17th Oct 2019 09:22
(Alliance News) - Bathroom and kitchen products supplier Norcros PLC said Thursday it delivered a "robust" first half performance despite underlying weakness in its South African business.
For the 27 weeks ended October 6, revenue is expected to jump 11% to GBP181.2 million from GBP162.6 million the year prior. On a constant currency basis, revenue was 13% higher and on a like-for-like basis up 0.9%.
Reported revenue was boosted by South African revenue surging 25% after the acquisition and integration of the House of Plumbing business. In January, Norcros bought RAP Plumbing Supplies - which trades as House of Plumbing in South Africa - for up to ZAR215 million, equivalent to GBP12.1 million.
On a like-for-like basis, however, South African revenue was flat amid the "difficult economic environment and lower levels of activity" in the country.
UK like-for-like revenue rose 1.3% over the same period, with the firm gaining UK market share during the period and increasing exports.
"The robust performance in the first half against the backdrop of challenging conditions in our two main markets demonstrates the resilience of the group's strategy and operating model," Norcros said in a statement.
"The fragmented nature of our markets continues to provide growth opportunities for the group as we maintain our focus on winning market share," Norcros added. "The board remains confident that the group's leading market positions, portfolio of strong brands and financial strength will enable further progress in line with its expectations for the year."
Shares in Norcros were unchanged at 223.00 pence in London on Thursday.
By Ahren Lester; [email protected]
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