14th Nov 2013 13:38
LONDON (Alliance News) - Norcros PLC Thursday reported higher first-half revenues, boosted by the acquisition of bathroom fitting manufacturer Vado earlier this year, but a slump in pre-tax profits when including the GBP4.6 million in exceptional items and finance charges.
The showers, taps and tiles supplier, which owns Triton Showers and Johnson Tiles, declared a 9.7% increase in its interim dividend, to 0.17 pence per share.
The group reported an underlying profit, which excludes exceptional items and finance charges, of GBP6.1 million in the six months to September 30, up 2.3% when compared with GBP6.0 million a year earlier.
However, after including these one-off figures, it reported a pre-tax profit of just GBP500,000, compared with GBP4.4 million in the first-half of last year.
It said it incurred an operating charge of GBP1.2 million in the first-half, largely due to restructuring costs at Johnson Tiles UK, and an increased non-cash finance charge of GBP3.4 million.
Norcros said that revenues were up 9% to GBP116.7 million in the six months period, boosted by the acquisition of bathroom fitting manufacturer Vado earlier this year.
It said total revenue in its UK businesses increased by 19.1% to GBP72.8 million, but declined 4.9% on a like-for-like basis excluding Vado.
"Despite destocking in the UK retail sector, we have recorded strong constant currency revenue growth of 16.3% in the period, reflecting the acquisition of Vado, improving UK market conditions towards the end of the period and double digit constant currency growth in South Africa," said Chairman Martin Towers in a statement.
Triton Showers sales rose by 1.5% to GBP25.1 million, as trading picked up in the second quarter after a weak first quarter trading period.
It said that revenues from its Vado business were up 14% to GBP14.7 million, although the business was not under Norcros' ownership last year.
Norcros said that its ceramic tile manufacturing business, Johnson Tiles, reported a 11% fall in revenue, to GBP30.3 million, from GBP34.1 million a year earlier. It said that UK revenue from the business fell 15.4%, although the situation improved in the second quarter supported by increasing activity among housebuilders.
The group said that total revenue during the first-half from its South African businesses were up 12% on a constant currency basis.
Norcros shares were up 5.1% Thursday afternoon, at 20.75 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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