Member Article

Cheshire’s Norcros announces £100 million refinancing package

Cheshire-based Norcros plc, a supplier of bathroom fixtures and accessories, has reported a new £100 million refinancing package.

Norcros has entered into a new committed £70 million unsecured revolving credit facility and a £30 million accordion facility through to July 2019 with three banks.

Two of the banks, Lloyds and Barclays are longstanding lenders to the Group, whilst the third, HSBC, introduces a new relationship replacing Svenska Handelsbanken.

The terms of these new arrangements provide the Group with increased flexibility reflecting its strong financial position, and will reduce net interest costs by approximately £0.2 million per annum based on current levels of net debt and leverage.

Norcros additionally reported mixed results accross its businesses, which include Triton, Johnson Tiles and Vado as well as a South African arm.

The group says the UK retail sector is taking longer to recover and still remains challenging, and hilst the medium term outlook in South Africa is still positive, the weak Rand continues to have an adverse effect on Rand profit translation to Sterling.

However the statement was positive, staing that: “Given the continuing improvement in the financial performance of our UK and South African tile businesses and the expected recovery in Vado export revenues as commercial projects complete, the Board remains confident that the Group should continue to make progress in line with market expectations for the current year.”

This was posted in Bdaily's Members' News section by Clare Burnett .