25th Mar 2014 14:23
LONDON (Alliance News) - Norcros PLC said Tuesday that it has entered into a conditional agreement to sell its subsidiary Norcros Industry Pty Ltd, which owns its Australian tiles business Johnson Tiles, to Malaysian company Kim Hin Industries Berhad for AUD7.55 million, a deal that will leave it focused on the UK, Africa and the Middle East.
The supplier of branded showers, taps, bathroom accessories, tiles and adhesives, said the total consideration is on a debt and cash free basis, subject to a normalised working capital adjustment on completion.
Norcros Industry Pty Ltd reported revenues of AUD15.9 million for the year ended March 31, 2013, with an operating profits of AUD0.3 million.
Norcros said the disposal will generate a non-cash loss of approximately GBP1.6 million, which will be disclosed as part of the result from discontinued operations in the year ending March 31, 2014.
It said that the disposal is conditional upon Kim Hin Industries Berhad gaining shareholder approval for the transaction.
"The disposal of our Australian business represents a full exit from the region, and allows the group to focus its resources on its strategic objectives of organic and acquisitive growth in the UK, Africa and the Middle East," said Group Chief Executive Nick Kelsall in a statement.
Norcros shares were trading flat at 20.50 pence per share Tuesday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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