Encouraging trend continues at Norcros

7th Oct 2010 14:06

Showers and tiles group Norcros has seen a turnaround in its South African business, despite continued uncertain market conditions.Overall, the group has seen a sharp increase in like for like (LFL) sales, helped by some currency tailwinds. When the numbers are finally totted up group revenues for the 27 weeks to 3 October are expected to be £96.7m, up from £83m in the comparable (but 26-week) period a year earlier.Adjusting for this year's extra week, like for like revenues are expected to be about £93.2m, representing a 12.3% increase on last year, or 6.4% on a constant currency basis. The UK operations saw a rise of roughly 5.8%, South Africa rose 6.6% while the rest of the world chipped in with a 9.1% improvement. Group profit before tax and exceptional items (for the 27 week period) is expected to be not less than £3.4m, compared to a first half loss of £1.7m last year. The South African business should weigh in with a small trading profit, compared to a large trading loss last year.Net debt (before prepaid finance costs) at 3 October 2010 is expected to be in the region of £15.0m, compared to £48.9m at the end of September 2009. The improvement largely reflects the reduction in debt following the capital raising of £27.7m (net of fees) in December 2009, the proceeds from the sale of its stake in RJ Beaumont and the ongoing focus on cash management.