Norcros voices fears over spending cuts

Shower and tile maker Norcros posted a 19% fall in full-year underlying pre-tax profit as it warned of the effect on consumer spending of cuts in the Budget.

The company, which operates primarily in Britain and South Africa, said it expected public sector investment to decline and private sector spending to remain muted.

For the year to March 31 its pre-tax profit before items fell to £3.4 million from £4.2 million pounds last year hit by a drop in demand in its South African markets. Revenue grew 10% to £169.6 million.

"Despite these challenging conditions, the group is in good shape with a strong balance sheet, following the recent capital raising, and resilient revenue driven by essential repair and maintenance activity," said chairman John Brown.

Norcros, which is a retailer of sanitary wares under the Johnson, Tile Africa and TAL brands, today named finance director Nick Kelsall as its next chief executive, who will step into the role on July 1 to eventually succeed Joe Matthews, who will retire on March 31 next year.