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Norcros PLC on Thursday noted its UK business dragged down overall like-for-like revenue growth in its first half, but still expects to report an overall record revenue.
Norcros is a Cheshire-based kitchen and bathroom products supplier.
Overall, for the half-year ended October 2, the firm anticipates revenue at a ‘record’ £220 million, up 9.5% from £200.9 million a year ago. Further, it eyes an underlying operating profit of at least £21 million, lower than £22.0 million in the first financial half of 2021.
Meanwhile, like-for-like revenue is expected to grow 1% from a year ago, despite its South Africa unit expecting to climb 10%. Overall, like-for-like revenue is expected to be dragged down by its UK business, where like-for-like revenue is anticipated to contract by 3%.
Citing its UK business, the company stated: ‘Our performance in the trade channels remains resilient offset by softer demand in the retail channels and destocking in some of the larger retail customers.’
Despite the meek overall growth compared to a year prior, total like-for-like group growth is still expected to be 17% higher than during the same period in pre-pandemic 2019, or 20% on a constant currency basis.
Looking ahead, the firm said it is confident it will perform in line with internal expectations for the year ending March 31, 2023.
Norcros will release its half-year results for the six months to October 2 on November 9.
Norcros shares were 1.5% higher at 180.67 pence each in London on Thursday midday.
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