncertainties
Risk management remains a priority for the Group to help sustain the success
of the business in the future. There is a range of potential risks and
uncertainties which could have a material impact on the Group's performance.
The objective of our risk management framework is to support the business in
meeting its strategic and operational objectives through the identification,
monitoring and mitigation of risks within clearly defined risk appetite levels
for each risk category.
The Board has carried out a robust assessment of the principal risks and taken
them into consideration when assessing the long-term viability of the Company.
The principal risks fall within the categories listed below, and full details
of the principal risks including descriptions and mitigating actions are
presented in the Annual Report and Accounts. They do not comprise all the
risks that the Group may face and are not listed in any order of priority.
· Strategic risks including the risks associated with future
acquisitions.
· Environmental, Social and Governance (ESG) risks include the risks
associated with stakeholder requirements and reporting requirements.
· People risks include the risks associated with staff retention and
recruitment. The Board's paramount concern as regards our people is to keep
them safe.
· Commercial risks include risks associated with market conditions,
the loss of key customers and competition.
· Operational risks include the risks associated with the reliance on
production facilities and the loss of a key supplier.
· Financial risks include the risks associated with exchange rates,
maintaining a suitable level of funding and liquidity and those associated
with managing the defined benefit pension scheme.
· Information technology and cyber security risks include the risk of
reliance on automated processes and systems and the increasing sophistication
of cyber-crime.
Please see the full principal risks section within the Annual Report and
Accounts for further details. This report is presented in the context of
continued geopolitical and economic uncertainty. Rather than identifying this
as a standalone principal risk, its potential impact is reflected in the
relevant individual principal risks, including market conditions and the
potential loss of key suppliers. The increased frequency of such events over
the last ten years has heightened our focus in this area, and we have
responded effectively to a number of them.
The Board has also continued its focus on developing the risk management
framework, ensuring internal controls remain effective and meeting the
requirements of Provision 29 of the 2024 UK Corporate Governance Code.
Responsibility statement
Each of the Directors, whose names and functions are listed below, confirms
that, to the best of their knowledge:
· The consolidated financial statements, prepared in accordance with
the applicable United Kingdom law and in conformity with UK-adopted
international accounting standards, give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Group and the
undertakings included in the consolidation taken as a whole;
· The business review includes a fair review of the development and
performance of the business and the position of the Group and the undertakings
included in the consolidation taken as a whole; and
· There have been no significant individual-related party
transactions during the year.
Directors: Steve Good (Board Chair and Non-Executive Director), Thomas
Willcocks (Chief Executive Officer), James Eyre (Chief Financial Officer),
Alison Littley (Non-Executive Director), Stefan Allanson (Non-Executive
Director) and Rebecca DeNiro (Non-Executive Director).
Thomas Willcocks
Chief Executive Officer
James Eyre
Chief Financial Officer
Consolidated income statement
53 weeks ended 5 April 2026
Notes 2026 2025*
£m £m
Continuing operations
Revenue 2 393.4 355.8
Underlying operating profit 48.0 44.5
IAS 19R administrative expenses (2.8) (1.8)
Acquisition and disposal related costs 3 (13.1) (25.4)
Exceptional operating items 3 (9.9) (7.7)
Operating profit 22.2 9.6
Finance costs 4 (7.7) (7.1)
IAS 19R finance credit 0.4 0.8
Profit before taxation 14.9 3.3
Taxation (4.7) 1.1
Profit for the year from continuing operations 10.2 4.4
Loss for the year from discontinued operations (9.9) (0.9)
Profit for the year attributable to equity holders of the Company 0.3 3.5
Earnings per share attributable to equity holders of the Company
Basic earnings per share:
From continuing operations 6 11.4p 4.9p
From discontinued operations 6 (11.1p) (1.0p)
From profit for the year 6 0.3p 3.9p
Diluted earnings per share:
From continuing operations 6 11.3p 4.9p
From discontinued operations 6 (11.0p) (1.0p)
From profit for the year 6 0.3p 3.9p
Weighted average number of shares for basic earnings per share (m) 89.0 89.5
Alternative performance measures
Underlying profit before taxation (£m) 5 40.9 37.8
Underlying earnings (£m) 5 32.3 30.1
Basic underlying earnings per share 6 36.3p 33.6p
Diluted underlying earnings per share 6 35.8p 33.4p
* The prior period comparatives have been restated where required to reflect
discontinued operations.
Consolidated statement of comprehensive income
53 weeks ended 5 April 2026
2026 2025
£m £m
Profit for the year 0.3 3.5
Other comprehensive income and expense:
Items that will not subsequently be reclassified to the Income Statement
Actuarial losses on retirement benefit obligations (7.1) (8.9)
Items that may be subsequently reclassified to the Income Statement
Cash flow hedges - fair value gain in year 1.6 0.1
Foreign currency translation of foreign operations 5.1 0.3
Other comprehensive expense for the year (0.4) (8.5)
Total comprehensive result for the year attributable to equity holders (0.1) (5.0)
of the Company
Items in the statement are disclosed net of tax.
Consolidated balance sheet
At 5 April 2026
2026 2025
£m £m
Non-current assets
Goodwill 103.2 107.4
Intangible assets 84.6 46.1
Property, plant and equipment 22.8 21.8
Deferred tax asset 3.8 1.4
Pension scheme asset 0.4 6.8
Right-of-use assets 26.9 16.7
241.7 200.2
Current assets
Inventories 87.5 88.2
Trade and other receivables 79.3 71.7
Current tax assets 3.1 1.5
Cash and cash equivalents 32.2 22.7
Derivative financial instruments 0.8 -
Asset held for sale - 3.7
202.9 187.8
Current liabilities
Trade and other payables (92.6) (86.7)
Lease liabilities (8.2) (6.5)
Current tax liabilities (2.9) (1.0)
Derivative financial instruments - (0.5)
Provisions (2.2) (0.5)
(105.9) (95.2)
Net current assets 97.0 92.6
Total assets less current liabilities 338.7 292.8
Non-current liabilities
Financial liabilities - borrowings (98.0) (59.5)
Lease liabilities (22.7) (14.1)
Deferred tax liabilities (18.2) (10.0)
Other non-current liabilities (0.5) (0.2)
Provisions (1.2) (1.1)
(140.6) (84.9)
Net assets 198.1 207.9
Financed by:
Share capital 9.0 8.9
Share premium 47.6 47.6
Retained earnings and other reserves 141.5 151.4
Total equity 198.1 207.9
Consolidated cash flow statement
53 weeks ended 5 April 2026
Note 2026 2025
£m £m
Cash generated from operations 7 42.9 28.3
Income taxes paid (2.9) (3.4)
Interest paid (7.7) (6.4)
Net cash generated from operating activities 32.3 18.5
Cash flows from investing activities
Proceeds from sale of property 4.6 3.5
Purchase of property, plant and equipment and intangible assets (6.8) (6.9)
Acquisition of subsidiary undertakings net of cash acquired (1.9) -
Net cash used in investing activities (4.1) (3.4)
Cash flows from financing activities
Purchase of treasury shares (1.7) (0.1)
Costs of raising debt finance (1.1) -
Principal element of lease payments (6.0) (5.1)
Drawdown of borrowings 59.0 21.0
Repayment of borrowings (20.0) (30.0)
Repayment of subsidiary borrowings (39.8) -
Dividends paid to the Company's shareholders (9.5) (9.2)
Net cash used in financing activities (19.1) (23.4)
Net increase/(decrease) in cash and cash equivalents 9.1 (8.3)
Cash and cash equivalents at the beginning of the year 22.7 30.8
Exchange movements on cash and cash equivalents 0.4 0.2
Cash and cash equivalents at the end of the year 32.2 22.7
Consolidated statement of changes in equity
53 weeks ended 5 April 2026
Ordinary Share Treasury Hedging Translation Retained Total
share premium reserve reserve reserve earnings equity
capital £m £m £m £m £m £m
£m
At 1 April 2024 8.9 47.6 0.2 (0.4) (26.4) 192.5 222.4
Comprehensive income:
Profit for the year - - - - - 3.5 3.5
Other comprehensive expense:
Actuarial loss on retirement benefit obligations - - - - - (8.9) (8.9)
Fair value gain on cash flow hedges - - - 0.1 - - 0.1
Foreign currency translation adjustments - - - - 0.3 - 0.3
Total other comprehensive expense for the year - - - 0.1 0.3 (8.9) (8.5)
Transactions with owners:
Purchase of treasury shares - - (0.1) - - - (0.1)
Dividends paid - - - - - (9.2) (9.2)
Settlement of share option schemes - - 0.6 - - (1.1) (0.5)
Value of employee services - - - - - 0.3 0.3
At 30 March 2025 8.9 47.6 0.7 (0.3) (26.1) 177.1 207.9
Comprehensive income:
Profit for the year - - - - - 0.3 0.3
Other comprehensive expense:
Actuarial loss on retirement benefit obligations - - - - - (7.1) (7.1)
Fair value gain on cash flow hedges - - - 1.6 - - 1.6
Foreign currency translation adjustments - - - - 5.1 - 5.1
Total other comprehensive expense for the year - - - 1.6 5.1 (7.1) (0.4)
Transactions with owners:
Shares issued 0.1 - - - - - 0.1
Purchase of treasury shares - - (1.7) - - - (1.7)
Dividends paid - - - - - (9.5) (9.5)
Settlement of share option schemes - - 0.5 - - (0.4) 0.1
Value of employee services - - - - - 1.3 1.3
At 5 April 2026 9.0 47.6 (0.5) 1.3 (21.0) 161.7 198.1
Notes to the preliminary statement
53 weeks ended 5 April 2026
1. Basis of preparation
Norcros plc (the Company), and its subsidiaries (together the Group), is a
market-leading designer and supplier of high-quality bathroom and kitchen
products in the UK, Europe and South African markets.
The Company is incorporated in the UK as a public company limited by shares
and registered in England and Wales. The shares of the Company are listed on
the premium segment of the London Stock Exchange market of listed securities.
The address of its registered office is: Ladyfield House, Station Road,
Wilmslow SK9 1BU, UK. The Company is domiciled in the UK.
The financial information presented in this preliminary statement is extracted
from, and is consistent with, the Group's audited financial statements for the
53 weeks ended 5 April 2026. The financial information set out above does not
constitute the Company's statutory financial statements for the periods ended
5 April 2026 or 30 March 2025 but is derived from those financial statements.
Statutory financial statements for 2026 will be delivered following the
Company's annual general meeting. The auditors have reported on those
financial statements; their report was unqualified and did not contain a
statement under section 498(2) or (3) of the Companies Act 2006.
The Group's results have been prepared in accordance with UK-adopted
International Accounting Standards and with the accounting policies set out in
the Annual Report and Accounts consistently applied to all periods.
Going concern
In adopting the going concern basis for preparing the financial statements,
the Directors have considered the Group's business activities, and the
principal risks and uncertainties, including current macroeconomic factors, in
the context of the current operating environment. The Group, in acknowledging
its TCFD requirements, has also considered climate risks in the financial
statements.
A going concern financial assessment was developed on a bottom-up basis by
taking the output of the annual budgeting process built up by individual
businesses and then subjected to review and challenge by the Board. The
financial model was then stress tested by modelling the most extreme but
plausible scenario, that being a global pandemic similar in nature to
COVID-19. This has been based on the actual impact of the COVID-19 pandemic on
the Group, which, at its peak, saw a revenue reduction of 25% on the prior
year over a six-month period. The scenario also incorporates management
actions the Group has at its disposal, including a number of cash conservation
and cost reduction measures including capital expenditure reductions, dividend
decreases and restructuring activities.
The Group continues to exhibit sufficient and prudent levels of liquidity
headroom against our key banking financial covenants, being leverage and
interest cover, during the 12-month period under assessment. During the year,
the Group extended its banking facility which now expires in December 2029
with the option to extend a further year to 2030. Reverse stress testing has
also been applied to the financial model, which represents a further decline
in sales compared with the reasonable worst case. Such a scenario, and the
sequence of events that could lead to it, is considered to be implausible and
remote.
As a result of this detailed assessment, the Board has concluded that the
Company is able to meet its obligations when they fall due for a period of at
least 12 months from the date of this report. For this reason, the Company
continues to adopt the going concern basis for preparing the Group financial
statements. In forming this view, the Board has also concluded that no
material uncertainty exists in its use of the going concern basis of
preparation.
2. Segmental reporting
53 weeks ended 5 April 2026*
Europe South Group
£m Africa £m
£m
Revenue 291.6 101.8 393.4
Underlying operating profit 44.4 3.6 48.0
IAS 19R administrative expenses (2.0) (0.8) (2.8)
Acquisition and disposal related costs (11.3) (1.8) (13.1)
Exceptional operating items (4.0) (5.9) (9.9)
Operating profit 27.1 (4.9) 22.2
Finance costs (net) (7.3)
Profit before taxation 14.9
Taxation (4.7)
Profit for the year from continuing operations 10.2
Net debt excluding lease liabilities (65.8)
Segmental assets 365.0 79.6 444.6
Segmental liabilities (214.8) (31.7) (246.5)
Additions to goodwill 2.3 - 2.3
Additions to tangible, intangibles and right-of-use assets 7.1 4.6 11.7
Depreciation and amortisation 14.7 4.0 18.7
52 weeks ended 30 March 2025*
Europe South Group
£m Africa £m
£m
Revenue 256.4 99.4 355.8
Underlying operating profit 39.8 4.7 44.5
IAS 19R administrative expenses (1.8) - (1.8)
Acquisition and disposal related costs (25.2) (0.2) (25.4)
Exceptional operating items (6.2) (1.5) (7.7)
Operating profit 6.6 3.0 9.6
Finance costs (net) (6.3)
Profit before taxation 3.3
Taxation 1.1
Profit for the year 4.4
Net debt excluding lease liabilities (36.8)
Segmental assets 302.8 85.2 388.0
Segmental liabilities (153.9) (26.2) (180.1)
Additions to tangible, intangibles and right-of-use assets 6.2 4.5 10.7
Depreciation and amortisation 11.5 4.0 15.5
* The prior period Income Statement comparatives have been restated where
required to reflect discontinued operations. The current period Income
Statement already excludes discontinued operations. In both instances, only
the Income Statement has been restated for discontinued operations.
Accordingly, the difference between the depreciation disclosed above and that
presented in the property, plant and equipment and right-of-use asset notes
relates to discontinued operations.
The split of revenue by geographical destination of the customer is below:
2026 2025*
£m £m
UK 235.2 224.1
Africa 102.8 100.5
Rest of Europe 49.6 23.2
Rest of World 5.8 8.0
393.4 355.8
* The prior period comparatives have been restated where required to reflect
discontinued operations.
No one customer had revenue over 10% of total Group revenue (2025: none).
3. Acquisition and disposal related costs and exceptional operating items
An analysis of acquisition and disposal related costs and exceptional
operating items is shown below:
Acquisition and disposal related costs 2026 2025
£m £m
Intangible asset amortisation(1) 7.8 6.5
Advisory fees(2) 3.9 1.1
Johnson Tiles UK loss on disposal and associated property costs(3) - 22.2
Deferred contingent consideration(4) - (3.0)
Deferred remuneration(5) 1.4 (1.4)
13.1 25.4
(1 ) Non-cash amortisation charges in respect of acquired intangible
assets. Note the difference to note 12 (being amortisation on customer
relationships and brand, trade names and patents) relates to existing
intangibles already within Fibo at the point of acquisition.
(2 ) Professional advisory fees incurred in connection with the Group's
business combination activities.
(3 ) On 19 May 2024, the trade and assets of the Johnson Tiles UK
division were sold to Johnson Tiles Ltd, a new company incorporated and run by
the former divisional management team. The sale completed at a consideration
lower than the carrying value of the assets of the business and as a result
the Group incurred a loss on disposal of £22.2m at prior year end.
(4 ) Relates to the release of the deferred contingent consideration
arising on the acquisition of Grant Westfield.
(5) In accordance with IFRS 3, deferred remuneration from acquisition
arrangements has been expensed to the Income Statement as incurred, relating
entirely to the Fibo acquisition. In the prior year, previously held accrued
deferred remuneration was released.
Exceptional operating items 2026 2025
£m £m
Restructuring costs(1) 1.9 4.6
Investment property profit on disposal(2) 0.2 -
Costs in relation to new Enterprise Resource Planning systems(3) 1.0 2.0
Impairment(4) 7.2 -
Legal case(5) (0.4) 1.1
9.9 7.7
(1 ) In the current year, restructuring costs predominantly relate to a
restructuring programme implemented to combine our MERLYN and VADO businesses.
The prior year restructuring costs predominantly related to the consolidation
of warehousing and distribution costs at Grant Westfield.
(2 ) In the year, the Group sold the remaining Johnson Tiles UK site for
£5.5m of which £1.0m is deferred. The site had a book value of £3.7m at the
date of sale, and the profit on disposal had been offset by site remediation,
consultancy and landlord costs.
(3 ) Costs incurred in relation to the implementation of new Enterprise
Resource Planning systems.
(4 ) Impairment arising in the year predominantly relates to the
impairment of goodwill at Tile Africa and House of Plumbing.
(5 ) Costs incurred offset by gains in the year in relation to a legal
case which positively concluded in the year.
4. Finance costs
2026 2025
£m £m
Interest payable on bank borrowings 5.3 5.0
Interest on lease liabilities 1.8 1.7
Amortisation of costs of raising debt finance 0.6 0.4
Finance costs 7.7 7.1
5. Alternative performance measures
The Group makes use of a number of alternative performance measures to assess
business performance and provide additional useful information to
shareholders. Such alternative performance measures should not be viewed as a
replacement of, or superior to, those defined by Generally Accepted Accounting
Principles (GAAP). Definitions of alternative performance measures used by the
Group and, where relevant, reconciliations from GAAP-defined reporting
measures to the Group's alternative performance measures are provided below.
The alternative performance measures used by the Group are:
Measure Definition
Underlying operating profit Operating profit before IAS 19R administrative expenses, acquisition and
disposal related costs and exceptional operating items.
Underlying profit before taxation Profit before taxation before IAS 19R administrative expenses, acquisition and
disposal related costs, exceptional operating items, amortisation of costs of
raising finance, discounting of deferred contingent consideration, discounting
of property lease provisions and finance costs relating to pension schemes.
Underlying taxation Taxation on underlying profit before tax.
Underlying earnings Underlying profit before tax less underlying taxation.
Underlying capital employed Capital employed on a pre-IFRS 16 basis adjusted for business combinations
where relevant to reflect the assets in both the opening and closing capital
employed balances, and the average impact of exchange rate movements.
Underlying operating margin Underlying operating profit expressed as a percentage of revenue.
Underlying return on capital employed (ROCE) Underlying operating profit on a pre-IFRS 16 basis expressed as a percentage
of the average of opening and closing underlying capital employed.
Basic underlying earnings per share Underlying earnings divided by the weighted average number of shares for basic
earnings per share.
Diluted underlying earnings per share Underlying earnings divided by the weighted average number of shares for
diluted earnings per share.
Underlying EBITDA Underlying EBITDA is derived from underlying operating profit before
depreciation and amortisation excluding the impact of IFRS 16 in line with our
banking covenants.
Underlying operating cash flow Cash generated from continuing operations before cash outflows from
exceptional items and acquisition and disposal related costs and pension fund
deficit recovery contributions.
Underlying net debt/cash Underlying net debt/cash is the net of cash, capitalised costs of raising
finance and total borrowings. IFRS 16 lease commitments are not included in
line with our banking covenants.
Pro-forma underlying EBITDA An annualised underlying EBITDA figure used for the purpose of calculating
banking covenant ratios.
Pro-forma leverage Net debt expressed as a ratio of pro-forma underlying EBITDA.
Revenue on a constant currency like for like basis Revenue on a constant currency like-for-like basis is the underlying revenue
growth by comparing sales to the prior period after removing the impact of
exchange rate movements and adjusting for non-comparable items such as
acquisitions, disposals or other portfolio changes.
Underlying profit and underlying earnings per share measures provide
shareholders with additional useful information on the underlying performance
of the Group. This is because these measures are those principally used by the
Directors to assess the performance of the Group and are used as the basis for
calculating the level of the annual bonus and long-term incentives earned by
the Directors. Underlying ROCE is one of the Group's strategic key performance
indicators and is therefore provided so that shareholders can assess the
Group's performance in relation to its strategic targets. Underlying EBITDA
and underlying operating cash flow are also used internally by the Directors
in order to assess the Group's cash generation. The term 'underlying' is not
recognised under IFRS and consequently the Group's definition of underlying
may differ from that used by other companies.
Reconciliations from GAAP-defined reporting measures to the Group's
alternative performance measures
Consolidated Income Statement
(a) Underlying profit before taxation and underlying earnings
2026 2025*
£m £m
Profit before taxation 14.9 3.3
Adjusted for:
- IAS 19R administrative expenses 2.8 1.8
- IAS 19R finance income (0.4) (0.8)
- acquisition and disposal related costs (see note 3) 13.1 25.4
- exceptional operating items (see note 3) 9.9 7.7
- amortisation of costs of raising finance 0.6 0.4
Underlying profit before taxation 40.9 37.8
Taxation attributable to underlying profit before taxation (8.6) (7.7)
Underlying earnings 32.3 30.1
* The prior period comparatives have been restated where required to reflect
discontinued operations.
(b) Underlying operating profit and EBITDA (pre-IFRS 16)
2026* 2025*
£m £m
Operating profit 22.2 9.6
Adjusted for:
- IAS 19R administrative expenses 2.8 1.8
- acquisition and disposal related costs (see note 3) 13.1 25.4
- exceptional operating items (see note 3) 9.9 7.7
Underlying operating profit 48.0 44.5
Adjusted for:
- depreciation and amortisation (owned assets) 5.0 3.9
- depreciation and loss on disposal of leased assets 5.8 5.2
- lease costs (7.8) (6.7)
Underlying EBITDA (pre-IFRS 16) 51.0 46.9
* The prior period comparatives have been restated where required to reflect
discontinued operations. Please note the current and prior year numbers above
differ to the Underlying EBITDA seen in the Chief Financial Officer's review
due to that statement being used for the cash measure Cash Conversion, and
accordingly including Johnson Tiles SA performance.
Consolidated Cash Flow Statement
(a) Underlying operating cash flow
2026 2025
£m £m
Cash generated from operations (see note 7) 42.9 28.3
Adjusted for:
- cash flows from exceptional items and acquisition and disposal related costs 9.4 7.5
(see note 7)
- pension fund deficit recovery contributions 5.3 3.1
Underlying operating cash flow 57.6 38.9
Consolidated Balance Sheet
(a) Underlying capital employed and underlying return on capital employed
2026 2025
£m £m
Net assets 198.1 207.9
Adjusted for:
- pension scheme asset (net of associated tax) (0.3) (5.1)
- right-of-use assets (IFRS 16) (26.9) (16.7)
- lease liabilities (IFRS 16) 30.9 20.6
- cash and cash equivalents (32.2) (22.7)
- financial liabilities - borrowings 98.0 59.5
267.6 243.5
Foreign exchange adjustment (0.2) 1.5
Adjustment for acquisitions and disposals (50.0) (15.3)
Underlying capital employed 217.4 229.7
Average underlying capital employed 230.5 240.6
Underlying operating profit (pre-IFRS 16) 46.0 41.6
Underlying return on capital employed 20.0% 17.3%
6. Earnings per share
Basic EPS is calculated by dividing the profit attributable to shareholders by
the weighted average number of ordinary shares in issue during the year,
excluding those held in the Norcros Employee Benefit Trust.
For diluted EPS, the weighted average number of ordinary shares in issue is
adjusted to assume conversion of all potential dilutive ordinary shares. At 5
April 2026, the potential dilutive ordinary shares amounted to 1,101,720
(2025: 513,488) as calculated in accordance with IAS 33.
The calculation of EPS is based on the following profits and numbers of
shares:
2026 2025*
£m £m
Profit for the year from continuing operations 10.2 4.4
Loss for the year from discontinued operations (9.9) (0.9)
Profit for the year 0.3 3.5
* The prior period comparatives have been restated where required to reflect
discontinued operations.
2026 2025
Number Number
Weighted average number of shares for basic earnings per share 89,012,734 89,497,030
Share options 1,101,720 513,488
Weighted average number of shares for diluted earnings per share 90,114,454 90,010,518
2026 2025*
Basic earnings per share:
From continuing operations 11.4p 4.9p
From discontinued operations (11.1p) (1.0p)
From profit for the year 0.3p 3.9p
Diluted earnings per share:
From continuing operations 11.3p 4.9p
From discontinued operations (11.0p) (1.0p)
From profit for the year 0.3p 3.9p
* The prior period comparatives have been restated where required to reflect
discontinued operations.
Basic and diluted underlying earnings per share
Basic and diluted underlying earnings per share have also been provided which
reflects underlying earnings from continuing operations divided by the
weighted average number of shares set out above.
2026 2025*
£m £m
Underlying earnings (see note 5) 32.3 30.1
2026 2025*
Basic underlying earnings per share 36.3p 33.6p
Diluted underlying earnings per share 35.8p 33.4p
* The prior period comparatives have been restated where required to reflect
discontinued operations.
7. Consolidated cash flow statement
(a) Cash generated from operations
The analysis of cash generated from operations is given below:
2026 2025
£m £m
Profit before taxation from continuing operations 14.9 3.3
Loss before taxation from discontinued operations (13.5) (1.3)
Adjustments for:
- IAS 19R administrative expenses included in the Income Statement 2.8 1.8
- acquisition and disposal related costs included in the Income Statement 13.1 25.4
- exceptional items included in the Income Statement 9.9 7.7
- exceptional items relating to discontinued operations 11.1 -
- finance costs included in the Income Statement 7.7 7.1
- finance costs relating to discontinued operations 0.4 -
- IAS 19R finance credit included in the Income Statement (0.4) (0.8)
- cash flows from exceptional items and acquisition and disposal related costs (9.4) (7.5)
- settlement of share options 0.1 (0.5)
- depreciation of property, plant and equipment 5.0 4.4
- underlying amortisation 0.5 0.4
- depreciation of right-of-use assets 5.6 5.2
- pension fund deficit recovery contributions (5.3) (3.1)
- IFRS 2 charges 1.5 0.4
Operating cash flows before movement in working capital 44.0 42.4
Changes in working capital:
- decrease/(increase) in inventories 5.8 (10.3)
- decrease/(increase) in trade and other receivables 1.9 (4.4)
- (decrease)/increase in trade and other payables (8.8) 0.6
Cash generated from operations 42.9 28.3
(b) Analysis of underlying net cash/(debt)
Cash Current Non-current Underlying
£m borrowings borrowings net debt
£m £m £m
At 1 April 2024 30.8 - (68.1) (37.3)
Cash flow (8.3) - 9.0 0.7
Non-cash finance costs - - (0.4) (0.4)
Exchange movement 0.2 - - 0.2
At 30 March 2025 22.7 - (59.5) (36.8)
Cash flow 9.1 39.8 (39.0) 9.9
Borrowings acquired - (39.8) - (39.8)
Non-cash finance costs - - 0.5 0.5
Exchange movement 0.4 - - 0.4
At 5 April 2026 32.2 - (98.0) (65.8)
Non-cash finance costs relate to the movement in the costs of raising debt
finance in the year.
8. Closure of Johnson Tiles SA
On 19 June 2025, the local Board of Norcros South Africa approved the
discontinuation and decommission of the manufacturing and sale of tiles under
Johnson Tiles SA (JTSA). This constitutes the closure of the final tile
manufacturing business within the Norcros Group and is considered a major
line of business. Accordingly, JTSA's results have been presented as
discontinued operations with a single amount shown on the face of the
Consolidated Income Statement, and prior year restated for comparability.
The table below provides further detail of the amounts presented in the
Consolidated Income Statement.
2026 2025
£m £m
Revenue 9.0 12.3
Expenses (11.0) (13.6)
Exceptional operating items (11.1) -
Finance costs (0.4) -
Loss before tax from discontinued operations (13.5) (1.3)
Tax credit on loss 3.6 0.4
Loss for the period from discontinued operations (9.9) (0.9)
Exceptional items within discontinued operations consists of c. £10.2m of
non-cash items predominantly relating to the write-off of inventory and fixed
assets, and c. net £0.9m of cash costs predominantly relating to redundancy
costs offset by proceeds from the sale of fixed assets.
The table below shows the cash flows in relation to discontinued operations.
These cash flows are included in the balances with the Group consolidated
cash flow and within note 7 Cash generated from operations.
2026 2025
£m £m
Loss before taxation from discontinued operations (13.5) (1.3)
Exceptional operating items from discontinued operations 11.1 -
Finance costs from discontinued operations 0.4 -
Depreciation and amortisation from discontinued operations 0.5 0.9
Cash flows from exceptional items (0.9) -
Changes in working capital 3.5 (4.0)
Cash used in operations 1.1 (4.4)
Purchase of property, plant and equipment and intangible assets (0.3) (1.0)
Net cash used in investing activities (0.3) (1.0)
Net increase/(decrease) in cash 0.8 (5.4)
9. Acquisition of Fibo
On 13 October 2025, the Group acquired 100% of the ordinary share capital of
Fibo Holding AS and subsidiaries (Fibo), a leading supplier of high-quality
waterproof, decorative wall panels, in exchange of cash consideration of
£11.5m. It has a modern production facility in Norway, with c. 70% of sales
from mainland Europe (with key positions in Scandinavia and central
Europe) and c. 30% from the UK. The acquisition was funded through
utilisation of the Group's banking facilities. Full details of the acquisition
are provided on the Group's website (www.norcros.com).
The following table summarises the goodwill arising on acquisition of Fibo and
the fair value of the assets acquired and the liabilities assumed.
Consideration was entirely cash with no contingent or deferred consideration.
£m
Consideration 11.5
Less: Fair value of assets acquired (9.2)
Goodwill arising on acquisition 2.3
Book value of assets and liabilities acquired Fair value of assets and liabilities acquired
£m Fair value adjustments on acquisition £m
£m
Intangible assets 11.2 33.2 44.4
Property, plant and equipment 3.6 0.2 3.8
Right of use assets 4.0 2.9 6.9
Inventories 8.4 (0.3) 8.1
Trade and other receivables 6.7 - 6.7
Cash 9.8 (0.2) 9.6
Listed bond borrowings (39.8) - (39.8)
Trade and other payables (15.1) 1.2 (13.9)
Current tax liabilities (1.1) (0.1) (1.2)
Deferred tax liability (1.8) (6.8) (8.6)
Lease liabilities (5.4) (1.4) (6.8)
Total identifiable net assets (19.5) 28.7 9.2
Goodwill 18.3 (16.0) 2.3
Cash consideration (1.2) 12.7 11.5
The Group has determined the fair value of Fibo's acquired intangible assets
(excluding goodwill) £33.2m, representing the brand and customer
relationships. The values of these intangibles are calculated using
assumptions on the expected future profitability of the acquired business. A
deferred tax liability of £7.8m has also been recognised, arising from the
recognition of acquired intangible assets. Acquired receivables predominantly
relate to Trade Receivables through the normal course of business.
In most business combinations, there is an element of cost which cannot be
allocated against the individual assets and liabilities acquired. This
residual amount is recognised as goodwill and is supported by a number of
factors which do not meet the criteria required for them to be treated as
intangible assets. In this case, the most significant elements relate to
Fibo's knowledgeable workforce. It is not expected at this stage that any of
the goodwill will be deductible for tax purposes.
Total costs relating to the transaction of £4.2m have been expensed to the
Consolidated Income Statement and included within acquisition related costs
of £3.9m recognised in the year ended 5 April 2026 and the remaining £0.3m
recognised in prior years.
No contingent consideration is included within the transaction; however, as
part of the transaction a long-term incentive scheme has been put in place
for key Fibo Group management staff which is also dependent on the financial
performance of Fibo Group. The charge for these schemes is built up over the
performance period and is treated as deferred remuneration, discounted over
the performance period, and is included within acquisition related costs in
the Consolidated Income Statement.
The revenue and underlying operating profit included in the Consolidated
Statement of Comprehensive Income since 13 October 2025 contributed by Fibo
are £32.7m and £3.3m respectively. On a pro-forma basis, Fibo's revenue and
underlyin operating profit, had it been part of the Group from the beginning
of the period, would have been £68.2m and £7.7m respectively, which would
have resulted in total Group results of £428.9m and £52.5m respectively.
The net cash outflow from the transaction reported within investing activities
was as follows:
£m
Cash consideration (11.5)
Cash acquired 9.6
Net cash outflow reported in the Consolidated Cash Flow Statement (1.9)
In addition to the above, a cash outflow of £3.9m relating to costs incurred
in respect of the transaction has been included within cash generated from
continuing operations, such that the total net cash outflow from the
acquisition in the period was £5.8m. Subsequent to the acquisition, the Group
repaid the borrowings of Fibo, relating to a £39.8m bond loan.
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