Norcros PLC has announced its financial results for the year ended 31 March 2024, reporting a robust performance in line with market expectations. The company, a leading designer and supplier of high-quality bathroom and kitchen products in the UK, Europe, and South Africa, highlighted a strong foundation in place to execute its medium-term growth strategy. The financial summary for 2024 showed a revenue of £392.1m, representing an 11.1% decrease from the previous year, with underlying operating profit at £43.2m, 8.7% lower than the prior year. The company also reported a successful sale of Johnson Tiles UK, strengthening its portfolio mix.
The company's medium-term strategic targets include organic growth at 2% - 3% above the market, reaching a group underlying operating profit margin of 15%, achieving cash conversion greater than 90%, and a return on capital employed greater than 20%. Norcros also aims to deliver SBTi-validated science-based emissions targets by 2028. The current trading update revealed encouraging revenue performance in the two months to the end of May 2024, with the group revenue 2.2% ahead on a constant currency like-for-like basis.
Thomas Willcocks, CEO of Norcros, expressed delight in the company's performance and emphasized the significant opportunities in the mid-premium market segments. He highlighted the company's strategy building from a position of strength and scale, leveraging customer and operational synergies within the group. The company's Chair reported a robust performance for the Group with underlying operating profit in line with market expectations, despite challenging macro conditions. The focus on the more resilient mid-premium positioning of the company's brands was noted as a key attribute of its business model.
Norcros operates under six brands in the UK and Ireland and four brands in South Africa, employing around 2,100 people. The company is listed on the London Stock Exchange. The full presentation for analysts will be available on the Norcros website later in the day.