Business
Trading Statement
Trading Statement.
About this update from Norcros Plc
[{"type":"text","content":"\n RNS Number : 3286K Norcros PLC 16 April 2010 \n \n\nNorcros plc\n(\"Norcros\" or \"the Group\")\n \nTrading Update\n \nNorcros, the home consumer products group, notes the recent movements in its share price and is accordingly announcing its planned trading update in advance of entering the Close Period. The Group will announce its preliminary results for the year ended 31st March 2010 on Tuesday 22 June 2010. \n \nOverview\n \nThe year concluded on a positive note with trading maintaining the improving trend referred to in the Group's last IMS, issued on 11th February 2010.\n \nIn the UK, all our operations performed well despite the ongoing difficult market conditions. \nIn South Africa, our businesses continued to be impacted by very weak economic conditions and significantly reduced building activity. Notwithstanding, our adhesives operation benefitted from its market leadership position and delivered a resilient performance and we have significantly reduced the losses at our Tile Africa and Johnson Tiles businesses in the second half of the year. \n \nWe expect that Group revenues will be in the region of £169m (2009:£154.2m) with Group trading profit in the region of £7.1m (2009:£7.0m) and a Group loss before tax and exceptional items of approximately £2.5m (2009: profit of £2.9m). These results will be ahead of market expectations of a £6.8m trading profit and loss before tax and exceptional items of £4.9m.\n \nAs previously announced we also expect to report exceptional charges of approximately £2.5m relating principally to retail store closures in South Africa. In addition, having regard to the continuing losses in our Greek associate business and the difficulties in the local economy there, the Board expects to recognise an exceptional charge of approximately £6m relating to the impairment and hedging costs of the Group's loan to its Greek associate. \n \nFinancial position\n \nThe closing net debt position is expected to be in the region of £16.0m (2009:£45.8m) principally reflecting the reduction in debt following the capital raising of £27.7m (net of fees) in December 2009 and the ongoing intense focus on cash management.\n \nOutlook\n \nThe performance of our UK businesses remains robust in spite of the continuing diffi...