Norcros to end tile production in South Africa

(Sharecast News) - Norcros announced on Monday that it will shut down manufacturing at Johnson Tiles South Africa at the end of June, following the conclusion of a strategic review. The London-listed bathroom products group said the decision would mark the end of its tile production operations in Olifantsfontein, with remaining inventory to be sold through its Tile Africa retail chain.

It said the closure of the South African tile unit, which accounted for less than 4% of group revenue in the 2025 financial year, was expected to be cash neutral once completed.

The business reported £12.3m in external revenue in the year, made a small underlying operating loss before central costs, and recorded a £4.4m operating cash outflow.

Norcros said the operation held fixed assets of around £5m and working capital of £14m as of 31 March, including £16m in inventory.

It confirmed the financial performance of Johnson Tiles SA would now be reported as a discontinued operation.

The company expected a small cash outflow in the 2026 period, which would be offset in 2027 as the remaining stock was sold.

It said all obligations to staff, customers and suppliers would be honoured.

"In June 2023, we communicated our strategic priorities, namely portfolio development, organic growth, operational excellence and ESG with a focus on ensuring that we develop a capital light and cash generative business portfolio," said chief executive officer Thomas Willcocks.

"After a thorough review process, the difficult decision to close our Johnson Tiles business in South Africa was reached, whilst recognising our long and proud history of tile manufacturing in the country and more importantly the impact on our people.

"I would like to thank the Johnson Tiles team for their determination, commitment and contribution, especially over the last five years that have been characterised by significant and ongoing macro-economic challenges."

Willcocks added that Norcros had "an excellent South African management team who will now focus on growing our remaining profitable, and well invested businesses in the region".

At 1047 BST, shares in Norcros were up 1.56% at 275.22p.

Reporting by Josh White for Sharecast.com.