Member Article

Norcros predict full year profit rises

Shower, tile and adhesive business, Norcros, has predicted revenue and profit rises for its next annual results ahead of their release on 13 June.

The Cheshire-based firm predicted a 9% rise in full-year earnings up to 31st March, along with a 5% rise in group revenues and just under 7.5% increase in operating profits.

Norcros also recently announced its acquisition of rival firm, Eurobath International, which trades as Vado, for £16m.

In Thursday’s trading update, the business said this acquisition should bring in immediate earnings, although it expects to end the year with debt levels of approximately £31m, a significant rise from net debts of £17.8m in 2012.

The firm said Vado has historically brought in a “strong cash conversion”, so should have a rapid, positive impact on group earnings.

In a statement, Norcros said: “The recent weakness of Sterling and rising energy costs have added to the already challenging outlook for our UK and South African markets.

“Nonetheless, our businesses have demonstrated their resilience and ability to gain market share. With the acquisition of the Vado business combined with the ongoing programme of growth initiatives and self-help actions, the Board remains confident that Norcros will continue to make further progress.”

This was posted in Bdaily's Members' News section by Miranda Dobson .