10 April 2025

Norcros plc

Trading update for the year ended 31 March 2025:

Results in-line with expectations; Strategic review of Johnson Tiles South Africa

Norcros plc ("Norcros" or the "Group"), the market-leading designer and supplier of high-quality bathroom and kitchen products, will announce its full year results for the year ended 31 March 2025¹ on 12 June 2025. In advance of this, the Group is pleased to provide the following scheduled trading update.

Underlying operating profit in line with expectations

During the year, the Group continued to demonstrate the attractiveness of its business model and the strength of its innovative products and customer service which underpin its leading market positions. As a result, the Board expects underlying operating profit for the year ended 31 March 2025 to be in line with market expectations².  

Group revenue for the year ended 31 March 2025 is expected to be marginally ahead of the prior year on a constant currency ("CC") like for like ("LFL³") basis. Reported revenue is expected to be 6.2% lower than the previous year at circa £368 million (2024: £392.1 million).

In our UK businesses, LFL revenue was 1.0% ahead of prior year demonstrating market share growth in a weak demand environment. Reported revenue was 9.1% lower than the prior year largely due to the sale of Johnson Tiles UK which completed in May 2024. These market share gains were again driven by new product launches, excellent supply chain management and award winning customer service.

In our South African business, revenue for the year was 1.3% higher on a reported basis and 0.4% higher on a CC basis. Energy disruptions were minimal in the period and despite consumer confidence remaining subdued, our retail business, in particular, is well-placed to benefit as the market gradually recovers.

Financial position

The Group remains in a strong financial position with net debt (on a pre-IFRS 16 basis) at 31 March 2025 expected to be circa £37 million (2024: net debt of £37.3 million) with cash generation in the period impacted by cash outflows of circa £4.4 million at Johnson Tiles South Africa. Net debt leverage is circa 1.0x underlying EBITDA and provides a solid foundation from which the Group can execute its strategic priorities.

Strategic review of Johnson Tiles South Africa

In line with our strategy to develop a capital light and cash generative business portfolio, the Group has initiated a strategic review of Johnson Tiles South Africa which should conclude by July 2025.

Challenging demand conditions in the tile manufacturing segment of the South African market have continued, exacerbated by a recent material increase in tile manufacturing capacity in the region which has made it increasingly difficult to sell our capacity profitably.

Johnson Tiles South Africa delivered external revenue for the year ended 31 March 2025 of circa £12m (representing circa 3% of Group revenue) a small underlying operating loss pre-South African central costs in the year and operating cash outflows of circa £4.4m.

Thomas Willcocks, Chief Executive Officer, said:

"We have again delivered a strong set of results, underpinned by the strength of our brands, their leading positions and the successful execution of our strategy. There is clearly macro uncertainty at present with the consequences of increased global tariffs yet to play out. Norcros has negligible direct exposure to the USA (revenue less than 0.5%) and a proven local and international supply chain, again with no direct exposure to the USA.

The Group will proactively manage our way through this period, as we have successfully done in the past, whilst we continue to look to capitalise on the further share gain opportunities that our scale, supply chain resilience and strong balance sheet provide."

Notice of results

The Group will announce its full year results for the year ended 31 March 2025 on Thursday 12 June 2025.

1.       The accounting reference 'year to 31 March 2025' relates to the 52-week period commencing on 1 April 2024 and ending 30 March 2025

2.       Norcros-compiled market consensus for the year to 31 March 2025 underlying operating profit is £43.0 million with a range of £42.0 million to £43.8 million

3.       LFL (like for like) adjusted for Johnson Tiles UK and Norcros Adhesives

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Notes to Editors

Norcros is a market-leading group of brands specialising in design-led, sustainable bathroom and kitchen products across the UK, Ireland, South Africa, and select export markets. Each of our brands offers mid-premium product ranges distinguished by their innovation, design, and commitment to sustainability, all backed by industry-leading service to our trade and retail customers.

Through a strategic blend of acquisitions and organic growth, Norcros has become the UK and Ireland's number one bathroom products group. We see significant potential for further expansion within this large and fragmented market, accelerating growth and capturing market share through continued acquisitions, organic development, operational excellence, and meaningful ESG capabilities.

Norcros encompasses the renowned brands, Triton, Merlyn, Grant Westfield, VADO, Croydex, and Abode in the UK, and Tile Africa, TAL, Johnson Tiles South Africa, and House of Plumbing in South Africa.

Norcros is headquartered in Wilmslow, Cheshire and employs around 2,100 people. The Company is listed on the London Stock Exchange. For further information please visit the Company website: www.norcros.com