Overseas businesses hurt Norcros

22nd Jun 2010 07:45

Losses rose sharply at building tiles to showers group Norcros last year as problems overseas offset a strong performance in the UK.Pre-tax losses rose to £10m from £4.8m in the year to March, though sales rose to £170m from £154m. Most of the additional loss reflected a £5.7m write-off in Greece, though there were also £2.5m of restructuring costs. Trading profits rose to £7.3m from £7m.The UK businesses' trading profit grew by 30.3% to £11.6m, but South Africa posted a trading loss of £3.7m."Looking ahead, the UK outlook for consumer spending in the current year remains uncertain. Public sector investment is expected to decline, whilst private sector investment is forecast to remain muted. In South Africa, the economy is projected to show a slow recovery," Norcros said, but added that despite this it has made an encouraging start to this year.The group, which raised £30m last December, is not paying a final dividend. Finance director Nick Kelsall is to take over as Group chief executive-designate July ahead of the retirement of current CEO Joe Matthews next year.