REG - Norcros PLC - Sale of Johnson Tiles UK

NorcrosAnnouncement

25/04/2024 07:00

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RNS Number : 9155L  Norcros PLC  25 April 2024

25 April 2024

Sale of Johnson Tiles UK

 

Norcros plc ("Norcros" or the "Group"), a market-leading designer and supplier
of high quality bathroom and kitchen products in the UK, Europe and South
African markets, today announces that following a strategic review, it has
entered into an agreement to sell Johnson Tiles UK to its existing management
team.

 

Johnson Tiles UK, based in Stoke-on-Trent UK, designs, manufactures and
sources ceramic floor and wall tiles. For the full year ended 31 March 2023
Johnson Tiles UK recorded revenue of £35.3 million, representing 8% of Group
revenue, made an operating profit of £0.5 million representing 1% of Group
underlying operating profit, had gross assets of £25 million, and has
absorbed cash in each of the last three years.

 

Consideration for the sale will be £1 million, with a further modest earn out
being dependent on the future equity value of the business, with both payable
in April 2028. The trade and assets are to be transferred to Johnson Tiles
Limited, a new company established by Managing Director, Stephen Dixon, and
his management team. The sale is expected to complete during May 2024 after
the conclusion of the customary employee consultation period. The proceeds of
the sale will be used for general working capital purposes.

 

One off cash costs of less than £1 million, associated with the sale, and
non-cash balance sheet impairments of c. £15 million will be separately
reported as exceptional items in our full year results to 31 March 2024.
Johnson Tiles Limited will continue to be based at the Stoke-on-Trent site,
which will be retained by the Group.

 

Norcros will announce its full year results for the year ended 31 March 2024
on 13 June 2024.

 

Thomas Willcocks, CEO of Norcros plc, said:

 

"In June 2023, we communicated our strategic priorities, namely Portfolio
Development, Organic Growth, Operational Excellence and ESG and we will
continue to ensure that our capital allocation is aligned accordingly. This
sale will allow Norcros to focus on and accelerate the execution of our growth
strategy. Johnson Tiles UK has been a long-standing partner of the Group and
we thank them for their significant contribution. We wish Stephen and the team
every success for the future."

 

Note:  For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this Announcement contains inside information
relating to a transaction by Norcros plc.  This Announcement is being made on
behalf of the Company by Richard Collins, Group Counsel and Company Secretary.

 

Enquiries

 Norcros plc                                Tel: 01625 547700
 Thomas Willcocks, Chief Executive Officer
 James Eyre, Chief Financial Officer

 Hudson Sandler                             Tel: 0207 796 4133
 Nick Lyon

 Lucy Wollam-Coles

Notes to Editors

Norcros is a market-leading designer and supplier of high quality bathroom and
kitchen products in the UK, Europe and South African markets.

 

In the UK, Norcros operates under seven brands, Triton, Merlyn, Grant
Westfield, Vado, Croydex, Abode, and Johnson Tiles.

 

In South Africa, Norcros operates under four brands, Tile Africa, House of
Plumbing, TAL, and Johnson Tiles.

 

Norcros is headquartered in Wilmslow, Cheshire and employs around 2,300
people. The Company is listed on the London Stock Exchange. For further
information please visit the Company website: http://www.norcros.com
(http://www.norcros.com)

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