Headline figures from Norcros (NXR) were inflated at the half-year stage, as a £2.5m charge on the fair value of derivatives last year was turned into a £1.6m credit. Even so, underlying operating profits for the showers, taps, tiles and adhesives specialist rose nearly 11 per cent to £7.4m.
That said, trading was mixed. In the UK, Triton Showers recorded revenue growth of just over 1 per cent, to £25.4m. This was better than it looks, given that the UK shower market declined at around the same rate during the period.
The group's premium Vado brand of bathroom accessories delivered 18 per cent growth in the UK, but exports were heavily impacted by the timing of commercial projects and destocking. Trade revenue for ceramic tile manufacturer Johnson Tiles grew by 8 per cent, not least due to a contract to supply ceramic poppies for the Tower of London commemorative display. However, retail revenue fell by 9 per cent on weaker sales and destocking.
The group's South African operation grew revenue by 11 per cent in constant currency terms, but a 19 per cent decline in the rand left sterling revenue 7 per cent lower.
Analysts at broker Numis Securities forecast full-year pre-tax profit of £15.4m and EPS of 1.9p (from £14.6m and 2.8p in 2014).
| NORCROS (NXR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 16p | MARKET VALUE: | £95m | |
| TOUCH: | 15-16p | 12-MONTH HIGH: | 26p | LOW: 15p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 7 | |
| NET ASSET VALUE: | 9p* | NET DEBT: | 38% | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 111 | 0.3 | 0.1 | 0.17 |
| 2014 | 109 | 6.3 | 0.8 | 0.19 |
| % change | -2 | +2000 | +700 | +9 |
Ex-div: 4 Dec Payment: 7 Jan *Includes intangible assets of £26.8m, or 5p a share | ||||
