4 October 2012 – trading update
A trading update from Norcros has confirmed that revenues in the six months to 30 September should be around £106m (2011: £102.4m) with underlying pre-tax profits expected to be at least £5.9m (2011: £5.4m). Although trading conditions remain challenging, Johnson Tiles did particularly well helped by improved sales through B & Q – Triton Showers on the other hand saw revenues fall by 8%. Net debt at the end of the period is expected to have risen to £21m (2011: £18.1m) due to increased working capital requirements to fund the growth at Johnson Tiles. Although the group does not expect trading conditions to improve, the shares trade on a low p/e ratio of just 6.4x and with the group well-placed to benefit when the economy improves they remain a BUY.