Norcros has released its interim results for the six months ending 30 September 2024. Despite a challenging demand environment, the company demonstrated resilience, achieving growth in market share and making strategic progress.
The group reported revenues of £188.4m, a slight decline from £201.6m in the same period last year, though on a like-for-like basis at constant currency, revenues grew marginally by 0.1%. Underlying operating profit was £19.7m, down from £21.4m, reflecting market conditions and strategic investments. UK operations saw a 0.9% rise in like-for-like revenue, supported by new product developments and cross-selling initiatives, while South Africa experienced a slight decline of 1.7% due to subdued consumer confidence and macroeconomic factors.
Key strategic advancements included the successful disposal of Johnson Tiles UK, improvements in operational efficiencies, and continued investment in sustainable products. The company also consolidated its UK warehouse operations to streamline supply chains. These efforts contributed to maintaining robust operating margins, with the UK segment improving to 13.6%, compared to 13.0% in the prior year.
Norcros remains financially strong, with low leverage of 1.0x underlying EBITDA and underlying net debt reduced to £44.9m. Reflecting confidence in its outlook, the company declared an interim dividend increase to 3.5p per share.
CEO Thomas Willcocks emphasised the company’s ability to gain market share amidst a weak demand environment. While recognising ongoing challenges, he expressed confidence in Norcros’s strategy and market position to deliver further growth. The Board expects full-year underlying operating profit to meet market expectations, aligning with its medium-term targets.
Norcros has shown resilience and adaptability, leveraging its strategic initiatives to secure growth opportunities and reinforce its market position. With strong fundamentals and a focused approach, the company is well-positioned for long-term success in a competitive market.
