12th Feb 2008 07:00
Norcros PLC12 February 2008 Norcros plc("Norcros", the "Group" or the "Company") Interim Management Statement Norcros, the home consumer products group with operations primarily in the UKand South Africa, today publishes its Interim Management Statement covering the18 week period from 1 October 2007 to 3 February 2008. Overview Group revenues for the 18 weeks ending 3 February 2008 increased by 6.3% and by5.4% on a constant currency basis, reflecting revenue growth of 2.6% in our UKoperations, 10.7% on a constant currency basis in our South African operationsand 11.7% on a constant currency basis in the Rest of the World. UK (circa 63% of Group Revenues) Triton, the UK market leader in domestic showers, has continued to perform well,maintaining its share in the electric segment and growing market share in themixer segment as a result of further investment in new product development andmarketing. In a tough market overall revenues only declined 2.4% in the periodand remained 1.2% ahead for the year to date. Profitability has been maintainedthrough the period reflecting tight control of costs. H & R Johnson, a leading UK manufacturer and supplier of ceramic tiles and tileadhesives, has made further progress in the Trade and Multiple sectors.Domestic revenues were strongly ahead, more than offsetting a decline in exportrevenues. Profitability has increased reflecting the sales growth and tight costcontrol despite significant increases in energy costs. Good progress continuesto be made with our UK adhesives business. South Africa (circa 32% of Group Revenues) In South Africa overall revenues have increased by 12.6% and by 10.7% on aconstant currency basis, although profitability has been impacted by investmentin new stores, our store refurbishment programme, rising interest rates, poweroutages, and higher costs in our tile manufacturing operations. Our retail operation, Tile Africa, has increased constant currency revenues by9.2% reflecting the benefits of store expansion and upgrades to our successfulnew format. In the past six months, four new stores have been opened and fourexisting stores have been, or are in the process of being, upgraded. Inaddition, we have agreed the purchase of two former franchise stores. Store improvement and expansion remains a priority with locations of highrevenue potential being targeted for new locations or upgrades. TAL, our adhesive operation, increased constant currency revenues by 18.2%reflecting both the strength of our new product development programme and newaccount openings. Johnson Tiles, our tile manufacturing operation, benefited from marginallyhigher revenues but profitability has been impacted by input cost pressures inenergy and raw materials. Rest of the World (circa 5% of Group Revenues) Our wholly-owned subsidiary in Australia, selling tiles under the "Johnson"brand, continues to make good progress increasing revenues by 22.2% and by 11.7%on a constant currency basis. Outlook Heading into the important Spring trading period we continue to control our costbase, improve efficiency and invest in new product development and marketinginitiatives. We face the challenges of weaker consumer demand in the UK and ofrising interest rates, power disruption and consumer uncertainty in SouthAfrica. Yet Group trading remains resilient reflecting proactive measures beingtaken by management to improve our product offer, service and competitivenessacross all markets. Overall, we expect full year Group profit to be ahead of the prior year whilstmarginally behind market expectations at the trading level, but at least in linewith expectations at the post-tax level before exceptional items, reflectinglower interest and tax charges. With a clear strategy and decisive action to enhance our market strengths, theBoard is confident of building on the current year's advances with furtherprogress in financial year 2008/9. 12th February, 2008 ENQUIRIES Norcros plcJoe Matthews, Group Chief Executive Tel: 01625 547700Nick Kelsall, Group Finance Director AltiumPhil Adams Tel: 0161 831 9133Mike Fletcher College Hill Tel: 020 7457 2020Mark GarrawayMatthew Gregorowski For further information please visit the Company website:www.norcros.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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