Business
Trading Update and Analyst Site Visit
Trading Update and Analyst Site Visit.
About this update from Norcros Plc
[{"type":"text","content":"\n \nRNS Number : 7004E Norcros PLC 12 April 2011 \n \n\n \nNorcros plc\n(\"Norcros\" or \"the Group\")\n \nTrading Update and Analyst Site Visit\n \nNorcros, the home consumer products group, will announce its preliminary results for the year ended 31 March 2011 on Thursday 23 June 2011. In advance of entering the Close Period, the Group is providing the following trading update. The period under review consisted of 53 weeks compared to 52 weeks last year.\n \nOverview\n \nThe year concluded with the Group maintaining the strong trading performance referred to in the Group's last IMS, issued on 10 February 2011.\n \nAll our UK businesses have continued to make good progress and have gained market share despite the ongoing uncertainty over the impact of public sector cuts on consumer and business confidence.\n \nIn South Africa, the turnaround in operating performance achieved at the interim stage has been sustained notwithstanding continued low levels of building activity.\n \nWe expect that Group revenues for the 53 week period will be in the region of £195m (2010:£169.6m), representing growth of c 7% on a constant currency and LFL number of weeks basis. Group trading profit is expected to be in the region of £ 11.5 m (2010: profit of £7.3m) and a Benchmark profit before taxation* of approximately £ 9.7 m (2010: profit of £3.4m). The expected results will be ahead of market expectations of a £11.2m trading profit and Benchmark profit before taxation* of £9.4m.\n \nFinancial position\n \nClosing net debt (before prepaid finance costs) has reduced during the period and is expected to be in the region of £13m (2010:£18.9m) principally reflecting the strong trading performance of the Group.\n \nAs outlined in our interim report in November 2010, we have continued to invest for future growth as demonstrated by the investment in additional capacity in both our UK Tiles and UK Adhesives operations.\n \nOutlook\n \nManagement remains focussed on delivering market share gains in all our UK operations, realising the benefits of the recent investment in capacity in our UK Tile and UK Adhesive businesses and securing further benefits in South Africa from the continuous operational improvement programmes.\n \nThe economic environment remains uncertain a...