By Laura McGuire
Shares in Norcros rose slightly this morning after the bathroom and kitchen supplier showed signs of resilient trade amid a slowdown in the home improvement market.
Analysts at Shore Capital slapped a ‘Buy’ rating on the stock after the London-listed firm revealed a slightly better-than-expected profit for the period.
Operating profit came in at £39.9m in the year ending March, up 45 per cent on last year.
However, revenue slipped 11 per cent to £392.1m as the company was impacted significantly by market conditions, including power interruptions in the first half of South Africa.
Meanwhile, in the UK and Ireland, the firm recorded an underlying profit of £38.4m, up over £1m on last year’s figure.
Thomas Willcocks, chief, said: “I am delighted with the performance over this period and excited by the significant opportunities that remain in the more resilient mid-premium market segments that we hold leading positions in.
“Our strategy is building from a position of strength and scale as we actively leverage the customer and operational synergies within the group.”
The firm held its guidance for the year.
Shares in Norcos have jumped 13 per cent year-to-date despite the very public challenges faced by home retailers as shoppers are feeling the pinch.
Analysts at Shore Capital, said: “Norcros’s UK businesses showed resilience with LFL sales down 3.3 per cent , which we believe is a better outturn than the majority of listed peers and the overall market, due to its positioning in the more resilient mid premium segment of the RMI market.”
