Posted 28th June

Norcros marks 10th consecutive year of growth

28th June 2019 - 07:00am
money matters, norcros, revenue, trading, update, report, merlyn, johnson tiles, triton, kbb, kbbdaily

Norcros has marked its 10th consecutive year of growth in revenue and underlying operating profit for the year ending 31st March 2019, with underlying operating profit up by 25.5% to reach £34.4m while revenues grew by 10.3% to hit £331m.

UK revenue was up 13.7% to reach £228.1m, which the group said reflects a full-year contribution from Merlyn, which has “continued to perform strongly since acquisition”. However, like-for-like revenue in the UK was “broadly flat” across the year, due in part to lower retail revenue at Johnson Tiles UK.

Underlying operating profit in the UK was 42.5% higher than the previous year, reflecting a return to profitability from Johnson Tiles in the second half of the year. Norcros noted that the UK market “remains challenging with the Brexit outcome and the fragile political situation impeding activity levels”.

In terms of Norcros’s brands, revenue at Triton grew by 7.2%, while Merlyn saw growth of 13.8% and Abode’s revenue was 26.6% higher than the previous year. However, revenue at Croydex dropped by 10.3%, Vado saw a decline of 3.5% and Johnson Tiles recorded a decrease in revenue of 12.1%.

“I am delighted to announce that Norcros has recorded another year of growth despite the uncertain economic and political backdrop in our two main markets,” said Norcros chairman Martin Towers. “This reflects the resilience of the group's business model and the success of our acquisition strategy.

“It also represents the group's 10th consecutive year of revenue and underlying operating profit growth, which is a testament to the management team, the strategy and its highly successful execution.”

Towers added: “Whilst market conditions are likely to remain challenging, the board is confident that these attributes will continue to drive market outperformance leading to further progress in the current year consistent with our strategic objectives.”

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