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Norcros PLC on Thursday expressed confidence in meeting full-year profit targets after reporting a marginal increase in half year sales amid ‘ongoing challenging market conditions.’ The Wilmslow, Cheshire-based supplier of bathroom and kitchen products said sales nudged up by 0.1% to £184 million in the 27 weeks to October 5 from £181.9 million the year prior, or by 1% at constant currency. Performance improved throughout the half-year, with sales up 2% in the last 18 weeks of the period after declining 5% in the first 9 weeks. UK & Ireland sales rose 1% in the 27 weeks but fell 2% in South Africa. Group underlying continuing operating profit is expected to be £21.8 million up 6.9% from £20.4 million last year, with operating margins climbing to 11.9% from 11.2%. The core UK&I market operating margin is seen rising to 14.8% from 13.6% the year prior. Norcros said it remains confident it will continue to deliver market share gains for the financial year ending March. ‘Despite the ongoing challenging market conditions, the board expects full year underlying operating profit to be in line with market expectations, and to show further progress towards our medium-term strategic targets.’ Company compiled consensus for financial 2026 for underlying operating profit is currently £43.9 million to £45.2 million excluding Fibo, the supplier of waterproof decorative wall panels acquired in July, or £47.2 million to £48.7 million, including Fibo. Excluding Fibo, Norcros reported underlying operating profit of £43.2 million in the financial year to March. ‘We are well positioned to further accelerate growth in both the [repair, maintenance & improvement] and housebuilding markets when market conditions improve,’ the firm added. Net debt is forecast at £31 million at September 30, down from £44.9 million a year ago. Shares in Norcros were down 0.4% at 288.00 pence each around midday in London on Thursday. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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