Revenues are expected to be around 15% higher YoY at £271m after a bumper currency boost
Companies: Norcros plc
Shares in bathroom supplier Norcros rose 8% early on Wednesday after the AIM-listed smallcap posted a decent trading update for the full-year to 31 March, saying group operating profit and revenue was expected to be in-line with the Board's expectations.
Underlying operating profit for the year is anticipated to be in line following robust and "resilient" performance, with revenues expected to be around 15% higher YoY at £271m after a bumper currency boost.
The firm's EPS growth is fairly decent, with a 5-year CAGR of 13%, but it has stuttered slightly in FY17. Its FY17 normalised EPS is expected to be similar to 2016 at 25p, with 8% growth to 27p/share in FY18.
UK revenue was up nearly 12% YoY, reflecting a stronger H2 and the success of some of its acquisitions. On a like-for-like basis, UK revenue rose just 1.8% (8.3% in H2, -5% in H1).
CEO Nick Kelsall said he was pleased with the performance during the year, adding that the firm was closely monitoring market conditions and proactively managing its cost base and deployment of capital:
"The Group expects to deliver its eighth consecutive year of revenue and underlying operating profit growth during a period of variable trading conditions. This demonstrates the success and resilience of the Group's business portfolio and operating model.
The Group continues to focus on growth, both organically and via acquisitions. It is particularly pleasing to note the strong performances from our South African operations and the acquired businesses of Vado, Croydex and Abode. We continue to actively pursue complementary opportunities in line with our stated strategy."
Shares in Norcros had been trending down lately, losing 20% from its 8 December highs before rallying 12% since the end of March.
