Norcros PLC, a leading designer and supplier of high-quality bathroom and kitchen products in the UK, Europe, and South African markets, has announced the sale of Johnson Tiles UK. The decision to sell Johnson Tiles UK follows a strategic review, with the company entering into an agreement to sell it to its existing management team. Johnson Tiles UK, known for designing, manufacturing, and sourcing ceramic floor and wall tiles, recorded revenue of £35.3 million for the full year ended 31 March 2023, representing 8% of Group revenue.

The consideration for the sale will be £1 million, with a further modest earn-out dependent on the future equity value of the business, payable in April 2028. The trade and assets will be transferred to Johnson Tiles Limited, a new company established by Managing Director Stephen Dixon and his management team. The sale is expected to complete in May 2024, following the conclusion of the customary employee consultation period. The proceeds of the sale will be used for general working capital purposes.

The CEO of Norcros PLC, Thomas Willcocks, stated, "This sale will allow Norcros to focus on and accelerate the execution of our growth strategy. Johnson Tiles UK has been a long-standing partner of the Group, and we thank them for their significant contribution. We wish Stephen and the team every success for the future."

The company also announced that one-off cash costs of less than £1 million associated with the sale, and non-cash balance sheet impairments of approximately £15 million, will be separately reported as exceptional items in their full-year results to 31 March 2024. Norcros will announce its full-year results for the year ended 31 March 2024 on 13 June 2024.

The sale of Johnson Tiles UK aligns with Norcros' strategic priorities, focusing on Portfolio Development, Organic Growth, Operational Excellence, and ESG. The company aims to ensure that its capital allocation is aligned accordingly, allowing it to accelerate the execution of its growth strategy. The sale will enable Norcros to concentrate on its core business and further its growth objectives.

The announcement contains inside information relating to a transaction by Norcros PLC, as per the Market Abuse Regulation (MAR) and Article 2 of Commission Implementing Regulation (EU) 2016/1055. For further information, the company has provided contact details for Norcros PLC and its external communications agency, Hudson Sandler.