Norcros leaks lower on 'sluggish' UK retail outlook

22nd Jul 2015 16:50

(ShareCast News) - Shares in bathroom accessories supplier Norcros were flushed lower as investors reacted to the company's comments that the UK retail sector was "challenging" and "sluggish".Although the fully FTSE listed company said the first quarter was in line with management expectations, it admitted that market conditions were varied for its UK businesses.Group revenue from continuing operations for the 13 week period was 4.3% higher on a constant currency basis compared to the same period last year and 3.0% higher in sterling terms, reflecting a weaker South African rand.UK revenue was only 0.6% higher than the same period last year as increased activity in the trade sector driven by new house building and commercial contracts, slightly outweighed the fact that the retail sector remained sluggish.The South African businesses grew by 12.0% on a constant currency basis and by 7.9% in sterling terms.Chief executive Nick Kelsall said: "Whilst the UK retail sector remains challenging, the performance in both the UK trade sector and in South Africa, together with improved manufacturing efficiencies in Johnson Tiles UK, means the board remains confident that the group will continue to make progress in line with market expectations for the current year."Norcros shares were down 5.8% to 20.25p in late afternoon.