Norcros sees annual revenues jump

9th Jun 2022 10:28

(Sharecast News) - Norcros reported a hike in annual revenues on Thursday, boosted by "robust" trading as it continued to recover from the impact of Covid-19.

The supplier of bathroom and kitchen products saw revenues rise 22% in the year to 31 March, to £396.3m, or by 21% on a constant currency like-for-like basis.

Underlying operating profits rose 24% to £41.8m, while pre-tax profits rose to £33.0m from £18.5m a year previously. Within that, the company's UK business saw operating profits increase to £30.9m from £26.9m, while its South African operations saw them rise to £10.9m from £6.9m.

Norcros said "robust" trading had helped deliver the record numbers, despite selling prices rising to counter surging input inflation. It also built inventory levels to help offset wider supply chain challenges.

Gary Kennedy, chair, said: "Norcros has continued its recovery following the period of exceptional global disruption and uncertainty caused by the Covid-19 pandemic. Furthermore, the resilience of the group's business model and strategy has proven to be highly effective through a period of unprecedented cost inflation and supply chain challenges."

Looking to the current year, the firm said trading in the two months to 31 May was "marginally" ahead of the same period a year earlier, by around 1%, but up 25% on the same two months in 2019, prior to the pandemic.

It continued: "The normalisation of consumer spending patterns, in addition to pressure on household disposable incomes, will provide some uncertainty in our markets. In addition, the secondary impacts of the pandemic and the Ukraine crisis remains difficult to predict.

"Notwithstanding these uncertainties, we are confident that our supply chain infrastructure combined with our local inventory holidays will ensure our leading competitive position is maintained."

As at 1015 BST, shares in Norcros were ahead 4% at 250p.