10 April 2019 – trading update

A trading update has been released ahead of final results, due out on 12 June.  Group underlying operating profit for the year is expected to be in line with expectations, reflecting a very resilient performance in the context of particularly challenging conditions in the major markets addressed. This will represent a tenth consecutive year of revenue and underlying operating profit growth.  Group revenue for the year is expected to be in the region of £331m (2018: £300.1m), 10.3% higher than the prior year on a reported basis.  Net debt at 31 March 2019 is expected to be around £36m (2018: £47.1m), reflecting strong cash generation in the second half of the year.  Norcros completed the acquisition of the South African based business RAP Plumbing Supplies (Proprietary) Limited on 1 April 2019 and will consolidate the financial results of the business from this date.  The shares continue to look cheap and we keep our BUY rating.