Bathroom and kitchen supplier Norcros has reported momentum has continued since its AGM update in July, with a “marked recovery in demand” in the second quarter.

The group consists of seven brands in the UK, which include: Abode, Triton, Vado, Merlyn, Croydex, Johnson Tiles and Norcros Adhesives, as well as four brands in South Africa.

In the trading update, Norcros stated it had delivered a “sustained level of profitability” in the second quarter combined with “excellent cash generation”.

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Group revenue for the second quarter (13 weeks: 2018 14 weeks) is expected to be 105% of its prior year on a constant currency like-for-like basis.

Norcros states this reflects market share gains in its major sales channels.

The group revenue for the 26-week first half (2019: 27 weeks) is expected to be around £135.3m (2019: £181.2m), 83% of prior year revenue on a constant currency like-for-like basis.

It stated the UK business has performed strongly and it expects to report the first half revenue of approximately £93.7m (2019: £115.6m), with second quarter revenue at 104% and half year revenue at 84% on a like-for-like basis.

In particular, Norcros cited Merlyn, Triton and Vado experienced a marked recovery in the second quarter, with revenue ahead of the prior year on a like-for-like basis.

In addition, its South African business was also reported to have made good process and the group expects to post first half year revenue of approximately £41.6m (2019: £65.6m), with second quarter revenue at 106% and half year revenue at 79% on a like-for-like basis.

Reflecting the recovery, Norcros is expected to report a pre-IFRS 16 underlying profit of approximately £12m for the first half (2019: £17.1m).

It is expected net debt will have reduced to circa £8m at the half year (2019: £41.m), which the group states is a “significant reduction on the £36.4m reported at the year end.”

Norcros will announce its interim results for the 26-week period, ended October 4, 2020 on November 12, 2020.

At the beginning of 2020, Norcros predicted Coronavirus disruption was likely to have an impact on this financial year and into next.