Norcros plc (LON:NXR), the market-leading designer and supplier of high-quality sustainable bathroom and kitchen products, has announced its interim results for the six months ended 30 September 2024.
Financial summary
| 6 months to30 September 2024 | 6 months to30 September 2023 | % change 2024 v 2023 | |
| Revenue | £188.4m | £201.6m | (6.5%) |
| Revenue constant currency LFL1 | 0.1% | ||
| Underlying operating profit2 | £19.7m | £21.4m | (7.9%) |
| Underlying profit before taxation2 | £16.4m | £18.1m | (9.4%) |
| Diluted underlying EPS2 | 14.1p | 15.6p | (9.6%) |
| Operating (loss)/profit | (£8.6m)3 | £15.3m | (156.2%) |
| Underlying net debt2 | (£44.9m) | (£46.6m) | |
| Interim dividend per share | 3.5p | 3.4p |
Highlights
· Market share growth in a challenging demand environment (Group revenue +0.1% LfL):
o UK (revenue +0.9% LFL): share gains – new product development (“NPD”) and cross-selling
o SA (revenue -1.7% constant currency): macro (inc. energy) stabilising but subdued consumer confidence
o Well-positioned for market recovery in new house build and RMI
· Continued strong progress on delivering strategic initiatives:
o Portfolio Development – completed disposal of Johnson Tiles UK
o Organic Growth – cross-selling, NPD and service levels
o Operational Excellence – consolidating UK warehouse footprint
o ESG – net zero transition – investment in sustainable products
· Reported revenue of £188.4m (2023: £201.6m). Underlying operating profit of £19.7m (2023: £21.4m)4
· UK underlying operating margin at 13.6% (2023: 13.0%) with Group underlying operating margins flat at 10.5% (2023: 10.6%)
· Strong balance sheet – low leverage at 1.0x underlying EBITDA
· Interim dividend of 3.5p per share, an increase of 0.1p
· The Board expects full year underlying operating profit to be in line with market expectations5
Thomas Willcocks, CEO, commented:
“In a weak market during the first half of the year Norcros has again grown share and made further strategic progress. While the demand environment is expected to remain challenging, we remain focused on the significant market opportunities available and are confident that our leading positions and strategic implementation will continue to deliver market share gains. The Board therefore expects full year underlying operating profit to be in line with market expectations5 showing further progress towards achieving our medium-term targets.”
There will be an in-person presentation and Q&A session today at 9.30am GMT for analysts at the offices of Hudson Sandler, 25 Charterhouse Square, London, EC1M 6AE. There will also be a live audio webcast of the event (without Q&A), available at https://brrmedia.news/NXR_IR_24/25. The supporting slides and webcast playback will be available in the investors section of the Norcros website at www.norcros.com later in the day.
1 LFL (like for like) revenues at constant currency adjusted for Johnson Tiles UK and Norcros Adhesives
2 Definitions and reconciliations of alternative performance measures are provided in note 3
3 The operating loss in the period is post the non-cash cost of £21.4m, as a result of the disposal of Johnson Tiles UK. Further detail is provided in note 4
4 Year on year movement reflects disposal of Johnson Tiles UK, investment in operational efficiencies, and the challenging demand environment in South Africa
5 Norcros compiled market consensus for the year to 31 March 2025, as at 21 November 2024, is for an underlying operating profit of £43.1 million
