Norcros maintains expectations after resilient first quarter

(Sharecast News) - Norcros said in an update on Wednesday that it delivered a resilient trading performance in the first quarter of its financial year, with revenue modestly ahead of the prior year and full-year expectations remaining unchanged. In a statement ahead of its annual general meeting, the bathroom products specialist reported that group revenue for the 13 weeks ended 30 June rose 0.6% on a constant currency like-for-like basis, after adjusting for trading days.

Revenue in the core UK and Ireland market increased 1% on a like-for-like basis, supported by continued market share gains in the more resilient mid-premium segment.

In South Africa, revenue was down 0.6% year-on-year, reflecting a difficult start to the quarter, although the group said the closure of the tile manufacturing plant at Johnson Tiles South Africa was completed as planned.

"Norcros continues to grow market share, having delivered another resilient performance during the first quarter," said chief executive Thomas Willcocks.

"Whilst trading conditions remain challenging, we continue to make good progress towards our stated medium-term targets with focused and ongoing execution of our growth strategy."

The London-listed company also reiterated details of its recent agreement to acquire Fibo Holding, a leading provider of waterproof wall panels.

It said the deal was expected to bolster Norcros's European presence and create a dedicated waterproof wall coverings division.

Completion remains subject to approval from the UK Competition and Markets Authority.

At 1242 BST, shares in Norcros were up 1.74% at 292p.

Reporting by Josh White for Sharecast.com.