Underlying operating profit increased to £16.1m
Supplier of showers, taps, bathroom accessories, tiles and adhesives, Norcros has announced its results for the year ended 31 March, 2014.
The company has achieved its fifth consecutive year of revenue growth, which has increased 9.2% to £218.7m and by 16.6% on a constant currency basis. Norcros also achieved an underlying operating profit growth of 25.5% to £16.1m.
After it was acquired in March 2013, Norcros has integrated Vado into the business, with the brand recently becoming a member of the Builders Merchants federation (BMF). UK revenue increased to £148m, an increase of 20.6%, said to reflect the acquisition of Vado.
Norcros has also completed the disposal of Johnson Tiles Australia, so it can focus on its target areas of the UK, Africa and the Middle East according to the company.
Chairman Martin Towers commented: “I am pleased to report that Norcros has made significant progress during the year to 31 March 2014, recording a fifth consecutive year of revenue and underlying operating profit growth, which was achieved despite mixed market conditions in the UK and a challenging environment in South Africa.”
He continued: “I believe that the Group will continue to make progress towards its strategic targets of doubling revenue to £420m by 2018 through both organic and acquisitive growth, and achieving an underlying return on capital employed between 12% and 15% across the cycle. Underpinned by our strong brands, leading market position and continued self-help initiatives focused on market share gain and operating efficiencies, I look forward to the future with confidence.”
Norcros operates primarily in the UK and South Africa, and operates under four brands in the UK: Vado, Triton Showers, Johnson Tiles and Norcros Adhesives. Based in Wilmslow, Cheshire, Norcros employs 1,700 people.