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Norcros bounces back

Acquisitions and a stronger second half spell good news for Norcros.
April 18, 2017

Shares in Norcros (NXR) rose nearly 14 per cent after the bathroom accessories supplier revealed that revenue for the year to 31 March 2017 is likely to be up around 15 per cent. Recent acquisitions are now starting to make a significant contribution, while the South African business saw turnover jump by nearly a quarter, although currency movements brought this back to a still respectable 8.4 per cent on a constant currency basis.

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Revenue in the UK grew by 11.7 per cent, thanks to contributions from the Abode business acquired in March 2016, although this was a more modest 1.8 per cent on a like-for-like basis. But trading has shown a solid recovery from the first half of the year when revenue fell by 5 per cent, and sales in the second half were up by 8.3 per cent. The tiles business is also being restructured, which will result in an exceptional charge of £2.3m in the year to March 2017.