LONDON (ShareCast) - Bathroom accessories firm Norcros said it expects underlying pre-tax profit to be flat following mixed trading but, despite ongoing tough market conditions, it remains confident in its full-year outcome.

Underlying pre-tax profit is expected to be approximately £6.0m for the 26 weeks ended September 30th 2013, unchanged from the previous year. Group revenue is expected to be in the region of £116m, up from £106.3m in 2012. This represents year-on-year growth of 9.1% on a reported basis and 15.5% on a constant-currency basis, the group explained.

The owner of Triton showers, Johnson Tiles and Vado, said on a like-for-like (LFL) basis, excluding Vado - which was acquired on March 31st - revenue fell 4.7% on a reported basis and was 0.9% higher on a constant-currency basis.

UK revenue for the period was 19.1% higher than last year but on a LFL basis, excluding Vado, was 5.0% lower.

Its South African businesses continued to see strong growth with revenue 12.1% higher on a constant-currency basis, after growth at all three of its businesses.

"The economic outlook in both South Africa and the UK is more positive in terms of construction activity and housing transactions, albeit this has yet to translate into a significant improvement in consumer confidence. Nevertheless, our South African businesses continue to deliver double digit constant currency growth, and we have experienced a stronger second quarter from both Triton and Vado," Norcros said in a company statement.

"The de-stocking seen in Johnson Tiles UK in the first half, together with the second-half weighting of cost reduction benefits will mean that group underlying operating profit will be more heavily weighted to the second half than normal," it added.

"The board remains confident of the full year outcome."




CJ

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