Norcros reports resilient first-half trading performance

10th Oct 2024 13:02

(Sharecast News) - Bathroom and kitchen product designer and supplier Norcros reported a resilient trading performance for the first half of the year in an update on Thursday.

The London-listed firm said its interim results, set to be announced on 21 November, were expected to show revenue of £188m, 7% lower than the prior year's £201.6m, largely due to the sale of Johnson Tiles UK in May.

On a like-for-like constant currency basis, revenue remained stable compared to the prior year.

Underlying operating profit for the period was expected to be at least £19.5m, compared to £21.4m in 2023.

The UK business saw like-for-like revenue growth of 1%, driven by new product development and cross-selling efforts, though reported revenue was down 9% due to the sale of Johnson Tiles.

Norcros said its South African business experienced a slight decline, with revenue down 1% on a reported basis and 2% lower in constant currency, as consumer sentiment remained subdued despite an improvement in electricity supply stability.

The company said it remained in a strong financial position with net debt expected to be around £45m, reflecting normal seasonal cash flow trends.

Its board remained confident in the group's strategy, and expected full-year operating profit to meet market expectations, with further progress anticipated towards its medium-term targets despite ongoing market challenges.

At 1134 BST, shares in Norcros were down 0.84% at 237p.

Reporting by Josh White for Sharecast.com.