The Herbal Medicated Bath – Naturopathic Doctor News and Review

Read article : The Herbal Medicated Bath – Naturopathic Doctor News and Review

Sussanna Czeranko, ND, BBE

Even three days after using the [pine needle] bandage, one can smell the rosin which is most agreeable. It is a theory of mine that when the system needs certain things, it can absorb them through the pores.

                                       Sebastian Kneipp, 1909, p.628

All herb baths are prepared in the same manner as the hayflower baths.

                                       Puderbach, 1927, p.282

Traces of turpentine are found in the urine after a hot bath containing the natural oil of pine which has entered the system through absorption or inhalation of vapor, or both.

                                       Elene, 1935, p.272

Baths of many types have been used for eons for purposes of health. The “bath” as a healthy and social dimension shows up often in the history and repertoire of Traditional Chinese Medicine, for example, and in many accounts of the splendid baths scattered throughout the Roman Empire (such as the “Theomoe” or warm baths of Diocletian), or the historical Vapor Baths of the Turks in Constantinople. However, the term “medicated bath” begins to appear as such and with more frequency in the 19th century. Cruchley’s 1834 history of London included details of bathing establishments throughout the city, such as Suffolk Place in Pall Mall, where one could find an “a very complete establishment of warm, cold, shower, vapour and general medicated baths” (Cruchley, 1834, p.169). T. S. Lambert’s Bathing and The Bath, published in 1845, was a delightful exegesis on “bathing and the bath, simple and medicated,” in which this early medical doctor differentiated between basic bathing and “medicated bathing.” John Bell, in his 1850 seminal work A Treatise on Baths, describes a bath using water other than fresh water or tap water. Bell writes, “Natural medicated baths are those furnished by the waters of mineral springs.” (Bell, 1850, p.615) The practice was long common that when mineral waters were not available, “medicated” baths were artificially created using minerals and salts to mimic Nature. Mineral bath was also a term used for baths that were enhanced with herbal decoctions such as pine extracts, equisetum, oat straw, hayflowers (see my May 2016 NDNR article, “The Head & Food Vapor Baths”), etc. Guy Hinsdale (1910) included herbs in the preparation of baths and other water applications, and called these “medicated” or “modified” baths. Not surprisingly, our early naturopathic pioneers were fully aware of this enhanced dimension of hydrotherapy.

Kneipp & Herbal Baths

Sebastian Kneipp is well recognized as a giant in the promotion of water cure. He was also profoundly interested in the use of plants, both for ingestion and to enhance his water applications. His combining of curative plants with water therapies was severely criticized by the extreme orthodox adherents of the hydrotherapy. (Platen, 1901, p.296) His 3 most used bath herbs included shave grass [Equisetum arvense], oat straw [Avena sativa] and hayflowers, or the dregs of a hay stack. Hayflowers was introduced by Kneipp as one of his celebrated herbal wonders, used for young children and the aged. Louisa Lust, following in the footsteps of Kneipp, also used herbs at her Butler Yungborn. She found that herbs used in baths were very beneficial for nervous people. She used “sage, hayflower, oak bark, pine needle, fenugreek, yarrow and others.” (Lust, 1911, p.231) After any of the herbal baths, Louisa Lust counsels the correct way to bring the water application to an end: “The [herbal] bath should always be wound up with a cool ablution, so as to close the pores and prevent cold.” (Lust, 1911, p.231)

John Bell’s mid-19th century work provides a recipe for an emollient bath using an herbal formula. He says, “An emollient bath is made by first taking althea, marshmallow, and elder flowers, or the pith of sassafras, and the bark of slippery elm, four pounds, and of flaxseed, half a pound; then tying them loosely in a cloth, and boiling the bag, add the decoction to the water of the bath.” (Bell, 1850, p.633)

To make Kneipp’s famed hayflower decoction, “a little [cloth] bag [is] filled with hay flowers, thrown into a pot of boiling water, and left there to infuse for at least fifteen minutes.” (Kneipp, 1891, p.38) The hayflower decoction was essentially left to steep until the desired dark coffee-like color was attained. Its property of opening up skin pores and promoting the elimination of morbid matter was much prized by Kneipp and others. Platen recounts Kneipp’s advice on the hayflower bath: “Kneipp advises taking the bath only once or twice a month and not to prolong a single bath beyond half an hour.” (Platen, 1901, p.558) Warm water applications always finished with cold water. Platen used alternating warm and cold water bathing. The herbal warm bath would last about 10 minutes and immediately followed by 5 or 6 seconds in a cold bath, and repeated 2 or 3 times. (Platen, 1901, p.558)

Warm Sitz Baths

Kneipp used herbal decoctions for warm water applications, and pure cold water was more than sufficient to achieve its therapeutic outcomes. In regards to a warm sitz bath, Kneipp asserts, “The warm sitz bath is never prepared of warm water alone, but according to my system is always mixed with some other ingredient.” (Kneipp, 1891, p.32) Equisetum was added to the sitz bath to treat “diseases of the bladder and kidneys, in gravel and stones complaints.” (Kneipp, 1891, p.33) Oat straw was used to treat gout and rheumatic conditions, and when Kneipp did not have access to these 2 herbs, he relied upon hayflowers. The sitz bath with hayflowers was a general treatment and was efficacious in cases of boils, constipation, hemorrhoids, and spasmodic pains such as colic. (Kneipp, 1891, p.33)

Foot Baths

Hayflower added to a bath such as a foot bath offered relief “in many foot complaints: open wounds, bruises, boils, putrefaction of the toes and suppuration of the nails.” (Kneipp, 1891, p.29)

Another one of Kneipp’s favorite herbs used in baths was oat straw. He describes the preparation: “The straw is boiled for half an hour, and then used as a foot bath from 20 to 30 minutes, at a temperature of from 88° to 91° F/31° to 33° C.” (Kneipp, 1891, p.29)

Equisetum was prepared much like the hayflowers – steeped for at least 15 minutes. The decoction used as a wash on “poisoned wounds… had a cleansing effect.” (Platen, 1901, p.472)

Gout

Friedrich E. Bilz, following in the footsteps of Sebastian Kneipp, used many of the same herbs in his herbal baths as his esteemed mentor. Bilz used a decoction made with pine needles for the treatment of gout. “Warm baths of 95° to 101° F/35° to 38° C with a decoction of pine sprigs or hayseed are also recommended.” (Bilz, 1898, p.780) For gout, the primary objective was to increase blood circulation, which hydrotherapy was excellent at producing. Bilz recommended the following gout protocol: “Three cold full washings a week, on first getting out of bed; or three knee gushes, two half baths of the upper body, and the warm hayflower shirt once, will probably command success.” (Bilz, 1898, p.780)

Making a strong decoction from the hayflowers, a compress would be soaked in it and applied while warm on “affected or swollen parts every two or three hours, [or] hayflower is scalded with hot water, enclosed in cloth and laid on the diseased part.” (Bilz, 1898, p.780)

The hydrotherapies were also complemented with herbal teas “of primroses, elder berries or elder blossoms several times a day. Gouty patients are also recommenced to continue for some time to drink a tea made of mouse ear [Hieracium pilosella].” (Bilz, 1898, p.780)

Pine Needle Baths

Kneipp also endorsed the use of pine needles for bathing. Used in a bath, the pine decoction provided benefits to the kidneys and bladder, and the skin epidermis was restored to health. (Kneipp, 1891, p.38) Kneipp also credited pine baths for strengthening the interior blood vessels, thereby making this “the proper bath for more aged people.” (Kneipp, 1897, p.65)

Kneipp favored using fresh pine needles for his water therapies. To make a pine needle bath, pine needles and branches were picked fresh or a distillation would be made. M. Platen provides instructions: “The pine needles are boiled for at least half an hour, and the decoction is then ready for use.” (Platen, 1901, p.472) The pine “extract, also called pine balsam is almost transparent, of a yellowish tinge at first, turning a greenish brown after standing some hours; has a pleasant, refreshing, bracing, resinous, aromatic smell.” (Platen, 1901, p.559) Compresses made from the decoction were strengthening and stimulating to the skin. (Platen, 1901, p.472)

In the July 1935 issue of Nature’s Path,another magazine published by Lust, the author of an article on the topic of pine needle oil, writes: “Pine oil is classified medicinally as a rubifacient, being slightly an irritant, and possesses feeble antiseptic properties. The irritant properties cause an unusual circulation of blood and thereby relieves congestions, eases pain, and quiets nervous tension.” (Elene, 1935, p.252, 270)   She warns against synthetic pine oils. “If the oil has been saponified or chemically combined with alkali, much of the effectiveness will have been lost. Artificial pine odors or scents have no therapeutic value in a bath.” (Elene, 1935, p.270)

John H. Kellogg placed the pine needle bath under the subheading of “Miscellaneous Baths” at the end of his voluminous book, Rational Hydrotherapy. Kellogg used pine needles to achieve the same reactions induced by the carbonic acid [or carbon dioxide] baths. The carbon dioxide bath, or the Nauheim bath, was popularized by many of the early hydrotherapists, such as Simon Baruch, Kellogg and Hinsdale. Carbon dioxide baths are still currently used extensively in European spas to treat heart disease, diabetes, rheumatic conditions, and obesity. Guy Hinsdale also used pine needle extract in combination with the effervescent carbon dioxide bath.

Kellogg states, “This [pine needle] bath produces powerful cutaneous stimulation. It is useful in chronic renal and cardiac disease, at a temperature of 92° to 94° F/33° to 34° C and may be used in the place of the effervescing baths.” (Kellogg, 1903, p.955) Among the benefits of the pine bath, Platen included “scrofula, gout, rheumatism, paralysis, debility, skin complaints, abdominal and sexual disorders.” (Platen, 1901, p.559) Pine baths improved the functions of the emunctories, such as the kidneys, gastrointestinal tract, and the skin.

Puderbach agreed with Platen that a 30-minute pine needle bath was beneficial for rheumatism, and suggested the “temperature should be high for rheumatic ailment (40° C/104° F).” (Puderbach, 1925, p.154) Puderbach also used the pine needle bath for nervous conditions at lower temperatures, of 28° C/82° F for 20 minutes. (Puderbach, 1925, p.154)

Elene recommended the pine bath for insomnia. A hot pine bath “taken before retiring will induce a quiet restful sleep without resorting to medicines or drugs.” (Elene, 1935, p.270, 272) She states, “When a person is fatigued and tired a cool pine bath has an exceptional bracing tonic effect.”

Hinsdale used pine needle essential oil in steam baths, and patients were steamed for 20 to 30 minutes in a steam cabinet, which caused profuse perspiration. (Hinsdale, 1910, p.309) After the steam bath, patients were massaged. Hinsdale also used pine needle extract in a medicated bath using 2 ounces of the extract to a 40-gallon bath. (Hinsdale, 1910, p.309)

1. Puderbach in 1925 wrote The Massage Operator, which was published by Benedict Lust. Puderbach was the director of the Brooklyn Massage Training School. His book was essentially a physical therapy manual. Every conceivable physical therapy was outlined in his book. Throughout the years of Benedict Lust’s journals, numerous ads appeared with pine constituents for the pine bath. Puderbach alludes to one of these products – Novopin – which was a pine salt. Instructions for a bath using this salt: “For a tub bath take a full tube of this salt. The temperature of the bath should be 28° to 30° C/ 82° to 86° F. The bath should last 20 to 30 minutes.” (Puderbach, 1925, p.154) Another method that Puderbach suggests for taking the pine bath: “For a tub bath take a large spoonful of pine needle extract, dissolve in a pail of boiling water, and pour this solution into the prepared bath, or take one or two spoonfuls of pine oil, dissolve this in 100 grams pure alcohol and add to the bath.” (Puderbach, 1925, p.154)

Pine needle baths could irritate the skin, thus Puderbach advised that those patients experiencing itching of skin be removed from the bath immediately and given a shower. A rice powder was applied to the itching areas. (Puderbach, 1925, p.154)

A Valuable Legacy

These remarkable Naturopaths and their predecessors have left us a superb legacy of treatment protocols and success stories so valuable for patients. In our era of polypharma and a compromised food supply and distribution system, these wonderful natural approaches to healing are timeless. Kneipp, Kellogg, Bilz, Elene, Hinsdale, Puderbach and other giants have left us with outstanding tools. All we need do is use them.

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Sussanna Czeranko ND, BBE, incorporates “nature-cure” approaches to primary care by including balneotherapy, breathing therapy, and nutrition into her naturopathic practice. Dr Czeranko is a faculty member working as the Rare Books curator at NCNM and is currently compiling a 12-volume series based upon Benedict Lust’s journals, published early in the last century. Her published books include: Origins of Naturopathic Medicine; Philosophy of Naturopathic Medicine; Dietetics of Naturopathic Medicine; Principles of Naturopathic Medicine; Vaccination and Naturopathic Medicine; and Physical Culture in Naturopathic Medicine. Dr Czeranko is the founder of the Breathing Academy, a training institute for naturopaths to incorporate a scientific model of breathing therapy called Buteyko into their practice. She is also a founding board member of the International Congress of Naturopathic Medicine and a member of the International Society of Medical Hydrology.

References

Bell, J. (1850). A Treatise on Baths. Philadelphia, PA: Barrington and Haswell, pp. 658.

Bilz, F. E. (1898). The Natural Method of Healing. Leipzig, Germany: F. E. Bilz Publishing, pp. 2065.

Cruchley, G. F.(1834). Cruchley’s Picture of London. 2nd Ed. London, England: G. F. Cruchley Publishers.

Elene. (1935). The soothing pines. Nature’s Path. New York, NY: Benedict Lust Publishing, XXXX (7), 252, 270, 272.

Hinsdale, G. (1910). Hydrotherapy.Philadelphia, PA: W. B. Saunders Company Publishing, pp. 466.

Kellogg, J. H. (1903). Rational Hydrotherapy.Philadelphia, PA: F. A. Davis Company Publishers, pp. 1193.

Kneipp, S. (1891). My Water Cure.London, England: William Blackwood and Sons Ltd, pp. 272.

Kneipp, S. (1897). My Water Cure.Authorized American Edition translated from the 118th German Edition. Kempten, Bavaria: Jos Koesel Publisher, pp. 393.

Kneipp, S. (1909). Bandages and compresses. The Naturopath and Herald of Health,XIV (10), 624-632.

Lambert, T. S. (1845). Bathing and the Bath, Simple and Medicated: Its History, Effect and Mode of Application. Troy, New York: J. C. Kneeland Press.

Lust, L. (1911). Water cure, water applications. The Naturopath and Herald of Health,XXI (4), 231, 233.

Platen, M. (1901). The New Curative Treatment of Disease. London, England: Bong & Co, pp. 1579.

Puderbach, M. (1901). The Massage Operator. Butler, NJ: Dr. Benedict Lust Publishing, pp. 180.

Puderbach, P. (1927). Medicinal baths and their preparation. Naturopath,XXXII (5), 243-246.

‘Fairytale’ Irish castle ranked in 25 best travel experiences in the world

Read article : ‘Fairytale’ Irish castle ranked in 25 best travel experiences in the world

A “fairytale” experience at Ashford Castle has been listed as one of the 25 best travel experiences in the world.

The listing was compiled by US travel advisor Chad Clark, who is aiming to certify travel “experiences” to create an annual list similar to what the Michelin Guide is for restaurants.

“You have the Forbes Travel Guide for hotel star ratings and Michelin for restaurants and Golf Magazine for the Top 100 courses, but there is nothing like that for experiences and that’s what everyone is looking for today,” he says. The ‘Certified 25’ is the “first of its kind in the travel industry”, he says, and the aim is to create an annual list of the best travel experiences around the world.

Experiences - and “experiential travel” - are the current buzzwords travel industry. For the ultimate travel bragging rights, it’s no longer enough to book a luxury hotel room in the five-star hotel with the best views of whatever piazza you happen to be in. Now it’s about “making memories through experiences”, according to travel advisors. Travellers want to actually do, see or learn something while on a trip, as opposed to lazing by the pool. It’s no surprise that the trend is particularly evident in the luxury travel market with wildlife safaris, Arctic cruises and active travel with learning experiences, such as photography courses, all on the increase.

Airbnb is also building on this momentum with its “experiences” section, where travellers can link up with locals in cities around the world. Other similar initiatives include Cool Cousin, which is soon to launch in Dublin. The Cool Cousin app provides a profile of locals who you can select according to your interests. You then receive their map of their city ,which is loaded with at least 25 of their favourite places, from restaurants to shops, as well as personalised advice.

Despite all the interest in the area, Clark believes it is hard to find the “best in class” experiences – there is no gathering of five-star experiences, which is where his “Certified 25” come in. The winners of the first annual listing were announced at the Virtuoso Travel Symposium in Las Vegas earlier this week. Virtuoso is a consortium of luxury and specialist travel advisors and agents and many of Clark’s listings are affiliates of the network, which has about 1,700 affiliates around the world.

Clark owns the Phoenix-based Chad Clark Travel Ventures. To create the Certified 25, he surveyed luxury travel industry suppliers and other travel experts, who submitted their best experiences from around the world. The winners were “chosen on their own merits of how cool the experience actually is”, he says. Reader beware however – money is no object when it comes to Clark’s definition of a “cool” experience.

A private showing of The Quiet Man in the 32-seat cinema at Ashford Castle is included in its fairytale experience – with Champagne and popcorn of course

Ireland’s sole listing is the “Ashford Castle Fairytale experience”. It includes private chauffeur transfers from the airport; two nights in a Stateroom; afternoon tea in the Connaught Room; falconry; a private showing of The Quiet Man in the 32-seat cinema at the hotel, with Champagne and popcorn of course; dinners in the Dungeon and George V restaurants; wine tasting; and meeting the estate’s Irish Wolfhounds. The price of your fairytale? From €4,350 in low season to €6,350 in high season.

General manager Niall Rochford says the castle is “privileged to represent Ireland and Irish tourism internationally as the only Irish property to be included in this inaugural list”. He describes Clark as someone “who has himself carved a career as a highly regarded and influential travel expert worldwide”.

“Our Fairytale Castle Experience offers guests the chance to experience the magic of Ashford Castle, offering the utmost in modern luxury and five-star hospitality in the unique setting of this historic castle.”

In Sydney, Clark’s list recommends you contact husband and wife team Jamie and Alex, aka Local Eyes Sydney, to give you the quintessential Sydney experience. This involves starting your day with early morning yoga or surfing on the beach before breakfast, National Park bush and beach walks. Jamie and Alex bring guests to their home for lunch and drinks before sailing to see Sydney Harbour’s icons up close from their classic cruiser, Iluka. The nine-hour “quintessential” experience will set you back €4,183 for two people, more than what most of us will spend on a 10-day trip Down Under. (Price comparison note: Flights from Dublin to Sydney average at €1,100 per person.)

For those with even deeper pockets (or a second home to sell) who also have an ethical travel conscience, safari company Singita offers a behind-the-scenes stay in their lodge and Sabora Tented Camp in Tanzania.

Grumeti Black Rhino Project, learning about their anti-poaching unit and local enterprise development" height="348" src="https://www.irishtimes.com/polopoly_fs/1.3189875!/image/image.jpg_gen/derivatives/landscape_620/image.jpg" width="620" /> A six-night safari with Singita Safaris in Tanzania includes working with Grumeti Black Rhino Project, learning about their anti-poaching unit and local enterprise development

The experience includes learning about their wildlife re-introduction efforts, through the Grumeti Black Rhino Project; working with their anti-poaching unit first-hand; learning about their new canine law enforcement unit as well as their fund of local enterprise development. As for the cost…take a deep breath. The six-night experience costs €6,305 per person, which might not seem too wild for a luxury six-night safari experience. However, there is also a compulsory contribution of €42,500 ($50,000) per booking to support Singita’s conservation programmes. It is based on a minimum of two people and the maximum group size is six.

You might be glad to find out that the list also includes more affordable items to enhance your travel experience wherever it may be, such as the Kickstarter crowd-funded G-RO Smart Carry-on luggage.

features USB ports and a powerful battery, lightweight design, and a patented larger wheel making it easier to wheel on all terrain" height="348" src="https://www.irishtimes.com/polopoly_fs/1.3189874!/image/image.jpg_gen/derivatives/landscape_620/image.jpg" width="620" /> G-RO Smart Carry-on luggage (from €380) features USB ports and a powerful battery, lightweight design, and a patented larger wheel making it easier to wheel on all terrain

The bag (from €380, g-ro.com) features smart technology such as USB ports and a powerful battery, slick lightweight design, as well as a patented larger wheel concept that means a bag that is easier to wheel on all terrain - from cobbled streets to airport walkways.

Photography company Flyographer (flytographer.com) also features. The company, founded in 2013, links travelers with professional photographers in more than 130 destinations so you can abandon your selfie stick and instead use a professional photographer to capture your holiday snaps…for a fee of €210-€550 depending on the number of locations and length of the session.

Other immersive experiences include a volcano adventure with Four Seasons Hualalai; Mongolia’s Golden Eagle Festival with Nomadic Expeditions; an overnight Yurt stay at Platte Canyon with Brush Creek Ranch Luxury Collection; and a banquet on a remote section of the Great Wall of China with conservationist William Londesay.

See the full list below, or for more details, chadclarksertified.com

Top 25 Travel Experiences in the World (for those with very deep pockets)

Cong, Ireland: Ashford Castle’s Fairytale Experience includes a “luxurious stay in a medieval Irish castle where guests are invited to take part in authentic Irish activities throughout the castle and its picturesque grounds”.

London, UK:Travel company Noteworthy - who create “unforgettable Exquisite British Experiences” - allow clients behind-the-scenes access to the “Changing of the Guards” and the opportunity to photograph the event.

London, UK: The Beaumont Hotel in London offers a ‘do-it-yourself’ ice cream sundae with 300 potential permutations in the resort’s Colony Grill Room. For Clark, this is (thankfully) only part of the luxury offering at the Beaumont, which adding personal touches to all client stays.

ice cream sundae with 300 potential permutations in the resort’s Colony Grill Room" height="348" src="https://www.irishtimes.com/polopoly_fs/1.3189870!/image/image.jpg_gen/derivatives/landscape_620/image.jpg" width="620" /> The Beaumont Hotel in London offers a ‘do-it-yourself’ ice cream sundae with 300 potential permutations in the resort’s Colony Grill Room

Bhutan:Amankora Bhutan’s spiritual and cultural safari involves walks through ancient rhododendron forests watching black necked cranes, soaking in a hot stone bath; interacting with novice monks and dining in a rustic stone potato shed.

Wyoming, US: Platte Canyon Overnight Camp at Brush Creek Ranch is a luxurious camping experience that includes private outdoor activities, gourmet meals around an open fire, a large yurt and two traditional teepees with large decks located over the North Platte River.

New York, US:Chatwal Hotel guests can enjoy insider access to Broadway from the landmark building once home to the oldest theatrical club in the US. Guests have the opportunity to be part of the cast of a Broadway show.

Italy:Rosa Alpina Hotel bring guests on a journey through the Dolomite Mountains where guests hike in luxury from “hut to hut” while enjoying the gourmet food and wines.

Colorado, US:Limited “only by the imagination”, Colorado’s Dunton Hot Springs offers customizable experiences that are specifically tailored for each guest’s interests, including cattle driving, and horse riding.

Flytographer:Flytographer connects travelers with vetted local photographers for short, candid vacation shoots in over 200 cities around the world, providing both an authentic travel experience and unforgettable souvenirs.

Hawaii, US:The Four Seasons Hotel Hualalai offers a volcano with a private helicopter journey over the big island, a trip to a Rainforest Cottage Hideaway where you can hike, swim, explore the area around the volcano.

New York, US: The Greenwich Hotel offers a fully complimentary minibar in all rooms. This includes v “vintage favorite goodies” reminiscent of childhood combined with trendy new snacks with all-natural, vegan and gluten-free options. By the way, this is a mini-bar with a difference. Alcohol is excluded.

Utah, US: A stay at the Waldorf Astoria Park City offers beautiful snow-covered views of the largest ski and snowboard resort in the US. Don’t forget to take their signature vanilla mint chapstick on all adventures, according to Clark.

G-RO Luggage: G-RO luggage is specifically designed to accompany on-the-go travelers whether they are traveling around the block or around the globe.

China: With Imperial Tours, guests travel by helicopter over the Great Wall of China, landing at an isolated tower for a gourmet banquet with conservationist William Lindesay, who helped draft the law protecting wall.

France: Indulge in a progressive Parisian culinary journey at Le Bristol Paris, where they experience the French Art de Vivre, a decadent breakfast, a tailor made picnic and dinner at Michelin three-star restaurant, Epicure.

France:A meal at Les Prés d’Eugénie-Michel Guerard is described as capturing “the essence of French luxury, style, grace and elegance in a sumptuous setting”.

Ecuador: Metropolitan Touring offer a nighttime walk through the forest in search of nocturnal amphibians and insects, ending with a surprise (well, it was meant to be a surprise) picnic.

Minaret Station, New Zealand:Travel company Minaret Station bring clients on a helicopter tour of the Southern Alps in New Zealand before touching down in a deserted alpine meadow. Then it’s time to enjoy a gourmet spread of lobster pulled fresh from the sea, Minaret Station-sourced beef and lamb and award-winning New Zealand wines.

Mongolia: Watch Kazakh hunters at the Golden Eagle Festival in the remote Altai Mountains as these skilled hunters and their highly-trained eagles compete for the top prize. Nomadic Expeditions arrange this experience.

Amalfi Coast, Italy: Hotel Palazzo Avino’s “Sea of Love” dining experience aims to suspend guests between land and sea. Start with a boat trip to your private candlelit dinner overlooking the ocean.

Hotel Palazzo Avino’s “Sea of Love” dining experience aims to suspend guests between land and sea." height="348" src="https://www.irishtimes.com/polopoly_fs/1.3189871!/image/image.jpg_gen/derivatives/landscape_620/image.jpg" width="620" /> On the Amalfi Coast in Italy, the Hotel Palazzo Avino’s “Sea of Love” dining experience aims to suspend guests between land and sea.

Peru:Experience the mystical beauty of Peru’s Lake Titicaca, the cradle of Andean civilization, through visits to a traditional community on the island of Taquile and hiking ancient trails surrounded by stunning snow-capped mountain landscapes.

Tanzania:Singita safari company offer behind-the-scenes insight into the work of the Anti-Poaching Unit in the Serengeti.

Singita Safaris offers a behind-the-scenes stay in their lodge and Sabora Tented Camp in Tanzania – once you make a $50,000 ‘donation’ to their wildlife preservation work" height="348" src="https://www.irishtimes.com/polopoly_fs/1.3189876!/image/image.jpg_gen/derivatives/landscape_620/image.jpg" width="620" /> Singita Safaris offers a behind-the-scenes stay in their lodge and Sabora Tented Camp in Tanzania – once you make a $50,000 ‘donation’ to their wildlife preservation work

India:Guests of the Ultimate Traveling Camp at Thiskey enjoy a day “on top of the world” where they are immersed in the region’s unique rituals and have the opportunity to try their hand at archery, raft down the Indus River and enjoy a picnic lunch.

Australia: True North conducts adventure-cruises in Australia’s stunning Kimberley region, with daily off-ship activities, some via the ship’s onboard helicopter.

Australia:Tour Sydney with husband and wife team Jamie and Alex (aka Local Eyes Sydney) who invite guests to their home for lunch and onboard their classic cruiser, Iluka to sail up close to Sydney Harbor’s icons. The tour also includes a native bush walk and opportunities to surf, stroll or perform yoga at the world famous Manly Beach.

Wheelchair users forced to abandon UK summer holiday plans, says Muscular Dystrophy UK

Read article : Wheelchair users forced to abandon UK summer holiday plans, says Muscular Dystrophy UK

These are the shocking findings of a new investigation by Trailblazers, a network of young disabled people and their supporters which is part of Muscular Dystrophy UK and which surveyed over 100 people between 17 July and 14 August 2017.

The main findings of the survey found that:

• 8 in 10 (almost 80%) of young disabled people have been unable to go on holiday in the past five years because of the lack of hoist facilities in hotels.
• Over 35% of those surveyed show that young disabled people don’t go anywhere overnight because of the lack of hoists.
• There are only 18 known hotels in the UK with ceiling hoists available for use free of charge according to one trusted website used by many disabled people.

The investigation found that many disabled users were forced to abandon their summer holiday plans and stay at home. It found that access to hoists in hotels which are a basic requirement for wheelchair users, either ceiling hoists or hoists for hire, is at best scarce and in many cases not available.

Hoists are a basic requirement which allows disabled users to transfer out of their wheelchair into bed or the bathroom when they cannot independently transfer. The complications when organising a holiday to ensure accessibility to hoists means planning can be stressful and lead to anxiety and uncertainty. What should be a pleasant break turns into an insurmountable chore. It is also a big problem for disabled users when having to travel for work, whether that be overnight stays or just a few days.

Moreover this is bad for business for the hotel industry as the collective spending power of disabled people has been estimated at £249bn to the economy.

The Trailblazers investigation also included a mystery shopping exercise (on 9 August, 2017) which found that only one hotel out of 20 was able to offer a free hoist for those who needed it. Other problems included:

• Many hotel staff not knowing what a hoist was used for
• One hotel when asked if they had a hoist for transferring from wheelchair to bed was unsure if they did, but said they had a hoist for use at the swimming pool
• One major hotel chain recommending to wheelchair users to bring their own hoist but admitting their beds were unsuitable for use with a portable hoist

Lucy Watts is a member of Trailblazers from Essex and a wheelchair user since 2008. She has a muscle-wasting condition and can’t safely transfer so has to be hoisted. She said:

“I haven’t stayed away from home since losing the ability to transfer and I’ve been unable to stay overnight purely because of the hoist issue. Hotels having hoists would mean I’d be able to take trips away. I’d be able to attend more conferences – many of which require an overnight stay – which would open up more doors in terms of my voluntary work.

“Having faced multiple issues with hotels, I’ve been put off staying overnight – even if we rented a hoist, I haven’t had the confidence to take the risk of not knowing whether the place will be accessible. However, if I knew every hotel had a fully accessible room with available hoist, I would definitely have the courage to branch out and do overnight trips.

“Disabled people face enough barriers in life. We shouldn’t be prevented from enjoying trips away because hotels won’t always make the effort to be fully accessible and inclusive.”

Nic Bungay, Director of Campaigns, Care and Information at Muscular Dystrophy UK, said:

“These figures are truly disappointing as it means many disabled people are not able to visit some of our most popular destinations. Muscular Dystrophy UK believes there are some immediate steps the tourist industry and government could take to improve provision.

“The tourist industry should provide staff training with disabled people so that their staff know what a hoist is and are aware of their policy regarding helping disabled people get a hoist for their stay. Government could provide increased funding so businesses can access funds to install hoists in hotel rooms. And local authorities could provide financial and planning advice or permission to ensure that access is at the centre of all major renovations and new buildings.

“If these measures were implemented immediately it would greatly increase access to hotels for wheelchair uses wishing to travel.”

Notes to editors

Hoists in hotels – an investigation

Key findings

• 8 in 10 (almost 80%) of respondents have been unable to go on holiday because of the lack of hoist facilities in hotels in the past 5 years.

• Over 85% can use a mobile hoist if necessary.

• According to Ceiling Hoist Users Club[1] which is a well trusted website which many disabled people refer to when looking for somewhere accessible to stay, there are only 18 known hotels in the UK with ceiling hoists available for use free of charge.

Other key statistics

• Almost 15% cannot use a mobile hoist to transfer if a ceiling hoist is unavailable

• Over 35% of survey respondents don’t go anywhere overnight because of the lack of hoists.

• Over 25% of survey respondents only stay in accommodation that supplies hoists (either ceiling or portable).

• Over 35% of survey respondents are forced to take their own portable hoist on holiday with them.

• 9 out of 10 respondents said if a hotel had a complimentary mobile hoist it would incentivise them to stay there.

• Almost 30% of survey respondents would be willing to travel over 50 miles from their chosen destination if the hotel had a hoist.

Hotel Survey

The Trailblazers survey asked respondents to rate their experiences for 7 major hotels chains as well as independent hotels/B and B’s. Some 103 people responded to the survey conducted between 17 July and 14 August 2017

Mystery Shopper

We also conducted a mystery shopper (on 9 August 2017) of a selection of hotels. We asked them if they were able to offer a complementary mobile hoist free of charge to those who needed it. Some of the responses included:

Major UK Cities

We called two major chain hotels, each in London, Manchester, Glasgow and Belfast. The only hotel who were able to offer help to hire a hoist was one of the major chains in Glasgow, but the cost of hiring the hoist would fall to the customer booking the holiday. One other hotel in Glasgow from another major chain had a hoist available free of charge to their customers who needed it. All of the other hotels we called in London, Manchester, Glasgow and Belfast did not have any hoists, nor did they offer help to hire one.

We spoke to a customer service advisor at one of these chains, who was able to give full details of the accessibility of their rooms, including the type of flooring available. Unfortunately, none of their rooms had a level entry wet room and there was no complementary hoist free of charge. However, they were willing to take delivery of the hoist.

Other UK tourist destinations

We called a number of other hotels in various destinations across the UK. This included:

• Oxford

• York

• Brighton

• Newport

• Cardiff

The information we received varied across four different UK chains. None of the five above were able to offer a hoist free of charge, or offer assistance with hiring a hoist. One major chain recommended that we bring our own hoist, but said that their beds were not suitable for use with a portable hoist. Another hotel told us that they had a hoist in the swimming pool, and one member of staff we spoke to did not know what a hoist was.

Summary

From our mystery shopping there is only one hotel out of the 20 that we called able to offer a free hoist for those who need it at the hotel. None of the disabled people who have responded to our survey have said they’ve been given assistance to have a hoist hired at any hotel.

Policy Recommendations

Government

• Building regulations must be amended to reflect the changing needs of disabled people, including the provision of overhead hoists in accessible rooms and the inclusion of Changing Places toilets for functions.

• Independent businesses may not have adequate funding to make these choices. Government should create an ‘access renovation fund’ which independent businesses can access money to install hoists in hotel rooms, or other access requirements such as Changing Places toilets.

Local Authorities

• As the collective spending power of disabled people has been estimated at £249bn to the economy, local authorities must provide assistance, including financial and planning advice or permission to ensure that access is at the centre of all major renovations and new buildings.

Tourism Industry

• Hotels should purchase mobile hoists as an urgent measure, and provide these as a complimentary service to wheelchair users who need them. However, many require overhead hoists and we call on hotels to have their accessible rooms assessed to have these hoists fitted.

• We call on the tourism industry to provide staff training with disabled people so that their staff know what a hoist is, are aware of their policy regarding helping disabled people get a hoist for their stay, and to educate those in charge of hotel development of why having hoists available is so important.

Case Study

Carrie Aimes gave permission for this to be used as a case study.

“I am an infrequent traveller, not because I lack the desire but because it is so difficult to find appropriately adapted and affordable hotels. Even getting away for a single night is an almost impossible challenge, since hotel rooms are, disappointingly, not equipped with ceiling track hoists as standard.

Although some people get around this problem by hiring (at an extra cost) or taking with them a portable hoist, this is not practical for all. Portable hoists are cumbersome, difficult to store, transport and manoeuvre. Furthermore, many people simply don’t have access to a vehicle large enough to carry such large-scale equipment.

I have Ullrich congenital muscular dystrophy and am completely non-ambulant. I can’t safely transfer and so I either have to be hoisted or manually lifted. Understandably most people, excluding family, are reluctant to do the latter. So, if I want or need to get away from home, my only current option is to ask family members if they are willing to lend their time and support (far from ideal).

With so few hotels in the UK equipped with ceiling track hoists, our options are severely limited. For those of us who need this facility, a premium cost is incurred, and then we are restricted to specific locations. Sadly we are not free as others are, to occupy any hotel room in a hotel of our choice, anywhere in the country.”

Two European estates in America

Read article : Two European estates in America

The Edsel and Eleanor Ford House in Grosse Pointe Shores MI (which brings us a satisfying instance of the –palooza libfix); and the Castello di Amorosa near Calistoga CA (which offers a range of California wines and also Belgian-style chocolate). The first designed to reproduce the vernacular architecture of the English Cotswolds, the second a fantasy re-creation of an Italian castle.

Traditionally, the great estates of America, designed by and for captains of industry and commerce, had European models — castles and great country houses. They also functioned as art museums or had extensive formal gardens or both. Here in California, think Filoli in Woodside (on the San Francisco peninsula, not far north of where I live) and Hearst Castle in San Simeon (on the Central Coast).

The Edsel and Eleanor Ford house, built in the 1920s, is very much in this tradition, which continues to this day: Castello di Amorosa was built early in this century and opened to the public only 10 years ago.

The Ford estate came to me via Geoff Nathan on ADS-L a few days ago, who wrote about the Pollinator Palooza event there, coming up on the 19th (10-2): an instance of the –palooza libfix in a phonologically satisfying name (long, alliterative, with a nice rhythm).

(#1) 2016 event at Franklin Park in Columbus OH

Back in June Castello di Amorosa came to me from Juan Gomez, who visited it with friends and brought me a  raspberry dark chocolate bar from the shop there:

(#2) “Artisanally made by local gourmet chocolatier, Le Belge, exclusively for the Castello”

Pollinator Paloozas. On the playful libfix, see my 12/18/11 posting “Latkepalooza”, with a section on lollapalooza / lallapalooza, the source of the –palooza libfix.

Then on the event at the Ford house. From its site:

(#3) Monarch butterfly pollinating away

Mix and mingle with live butterflies in our butterfly house and learn about Monarch migrations.

Take a peek into a living bee hive and learn what makes them buzz from the experts at Greentoe Gardens.

Check out live bats from the Organization for Bat Conservation.

Learn about gardening for hummingbirds from Wild Birds Unlimited of Grosse Pointe Woods.

The corresponding event at the Franklin Park Conservatory has its own webpage, again featuring Monarchs:

(#4) Monarch on purple coneflower

There are even nurseries that specialize in plants for pollinators — in particular, Prairie Moon Nursery, Winona MN, with its Pollinator-Palooza Seed Mix:

Designed for full-sun to partial-shade sites with medium soils, this shortgrass mix boasts grasses and most wildflowers at 3′, with some flowers reaching 5′ at full bloom. Bloom times progress spring through fall. Our Pollinator-Palooza Seed Mix moves beyond more common pollinator mixes by offering plants that appeal to a broad array of pollinating insects. Included in the 45 species are some not commonly available like Late Figwort and Hairy Mountain Mint. Research shows that inclusion of native plantings near agricultural crops greatly enhances crop yield, attracts native pollinators, improves ecosystems and lessens reliance on already-stressed European-introduced honeybees that annually are transported around the country to flowering crops. Pollinator-Palooza’s blend of flowers and grasses will be equally appealing to humans and insects. We believe this mix will help enlighten everyone to the importance of pollinator habitat.

The Ford house. From Wikipedia, quite a bit from a long and detailed article on the estate:

(#5)

The Edsel and Eleanor Ford House is a mansion located at 1100 Lake Shore Drive in Grosse Pointe Shores, northeast of Detroit, Michigan; it stands on the site known as “Gaukler Point”, on the shore of Lake St. Clair. The house became the new residence of the Edsel and Eleanor Ford family in 1929. Edsel Ford was the son of Henry Ford and an executive at Ford Motor Company. The estate’s buildings were designed by architect Albert Kahn, its site plan and gardens by renowned landscape designer Jens Jensen. The property was listed on the National Register of Historic Places in 1979, and was designated a National Historic Landmark in 2016.

The Fords traveled to England with Albert Kahn for the concept’s ideas, where they were attracted to the vernacular architecture of the Cotswolds. They asked Kahn to design a house that would resemble the closely assembled village cottages typical of that rural region. Kahn’s design included sandstone exterior walls, a traditional slate roof with the stone shingles decreasing in size as they reach its peak, and moss with ivy grown across the house’s exterior. Construction on the house began in 1926.

While construction of the house itself took only one year, two years were spent fitting it with antique wood paneling and fireplaces brought from English Manor houses; interior fittings were in the hands of Charles Roberson, an expert in adapting old European paneling and fittings to American interiors. The Gallery, the largest room in the house, is paneled with sixteenth-century oak linenfold relief carved wood panelling. Its hooded chimneypiece is from Wollaston Hall in Worcestershire, England; the timber-framed house had been demolished in 1925 and its dismantled elements and fittings were in the process of being dispersed. Fourteenth century stained-glass window medallions were added to the house in the late 1930s. Roberson’s barrel-vaulted ceiling for the Gallery was modeled on one at Boughton Malherbe, Kent, England. Paneling and doors in the Dining Room, entirely devoid of electricity, came from ‘New Place’, a victim of early twentieth-century expansion in Upminster, a new suburb of London. The Library’s paneling and its stone chimneypiece came from the Brudenell seat, Deene Park, Northamptonshire, England. Harris suggests that this already once removed paneling had come from another ‘Brudenell seat.’ The Study has a wooden overmantel with the date 1585, from Heronden Hall, in Tenterden, Kent.

Other interesting design elements include kitchen counters made of sterling silver, a “secret” photographic darkroom behind a panel of Edsel Ford’s office, and Art Deco style rooms designed by Walter Dorwin Teague, a leading industrial designer of the 1930s. Teague’s first floor “Modern Room” features ‘the new’ indirect lighting method, taupe colored leather wall panels, and a curved niche with eighteen vertical mirrored sections. He also designed bedrooms and sitting rooms for all three of Edsel and Eleanor’s sons. Teague’s design for son Henry Ford II’s bathroom includes grey glass walls made of the same structural glass as its shower stall.

Furnishings: The house featured an extensive art collection, reflecting Edsel and Eleanor’s status as serious museum benefactors. After Eleanor Ford’s death, many important paintings were donated to the Detroit Institute of Arts (DIA). Reproductions were hung in their place. The classical French-style Drawing Room features two original Paul Cézanne paintings and reproductions of Pierre-Auguste Renoir and Edgar Degas works. A reproduction of Vincent van Gogh’s The Postman Roulin hangs in the Morning Room. An original Diego Rivera painting, Cactus on the Plains, hangs in the Modern Room.

(On Rivera at the DIA, see my 6/15/15 posting “Rivera in Detroit”.)

There are also extensive gardens, where Pollinator Palooza will take place.

Castello di Amorosa. From Wikipedia:

(#6) Castle and vineyards

Castello di Amorosa is a castle and a winery located near Calistoga, California. First opening its doors to the public in April 2007, the castle is the pet project of 4th generation vintner, Dario Sattui, who also owns and operates the V. Sattui Winery named after his great-grandfather who originally established a winery in San Francisco in 1885 after emigrating from Italy to California.

The winery sits on property that was once part of an estate owned by Edward Turner Bale.

The castle interiors, which include 107 rooms on 8 levels above and below ground, cover approximately 121,000 square feet (11,200 m2). Key details and building techniques are architecturally faithful to the 12th and 13th century time period. Among many other features it has: a moat; a drawbridge; defensive towers; an interior courtyard; a torture chamber [an especially nice touch]; a chapel/church; a knights’ chamber; and a 72 by 30 feet (9.1 m) great hall with a 22-foot (6.7 m)-high coffered ceiling.

(#7) The great hall of the Castello

In addition to an assortment of wines, the Castello shop offers chocolate. Ad copy for the chocolate bar 4-pack:

Can’t decide which Castello chocolate bar is your favorite? Why not get all four! Enjoy our Dark Chocolate Sea Salt, Milk Chocolate, La Fantasia Raspberry Chocolate, and Key Lime Sea Salt White Chocolate bars in this enticing 4-pack.

The raspberry bar was quite tasty.

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Norcros PLC Interim Results - ADVFN

Read article : Norcros PLC Interim Results - ADVFN

Norcros (LSE:NXR)
Historical Stock Chart 2 Years : From Oct 2015 to Oct 2017 TIDMNXR RNS Number : 4598F Norcros PLC 12 November 2015 12 November 2015 Norcros plc Results for the six months ended 30 September 2015 'Strong momentum within our businesses' Norcros, the market leading supplier of innovative branded showers, taps, bathroom accessories, tiles and adhesives, today announces its results for the six months ended 30 September 2015. Financial Summary 2015 2014 % change % change as reported at constant currency ----------------------- ---------- ---------- ------------- ------------- Revenue GBP118.7m GBP108.6m +9.3% +12.0% ----------------------- ---------- ---------- ------------- ------------- Underlying* operating profit GBP9.9m GBP7.4m +34% ----------------------- ---------- ---------- ------------- ------------- Underlying* profit before tax GBP9.4m GBP6.7m +40% ----------------------- ---------- ---------- ------------- ------------- Profit before tax GBP7.0m GBP6.3m +11% ----------------------- ---------- ---------- ------------- ------------- Underlying operating cash flow** GBP13.3m GBP11.6m +15% ----------------------- ---------- ---------- ------------- ------------- Diluted underlying EPS * 11.8p 8.1p +46% ----------------------- ---------- ---------- ------------- ------------- Net debt GBP29.2m GBP20.0m ----------------------- ---------- ---------- ------------- ------------- Interim dividend per share 2.2p 1.85p +19% ----------------------- ---------- ---------- ------------- ------------- * Underlying is before IAS 19R administrative expenses, acquisition related costs and exceptional operating items and, where relevant, before non-cash finance costs ** Underlying operating cash flow means cash generated from continuing operations before exceptional cash flows and pension fund deficit recovery contributions Restated for the 10:1 share consolidation completed on 29 September 2015 Highlights -- Strong first half performance -- Revenue increased by 12.0% on a constant currency basis -- Underlying operating profit increased by 34% to GBP9.9m -- Underlying profit before tax increased by 40% to GBP9.4m -- Profit before tax increased by 11% to GBP7.0m -- Continued strong underlying operating cash generation: 104% of underlying EBITDA -- Acquisition of Croydex completed on 25 June 2015 -- Diluted underlying earnings per share 46% higher at 11.8p -- Interim dividend increased by 19% to 2.2p per share Martin Towers, Chairman, commented: "I am pleased to announce a strong set of results for the six months ended 30 September 2015. Not only has the Group continued to make excellent progress in its existing businesses, but it has continued to advance towards its strategic targets with the acquisition of Croydex at the end of June 2015. With our strong brands, leading market positions and continued self-help initiatives focused on market share gain the Group is well positioned to make further progress. Given the strong first half performance and momentum within our businesses, the Board now expects the Group to achieve underlying operating profit marginally ahead of market expectations for the year to 31 March 2016." There will be a presentation today at 9.30 am for analysts at the offices of Hudson Sandler, 29 Cloth Fair, London, EC1A 7NN. The supporting slides will be available on the Norcros website at http://www.norcros.com later in the day. ENQUIRIES Norcros plc Tel: 01625 547700 Nick Kelsall, Group Chief Executive Martin Payne, Group Finance Director Hudson Sandler Tel: 0207 796 4133 Nick Lyon Charlie Jack Katie Matthews Notes to Editors -- Norcros is a leading supplier of high quality and innovative showers, taps, bathroom accessories, ceramic wall and floor tiles and adhesive products with operations primarily in the UK and South Africa. -- Based in the UK, Norcros operates under five brands: - Triton Showers - Market leader in the manufacture and marketing of showers in the UK - Vado - A leading manufacturer and supplier of taps, mixer showers, bathroom accessories and valves - Croydex - A market-leading, innovative designer, manufacturer and distributor of high quality bathroom furnishings and accessories - Johnson Tiles - A leading manufacturer and supplier of ceramic tiles in the UK - Norcros Adhesives - Manufacturer of tile & stone adhesives, grouts and related products -- Based in South Africa, Norcros operates under three brands: - Tile Africa - Chain of retail stores focused on ceramic and porcelain tiles, and associated products such as sanitary ware, showers and adhesives - Johnson Tiles South Africa - Manufacturer of ceramic and porcelain tiles - TAL - The leading manufacturer of ceramic and building adhesives -- Norcros is headquartered in Wilmslow, Cheshire and employs around 1800 people. The Company is listed on the London Stock Exchange. For further information please visit the Company website: http://www.norcros.com/ Chairman's statement I am pleased to announce a strong set of results for the six months ended 30 September 2015. Not only has the Group continued to make excellent progress in its existing businesses, but it has continued to advance towards its strategic targets with the acquisition of Croydex at the end of June 2015. Market conditions in the UK continue to be mixed, with the trade sector continuing to perform well driven by new house build and commercial specifications, although RMI driven demand is muted and retail markets generally remain challenging. In South Africa, market conditions have been impacted by the recent slow-down in China affecting the commodity sector which is a significant part of the South African economy. However, the strong self-help culture evident in all our businesses has continued to offset these challenges and has been a key factor in delivering these strong results. Underlying operating profit rose by 34% to GBP9.9m (2014: GBP7.4m) representing an improved margin of 8.3% (2014: 6.8%). UK performance benefitted from the return to profitability of Johnson Tiles UK following its manufacturing inefficiencies in the prior year and the three month contribution from Croydex. South Africa nearly doubled its underlying operating profit despite a weaker Rand, driven by strong constant currency revenue growth and an improvement in underlying profit performance in all three businesses including a return to profitability at Johnson Tiles South Africa. Through a combination of strong underlying EBITDA and continued prudent management of working capital, underlying operating cash generation was GBP13.3m (2014: GBP11.6m), representing 104% of underlying EBITDA (2014: 112%). This performance and a cash outflow of GBP20.1m relating to the acquisition of Croydex left net debt at GBP29.2m compared to GBP14.2m at 31 March 2015 and represents leverage of 1.1 times underlying proforma EBITDA. Acquisition of Croydex As previously announced, the Group acquired 100% of the ordinary share capital of Croydex Group Limited ("Croydex"), a market leading, innovative designer, manufacturer and distributor of high quality bathroom furnishings and accessories, on 25 June 2015. The acquisition of Croydex is an important next step in the Group's growth strategy to increase revenue to GBP420m by 2018 and follows on from the very successful integration of the Vado business which Norcros acquired in March 2013. The addition of the Croydex business to the Group's existing portfolio has increased the breadth of our product range in the bathroom segment and has enabled the Group to offer an even broader array of complementary bathroom products to our customers. Croydex will also benefit from the global distribution channels, sourcing skills and strong financial position of the enlarged Group. I am excited by the prospects for Croydex within the Norcros Group and have been impressed by the energy and enthusiasm of its management and employees. Results Revenue for the six month period to 30 September 2015 at GBP118.7m (2014: GBP108.6m) was 12.0% higher on a constant currency basis compared to the prior year, and 9.3% on a Sterling reported basis. Of this growth, 5.5% was attributable to a three month contribution from Croydex. On a like for like basis excluding Croydex, constant currency growth was 6.5% and 4.0% on a Sterling reported basis. Underlying operating profit rose by 34% to GBP9.9m (2014: GBP7.4m) reflecting improvements in both the UK and South Africa together with a three month contribution from Croydex. Underlying profit before taxation increased by 40% to GBP9.4m (2014: GBP6.7m) reflecting the higher underlying operating profit and lower interest costs driven by improved margins offset by increased borrowings due to the acquisition of Croydex in June 2015. Profit before taxation for the period was GBP7.0m (2014: GBP6.3m), reflecting increased underlying profit before taxation, higher exceptional operating income of GBP2.3m (2014: GBP0.3m) primarily as a result of settlement in the period of a contractual dispute with Morrisons relating to a previous agreement to sell them freehold land in Tunstall, Stoke on Trent, offset by higher non-underlying interest of GBP1.3m (2014: income of GBP0.6m) and higher acquisition related costs of GBP2.6m (2014: GBP0.5m) relating to the final year of the Vado earn out mechanism of GBP1.3m and the costs of acquiring Croydex of GBP0.8m. (MORE TO FOLLOW) Dow Jones Newswires November 12, 2015 02:01 ET (07:01 GMT) Diluted underlying earnings per share were 46% higher at 11.8p (2014: 8.1p restated for the 10:1 share consolidation), reflecting improved underlying earnings. Financial We have continued to demonstrate strong cash conversion with underlying operating cash generated in the period at GBP13.3m (2014: GBP11.6m), representing 104% of underlying EBITDA for the period (2014: 112%). There was a working capital outflow of GBP0.2m in the period which compared to a GBP0.6m inflow in the prior period. A pension deficit recovery payment of GBP1.1m (2014: GBP1.0m) in the period (as part of the GBP2.0m plus CPI per annum contribution agreed with the Trustee in 2013) and cash inflows relating to exceptional items of GBP0.7m (2014: outflows of GBP0.7m) resulted in net cash generated from continuing operations at GBP12.9m (2014: GBP9.9m). Investment in capital expenditure in the period amounted to GBP3.2m (2014: GBP3.4m) and has remained consistent at 1.1 times depreciation. Net debt increased in the six months to 30 September 2015 by GBP15.0m to GBP29.2m principally as a result of the acquisition of Croydex, which, including costs related to the acquisition of GBP0.8m, resulted in a net cash outflow in the period of GBP20.1m. The gross deficit relating to our UK defined benefit pension scheme as calculated under IAS 19R has improved slightly from a deficit of GBP44.3m at 31 March 2015 to a deficit of GBP42.4m at 30 September 2015. The reduction in the deficit principally reflects an increase in the discount rate to 3.8% net of a lower return on scheme assets. During the previous year the plan undertook a number of liability management exercises which resulted in the recognition of a net settlement gain of GBP1.7m. A further gain of GBP0.4m has been recognised in the period as a result of these exercises which has been included within exceptional operating items. Property As highlighted in the Group's 2015 Annual Report, the contractual dispute arising from the conditional sale of part of the surplus land in Tunstall to a subsidiary of Wm Morrison Supermarkets plc was settled on 15 May 2015. The Company has recognised exceptional operating income of GBP1.9m in relation to this settlement. Dividend The Board is declaring an interim dividend of 2.20p per share reflecting the strong first half performance and its confidence in the Group's future prospects. Taking into account the 10:1 share consolidation which took place on 29 September 2015, this represents an increase of 19% over the restated interim dividend from the previous year of 1.85p per ordinary share. The dividend is payable on 7 January 2016 to shareholders on the register on 4 December 2015. The shares will be quoted as ex-dividend on 3 December 2015. Operating review UK For the six months ended 30 September 2015 total revenue in our UK businesses was 9.8% ahead of the prior period at GBP79.9m (2014: GBP72.8m). On a like for like basis excluding Croydex revenue of GBP5.8m, total revenue increased by 1.8%. Underlying operating profit at GBP8.0m was 25% higher than last year at GBP6.4m and represents an improved return on sales of 10.0% (2014: 8.8%). The trends in our UK markets seen in the prior year have continued into the first half of this year, with good growth in the trade sector, but a challenging retail sector. Triton Our market leading shower operation, Triton Showers, recorded revenue growth of 3.1% for the six month period to 30 September 2015 to GBP26.2m (2014: GBP25.4m). UK revenue for Triton was 1.9% higher than the prior year. Revenue from the UK trade sector increased by 3.3% compared to the prior year, with strong trading across major national merchants and electrical wholesale customers and a much improved performance in the specification sector, which has been a key area of focus for the business. The retail sector however remains challenging, principally due to weak consumer demand and the impact of product range changes at some of the major DIY accounts. Notwithstanding this, Triton still delivered marginally higher retail revenue compared to the previous year. Triton has continued to invest significantly in new product development and in product innovation with the recent launch of the T80ZFF thermostatic electric shower range which further strengthens our offer in the growing thermostatic shower market. Export markets account for 17% of Triton's overall revenue and have continued to grow, increasing by 10.0% compared to the prior year. The principal export market for Triton is Ireland, where a revitalised new build and RMI sector has helped drive revenue growth. Markets further afield, principally Latin America, continue to be developed. We have invested in both new product development and marketing including representation at a number of major trade fairs in the region. Triton has continued to generate strong cashflows and delivered underlying operating profits which were marginally ahead of last year. Vado Our leading manufacturer of taps, mixer showers, bathroom accessories and valves, Vado, recorded revenue of GBP15.9m for the period (2014: GBP14.8m), 7.4% higher than the prior year. UK revenue was 16.7% higher than the prior year, with growth in both the retail and trade segments. In the trade sector, we continue to make strong progress in both residential and commercial specifications, benefitting particularly from increased new private housing programmes. In retail, we are beginning to see the benefits of investing in the expansion of the sales team and were recently recognised as tap brand of the year by BKU magazine in its inaugural awards. Export revenue, which accounts for approximately 30% of Vado revenue, was 9.6% lower than the same period last year. This performance reflects a mixed picture with lower revenue outside of our major Middle East market held back by credit issues with a number of sub-Saharan customers and a number of larger projects last year not being repeated this year. However, in the Middle East we grew revenue strongly in the first half of this year reflecting more buoyant construction activity. We have recently increased our presence in this market and established a directly employed resource in the region to strengthen the Vado brand in the important specification sector. Underlying operating profits were ahead of the same period last year driven largely by revenue growth. Croydex Croydex, our market-leading, innovative designer, manufacturer and distributor of high quality bathroom furnishings and accessories, which was acquired on 25 June 2015, recorded revenue of GBP5.8m for the three month period since acquisition to 30 September 2015, in line with our expectations. Whilst it was not under Group ownership for the full period, revenue for the six months ended 30 September 2015 was GBP10.9m, 3.7% higher than the prior year. UK sales at GBP10.3m were in line with the prior year with the challenging retail environment being offset by growth in the trade sector. Export sales of GBP0.6m were GBP0.4m higher than the prior period, reflecting the additional focus employed to target growth outside the UK, with particular success being achieved in Germany. Operationally, Croydex has been integrated into the Norcros group seamlessly, and the performance of the business since acquisition has been highly encouraging, with the business generating an underlying profit performance in line with the Board's expectations. Johnson Tiles Our UK market leading ceramic tile manufacturer and a market leader in the supply of both own manufactured and imported tiles, Johnson Tiles, recorded revenue 4.5% lower than the same period last year at GBP27.9m (2014: GBP29.2m). UK revenue was 2.7% lower than the comparative period last year. Excellent progress continues to be made in the trade segment with revenue 5.0% higher, notwithstanding that last year included the one-off benefit of the supply of ceramic poppies which formed the main part of the World War I commemorations at the Tower of London. Again, good progress has been made in the specification sector, with projects completed in the period for Holiday Inn and Total Fitness. In the retail sector, subdued demand in the DIY sector generally combined with the withdrawal from some unprofitable ranges resulted in revenues 9.6% lower than the prior year. Export revenue was also 16.7% lower than the prior year principally reflecting the combined impact of weak market conditions in France and credit issues in the Middle East. Operationally, the excellent progress made at the end of the last financial year has been sustained throughout this first half period. As a result of management actions manufacturing efficiencies have significantly improved compared to the prior period. This, together with the continued trade revenue growth, have been key factors in delivering a solid underlying operating profit performance for the period, a marked improvement over the small operating loss recorded in the prior period. Norcros Adhesives Norcros Adhesives, our manufacturer and supplier of tile and stone adhesives and ancillary products, once again demonstrated excellent growth with revenue 20.6% higher at GBP4.1m (2014: GBP3.4m). This performance principally reflects further development of our distribution channels in the trade segment, as well as some initial success in the retail DIY sector. The business continues to develop innovative new products to address the technical issues in fixing tiles to different types of substrate, for example the launch of the Ultima8 B+ range, which solves the problem of fixing tiles to bituminous surfaces. Additionally, the business has continued to invest in future growth, achieving the ISO 14001 accreditation for environmental management, commencing the construction of a new training centre and laboratory in the UK and establishing a local presence in the Middle East to better capitalise on the opportunities in the significant specification market in this region. (MORE TO FOLLOW) Dow Jones Newswires November 12, 2015 02:01 ET (07:01 GMT) This continued strong growth has delivered an underlying operating profit performance ahead of the same period last year. South Africa Once again our South African businesses reported another period of double digit constant currency growth resulting in revenue 16.9% higher than prior year on a constant currency basis. Reported Sterling revenue was 8.4% higher at GBP38.8m (2014: GBP35.8m), reflecting an 8% weaker Rand. Underlying operating profit at GBP1.9m was 90% higher than the previous period (2014: GBP1.0m) despite the weaker Rand adversely impacting reported profits by GBP0.1m. This represents a significantly improved return on sales of 4.9% (2014: 2.7%). All three businesses delivered an improvement in local currency underlying operating profit performance. Our South African operations have made further progress in the first half of the year with all three businesses growing ahead of the market as we continue to implement our strategy of growing our brands through geographic expansion and range diversification. Gross margins improved against the previous year, with the benefits in our supply chain and production efficiencies delivering tangible benefits over the period. Johnson Tiles South Africa Our tile manufacturing business, Johnson Tiles South Africa, achieved independent sector revenue of GBP5.4m (2014: GBP5.2m), 12.5% higher than prior year on a constant currency basis, and 3.8% higher on a reported Sterling basis. Following the investment in two inkjet printers over the last two years we have successfully enriched our product offer with the launch of a number of additional inkjet ranges and a new rectangular product format in response to market trends. An improved product offer and a consistent manufacturing performance have resulted in a marked improvement in performance. As reported in our last annual report, Johnson Tiles South Africa experienced some manufacturing disruption as a result of the national electricity load-shedding programme. Consequently a new standby diesel generator has been successfully installed in the period which will significantly reduce the impact of being unable to operate the manufacturing facility in the event of a power outage. Notwithstanding the disruption from load shedding prior to the generator being installed, the business delivered an underlying operating profit compared to a small underlying operating loss in the prior period. TAL Our market leading adhesive business, TAL, delivered constant currency independent sector revenue growth of 20.5% in the period, or an 11.9% increase on a Sterling reported basis to GBP9.4m (2014: GBP8.4m). This growth was achieved through market share gain in domestic markets and through continued focus on growing sub-Saharan export markets, as well as product range extensions, such as a new 2kg bag to its grout range and a new powdered bond range, both of which have received a favourable market reaction. In addition to the considerable growth in revenue, we have continued to drive profitability through further improvements in plant and procurement efficiencies. This has been reflected in a stronger underlying operating profit performance than the prior year. Tile Africa Revenue at our leading retailer of wall and floor tiles, adhesives, showers, sanitaryware and bathroom fittings, Tile Africa, increased by 16.5% on a constant currency basis compared to the prior year, and by 8.1% on a Sterling reported basis to GBP24.0m (2014: GBP22.2m). Tile Africa currently operates from 29 stores and four franchises, with a new store in Boksburg, Gauteng, expected to open by the end of this financial year. The new CX format stores that we developed to improve the overall retail customer experience, and were showcased in the last Annual Report, have continued to perform strongly, and consequently there are plans to retrofit this format into further stores. The store at Lenasia has recently been refitted as a factory outlet aimed at the emerging consumer segments following on from the positive results achieved at the existing store of this type in Silverton. The improved CX store layout, together with benefits from our increased focus on in-stock and on-display offering has been reflected in market share gain and revenue growth, and in an improved underlying operating profit compared to the prior year. Share consolidation On 29 September 2015 the Company undertook an exercise to consolidate its existing 1p ordinary shares into new 10p ordinary shares, and the new shares began to be traded on the London Stock Exchange on 30 September. The resolution permitting the Board to effect the consolidation had been passed at the Company's AGM on 22 July. The Board considered it was important to reduce the number of shares in issue to a level more appropriate for a company of Norcros's size, and to make the shares more attractive to investors, whilst having no effect on the relative holdings of individual shareholders. Full details of the share consolidation are provided on the Company's website www.norcros.com. Summary and outlook The Group has made a very pleasing start to the year, with each of our businesses delivering an improvement in underlying operating profit performance. As I have already highlighted, we took decisive management action in our tiles businesses in both the UK and South Africa to address the operational challenges of recent years and now have a much stronger base from which to develop our medium term growth plans. Whilst conditions in our UK retail and export markets remain testing, we continue to capitalise on the demand opportunities in the more positive trade sector where we continue to perform strongly. The acquisition of the Croydex business is a further step in realising our strategic target of generating revenues of GBP420m by 2018 and importantly the business has already been smoothly integrated into the Group. With our strong brands, leading market positions and continued self-help initiatives focused on market share gain the Group is well positioned to make further progress. Given the strong first half performance and momentum within our businesses, the Board now expects the Group to achieve underlying operating profit marginally ahead of market expectations for the year to 31 March 2016. M. G. Towers Chairman 12 November 2015 Condensed consolidated income statement Six months to 30 September 2015 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014* 2015* (unaudited) (unaudited) (audited) Notes GBPm GBPm GBPm ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Continuing operations Revenue 118.7 108.6 222.1 ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Underlying operating profit 9.9 7.4 17.0 IAS 19R administrative expenses (0.8) (0.8) (1.7) Acquisition related costs 4 (2.6) (0.5) (2.2) Exceptional operating items 4 2.3 0.3 (2.5) ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Operating profit 8.8 6.4 10.6 ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Finance costs 7 (1.1) (0.8) (1.4) Exceptional finance costs 7 - (0.4) (0.4) ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Total finance costs 7 (1.1) (1.2) (1.8) Finance income 7 - 1.6 3.3 IAS 19R finance cost (0.7) (0.5) (1.1) ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Profit before taxation 7.0 6.3 11.0 Taxation 6 (1.6) (1.6) (2.9) ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Profit for the period from continuing operations 5.4 4.7 8.1 ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Profit for the period from discontinued operations - 0.1 0.1 ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Profit for the period 5.4 4.8 8.2 (MORE TO FOLLOW) Dow Jones Newswires November 12, 2015 02:01 ET (07:01 GMT) ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Earnings per share attributable to the owners of the Company Basic earnings per share: From continuing operations 5 9.0p 8.0p 13.6p From discontinued operations 5 - 0.2p 0.2p ----------------------------------------------------------------------- ----- ------------ ------------ ---------- From profit for the period 5 9.0p 8.2p 13.8p ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Diluted earnings per share: From continuing operations 5 8.7p 7.7p 13.1p From discontinued operations 5 - 0.2p 0.2p ----------------------------------------------------------------------- ----- ------------ ------------ ---------- From profit for the period 5 8.7p 7.9p 13.3p ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Weighted average number of shares for basic earnings per share (millions) 5 60.1 59.0 59.2 ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Non-GAAP measures Underlying profit before taxation (GBPm) 3 9.4 6.7 15.8 Underlying earnings (GBPm) 3 7.3 5.0 13.0 Basic underlying earnings per share 5 12.2p 8.4p 21.9p Diluted underlying earnings per share 5 11.8p 8.1p 21.1p ----------------------------------------------------------------------- ----- ------------ ------------ ---------- * The results of previous periods have been restated where required to reflect the revised presentation of acquisition related costs and the 10:1 share consolidation completed on 29 September 2015. Condensed consolidated statement of comprehensive income Six months to 30 September 2015 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm ------------------------------------------------------------------------- ------------ ------------ ---------- Profit for the period 5.4 4.8 8.2 -------------------------------------------------------------------------- ------------ ------------ ---------- Other comprehensive income and expense: Items that will not subsequently be reclassified to the income statement Actuarial gains/(losses) on retirement benefit obligations 1.6 (14.8) (18.8) Items that may be subsequently reclassified to the income statement Foreign currency translation adjustments (6.0) (1.2) (0.6) -------------------------------------------------------------------------- ------------ ------------ ---------- Other comprehensive expense for the period (4.4) (16.0) (19.4) -------------------------------------------------------------------------- ------------ ------------ ---------- Total comprehensive income/(expense) for the period 1.0 (11.2) (11.2) -------------------------------------------------------------------------- ------------ ------------ ---------- Attributable to equity shareholders arising from Continuing operations 1.0 (11.4) (11.4) Discontinued operations - 0.2 0.2 -------------------------------------------------------------------------- ------------ ------------ ---------- 1.0 (11.2) (11.2) ------------------------------------------------------------------------- ------------ ------------ ---------- Items in the statement are disclosed net of tax. Condensed consolidated balance sheet At 30 September 2015 At At At 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) Notes GBPm GBPm GBPm -------------------------------------- ----- ------------ ------------ --------- Non-current assets Goodwill 29.5 22.0 22.2 Intangible assets 12.2 4.8 4.7 Property, plant and equipment 37.5 36.8 37.6 Investment properties - 4.3 - Derivative financial instruments 15 - 0.2 - Deferred tax assets 6 11.2 14.1 13.8 -------------------------------------- ----- ------------ ------------ --------- 90.4 82.2 78.3 -------------------------------------- ----- ------------ ------------ --------- Current assets Inventories 56.3 51.0 52.2 Trade and other receivables 43.6 42.1 40.5 Derivative financial instruments 15 1.0 - 2.1 Cash and cash equivalents 7.8 4.5 5.6 108.7 97.6 100.4 -------------------------------------- ----- ------------ ------------ --------- Current liabilities Trade and other liabilities (60.5) (54.1) (54.9) Derivative financial instruments 15 (0.3) (0.8) (1.0) Current tax liabilities (1.4) (1.7) (1.3) Financial liabilities - borrowings 8 (4.5) (4.1) (1.4) (66.7) (60.7) (58.6) -------------------------------------- ----- ------------ ------------ --------- Net current assets 42.0 36.9 41.8 -------------------------------------- ----- ------------ ------------ --------- Total assets less current liabilities 132.4 119.1 120.1 -------------------------------------- ----- ------------ ------------ --------- Non-current liabilities Financial liabilities - borrowings 8 (32.5) (20.4) (18.4) Pension scheme liability 12 (42.4) (40.6) (44.3) Other non-current liabilities (2.1) (1.5) (1.4) Provisions (3.2) (3.7) (3.3) -------------------------------------- ----- ------------ ------------ --------- (80.2) (66.2) (67.4) -------------------------------------- ----- ------------ ------------ --------- Net assets 52.2 52.9 52.7 -------------------------------------- ----- ------------ ------------ --------- Financed by: Ordinary share capital 9 6.1 5.9 6.0 Share premium 1.0 0.9 1.0 Retained earnings and other reserves 45.1 46.1 45.7 -------------------------------------- ----- ------------ ------------ --------- Total equity 52.2 52.9 52.7 -------------------------------------- ----- ------------ ------------ --------- Condensed consolidated statement of cash flow (MORE TO FOLLOW) Dow Jones Newswires November 12, 2015 02:01 ET (07:01 GMT) Six months to 30 September 2015 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) Notes GBPm GBPm GBPm ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Cash generated from operations 10 12.9 10.0 16.2 Income taxes paid (0.6) (0.2) (0.5) Interest paid (0.5) (0.7) (1.3) ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Net cash generated from operating activities 11.8 9.1 14.4 ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Cash flows from investing activities Proceeds from sale of investment property - - 6.1 Proceeds from sale of property, plant and equipment - 0.4 0.4 Purchase of investment property - - (0.9) Purchase of property, plant and equipment (3.2) (3.4) (7.0) Acquisition of subsidiary undertakings net of cash acquired (20.5) (0.3) (0.5) Disposal of subsidiary undertakings net of cash divested - 3.8 3.8 ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Net cash (used in)/generated from investing activities (23.7) 0.5 1.9 ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Cash flows from financing activities Net proceeds from issue of ordinary share capital - - 0.2 Drawdown/(repayment) of borrowings 14.0 (10.1) (12.1) Costs of raising debt finance - (0.7) (0.7) Dividends paid to equity shareholders (2.2) (2.0) (3.1) ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Net cash generated from/(used in) financing activities 11.8 (12.8) (15.7) ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Net (decrease)/increase in cash at bank and in hand and bank overdrafts (0.1) (3.2) 0.6 Cash at bank and in hand and bank overdrafts at beginning of the period 4.2 3.7 3.7 Exchange movements on cash and bank overdrafts (0.8) (0.1) (0.1) ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Cash at bank and in hand and bank overdrafts at end of the period 3.3 0.4 4.2 ------------------------------------------------------------------------------ ------------ ------------ ---------- Non-GAAP measures Underlying operating cash flow 3 13.3 11.6 22.9 ----------------------------------------------------------------------- ----- ------------ ------------ ---------- Condensed consolidated statements of changes in equity Six months to 30 September 2015 (unaudited) Ordinary Retained share Share Treasury Translation earnings/ capital premium reserve reserve (losses) Total GBPm GBPm GBPm GBPm GBPm GBPm ------------------------------------------------- -------- ------- -------- ----------- --------- ----- At 31 March 2015 6.0 1.0 (0.1) (9.1) 54.9 52.7 Comprehensive income: Profit for the period - - - - 5.4 5.4 Actuarial gain on retirement benefit obligations - - - - 1.6 1.6 Other comprehensive expense: Foreign currency translation adjustments - - - (6.0) - (6.0) Total other comprehensive (expense)/ income - - - (6.0) 7.0 1.0 ------------------------------------------------- -------- ------- -------- ----------- --------- ----- Transactions with owners: Dividends paid - - - - (2.2) (2.2) Share option schemes and warrants 0.1 - (0.1) - 0.7 0.7 ------------------------------------------------- -------- ------- -------- ----------- --------- ----- At 30 September 2015 6.1 1.0 (0.2) (15.1) 60.4 52.2 ------------------------------------------------- -------- ------- -------- ----------- --------- ----- Six months to 30 September 2014 (unaudited) Ordinary Retained share Share Treasury Translation earnings/ capital premium reserve reserve (losses) Total GBPm GBPm GBPm GBPm GBPm GBPm ------------------------------------------------- -------- ------- -------- ----------- --------- ------ At 31 March 2014 5.8 0.9 - (8.5) 67.3 65.5 Comprehensive income: Profit for the period - - - - 4.8 4.8 Other comprehensive expense: Actuarial loss on retirement benefit obligations - - - - (14.8) (14.8) Foreign currency translation adjustments - - - (1.2) - (1.2) ------------------------------------------------- -------- ------- -------- ----------- --------- ------ Total other comprehensive expense - - - (1.2) (14.8) (16.0) ------------------------------------------------- -------- ------- -------- ----------- --------- ------ Transactions with owners: Dividends paid - - - - (2.0) (2.0) Share option schemes and warrants 0.1 - (0.1) - 0.6 0.6 ------------------------------------------------- -------- ------- -------- ----------- --------- ------ At 30 September 2014 5.9 0.9 (0.1) (9.7) 55.9 52.9 ------------------------------------------------- -------- ------- -------- ----------- --------- ------ Year ended 31 March 2015 (audited) Ordinary Retained share Share Treasury Translation earnings/ capital premium reserve reserve (losses) Total GBPm GBPm GBPm GBPm GBPm GBPm ------------------------------------------------- -------- ------- -------- ----------- --------- ------ At 31 March 2014 5.8 0.9 - (8.5) 67.3 65.5 Comprehensive income: Profit for the year - - - - 8.2 8.2 Other comprehensive expense: Actuarial loss on retirement benefit obligations - - - - (18.8) (18.8) Foreign currency translation adjustments - - - (0.6) - (0.6) ------------------------------------------------- -------- ------- -------- ----------- --------- ------ Total other comprehensive expense - - - (0.6) (18.8) (19.4) ------------------------------------------------- -------- ------- -------- ----------- --------- ------ Transactions with owners: Shares issued 0.2 0.1 (0.1) - - 0.2 Dividends paid - - - - (3.1) (3.1) (MORE TO FOLLOW) Dow Jones Newswires November 12, 2015 02:01 ET (07:01 GMT) Share option schemes and warrants - - - - 1.3 1.3 ------------------------------------------------- -------- ------- -------- ----------- --------- ------ At 31 March 2015 6.0 1.0 (0.1) (9.1) 54.9 52.7 ------------------------------------------------- -------- ------- -------- ----------- --------- ------ Notes to the accounts Six months to 30 September 2015 1. Accounting policies General information The Company is a public limited company which is listed on the London Stock Exchange and incorporated and domiciled in the UK. This condensed consolidated interim financial information was approved for issue on 12 November 2015. This condensed consolidated financial information does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. This condensed consolidated interim financial information has been neither audited nor reviewed. Basis of preparation This condensed consolidated interim financial information for the six months to 30 September 2015 has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and with IAS 34, 'Interim financial reporting', as adopted by the European Union. The Directors consider, after making appropriate enquiries at the time of approving the condensed consolidated interim financial information, that the Company and the Group have adequate resources to continue in operational existence and, accordingly, that it is appropriate to adopt the going concern basis in the preparation of the condensed consolidated interim financial information. The condensed consolidated interim financial information should be read in conjunction with the Annual Report and Accounts for the year ended 31 March 2015, which has been prepared in accordance with IFRS as adopted by the European Union. The Annual Report and Accounts was approved by the Board on 18 June 2015 and delivered to the Registrar of Companies. The report of the external auditor on the financial statements was unqualified. Accounting policies The principal accounting policies applied in the preparation of this condensed consolidated interim financial information are included in the financial report for the year ended 31 March 2015. These policies have been applied consistently to all periods presented. Taxes on income in the interim periods are accrued using the tax rate that would be applicable to the expected total annual profits or losses. New standards, amendments to standards and interpretations The following new standards, amendments to standards or interpretations are mandatory for the first time for the financial year beginning 1 April 2015. The Group has adopted the following new standards, amendments and interpretations now applicable. None of these standards and interpretations has had any material effect on the Group's results or net assets. Applicable for financial years Standard or interpretation Content beginning on or after -------------------------------------- ----------------- --------------------- Amendment to IAS 19 (revised) Employee benefits 1 April 2015 Annual improvements to IFRSs 2010-2012 Various 1 April 2015 Annual improvements to IFRSs 2011-2013 Various 1 April 2015 -------------------------------------- ----------------- --------------------- The following standards, amendments and interpretations are not yet effective and have not been adopted early by the Group: Applicable for financial years Standard or interpretation Content beginning on or after --------------------------------- ----------------------------------------------------- --------------------- Amendment to IFRS 10 Consolidated financial statements 1 April 2016 Amendment to IFRS 11 Joint arrangements 1 April 2016 Amendment to IFRS 12 Disclosure of interests in other entities 1 April 2016 IFRS 14 Regulatory deferral accounts 1 April 2016 Amendment to IAS 1 Presentation of financial statements 1 April 2016 Amendment to IAS 16 Property, plant and equipment 1 April 2016 Amendment to IAS 27 Separate financial statements 1 April 2016 Amendment to IAS 28 Investments in associates and joint ventures 1 April 2016 Amendment to IAS 38 Intangible assets 1 April 2016 Amendment to IAS 41 Agriculture 1 April 2016 Annual improvements to IFRSs 2014 Various 1 April 2016 IFRS 15 Revenue from contracts with customers 1 April 2018 IFRS 9 Financial instruments: classification and measurement 1 April 2018 --------------------------------- ----------------------------------------------------- --------------------- None of these standards or interpretations is expected to have a material impact on the Group. Risks and uncertainties The principal strategic level risks and uncertainties affecting the Group, together with the approach to their mitigation, remain as set out on pages 24 to 27 in the 2015 Annual Report, which is available on the Group's website (www.norcros.com). In summary the Group's principal risks and uncertainties are: -- key commercial relationships; -- accounting for customer rebates and other trade promotional spend; -- competition; -- reliance on production facilities; -- staff retention and recruitment; -- foreign currency exchange risk; -- interest rate risk; -- pension scheme management; -- energy price risk; -- additional capital requirements to fund ongoing operations; -- performance against banking covenants; -- changing consumer preferences; -- overseas operations; and -- acquisition risk. The Chairman's Statement in this condensed consolidated interim financial information includes comments on the outlook for the remaining six months of the financial year. Forward-looking statements This condensed consolidated interim financial information contains forward-looking statements. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct. Due to the inherent uncertainties, including both economic and business risk factors underlying such forward-looking information, actual results may differ materially from those expressed or implied by these forward-looking statements. The Group undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Accounting estimates and judgments The preparation of condensed consolidated interim financial information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amount of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing the condensed consolidated interim financial information, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended 31 March 2015. 2. Segmental reporting The Group operates in two main geographical areas: the UK and South Africa. All inter-segment transactions are made on an arm's length basis. The chief operating decision maker, which is considered to be the Board, assesses performance and allocates resources based on geography as each segment has similar economic characteristics, complementary products, distribution channels and regulatory environments. Continuing operations - 6 months to 30 September 2015 (unaudited) --------------------------------------------- South UK Africa Group Notes GBPm GBPm GBPm ---------------------------------- ----- ------------- -------------- -------------- Revenue 79.9 38.8 118.7 ---------------------------------- ----- ------------- -------------- -------------- Underlying operating profit 8.0 1.9 9.9 IAS 19R administrative expenses (0.8) - (0.8) Acquisition related costs 4 (2.6) - (2.6) Exceptional operating items 4 2.3 - 2.3 ---------------------------------- ----- ------------- -------------- -------------- (MORE TO FOLLOW) Dow Jones Newswires November 12, 2015 02:01 ET (07:01 GMT) Operating profit 6.9 1.9 8.8 ---------------------------------- ----- ------------- -------------- -------------- Finance costs (net) (1.8) ---------------------------------- ----- ------------- -------------- -------------- Profit before taxation 7.0 Taxation 6 (1.6) ---------------------------------- ----- ------------- -------------- -------------- Profit from continuing operations 5.4 ---------------------------------- ----- ------------- -------------- -------------- Net debt 10 (29.2) ---------------------------------- ----- ------------- -------------- -------------- Continuing operations - 6 months to 30 September 2014 (unaudited)* ---------------------------------------------- South UK Africa Group Notes GBPm GBPm GBPm ---------------------------------- ----- ------------- --------------- -------------- Revenue 72.8 35.8 108.6 ---------------------------------- ----- ------------- --------------- -------------- Underlying operating profit 6.4 1.0 7.4 IAS 19R administrative expenses (0.8) - (0.8) Acquisition related costs 4 (0.5) - (0.5) Exceptional operating items 4 0.3 - 0.3 ---------------------------------- ----- ------------- --------------- -------------- Operating profit 5.4 1.0 6.4 ---------------------------------- ----- ------------- --------------- -------------- Finance costs (net) (0.1) ---------------------------------- ----- ------------- --------------- -------------- Profit before taxation 6.3 Taxation 6 (1.6) ---------------------------------- ----- ------------- --------------- -------------- Profit from continuing operations 4.7 ---------------------------------- ----- ------------- --------------- -------------- Net debt 10 (20.0) ---------------------------------- ----- ------------- --------------- -------------- * The results have been restated to reflect the revised presentation of acquisition related costs. Continuing operations - Year ended 31 March 2015 (audited) --------------------------------------- South UK Africa Group Notes GBPm GBPm GBPm ------------------------------------------------ ------ ----------- ------------ ------------ Revenue 149.1 73.0 222.1 ------------------------------------------------ ------ ----------- ------------ ------------ Underlying operating profit 13.8 3.2 17.0 IAS 19R administrative expenses (1.7) - (1.7) Acquisition related costs 4 (2.2) - (2.2) Exceptional operating items 4 (2.3) (0.2) (2.5) ------------------------------------------------ ------ ----------- ------------ ------------ Operating profit 7.6 3.0 10.6 ------------------------------------------------ ------ ----------- ------------ ------------ Finance income (net) 0.4 ------------------------------------------------ ------ ----------- ------------ ------------ Profit before taxation 11.0 Taxation 6 (2.9) ------------------------------------------------ ------ ----------- ------------ ------------ Profit for the year from continuing operations 8.1 ------------------------------------------------ ------ ----------- ------------ ------------ Net debt 10 (14.2) ------------------------------------------------ ------ ----------- ------------ ------------ There are no differences from the last Annual Report in the basis of segmentation or in the basis of measurement of segment profit or loss. 3. Non-GAAP measures Condensed Consolidated Income Statement 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm --------------------------------------------------------------- ------------ ------------ ---------- Profit before taxation from continuing operations 7.0 6.3 11.0 Adjusted for: IAS 19R administrative expenses 0.8 0.8 1.7 Acquisition related costs 2.6 0.5 2.2 Exceptional operating items (2.3) (0.3) 2.5 Amortisation of costs of raising debt finance 0.1 0.1 0.1 Amortisation of costs of raising debt finance - exceptional - 0.4 0.4 Net movement on fair value of derivative financial instruments 0.5 (1.6) (3.3) Discount on property lease provisions - - 0.1 IAS 19R finance cost 0.7 0.5 1.1 --------------------------------------------------------------- ------------ ------------ ---------- Underlying profit before taxation 9.4 6.7 15.8 Taxation attributable to underlying profit before taxation (2.1) (1.7) (2.8) --------------------------------------------------------------- ------------ ------------ ---------- Underlying earnings 7.3 5.0 13.0 --------------------------------------------------------------- ------------ ------------ ---------- The Directors believe that underlying profit before taxation and underlying earnings provide shareholders with additional useful information on the underlying performance of the Group. Underlying profit before taxation is defined as profit before taxation, IAS 19R administrative expenses, acquisition related costs, exceptional operating items, exceptional finance costs, amortisation of costs of raising finance, net movement on fair value of derivative financial instruments, discounting of property lease provisions and finance costs relating to pension schemes. 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm -------------------------------------------- ------------ ------------ ---------- Operating profit from continuing operations 8.8 6.4 10.6 Adjusted for: Depreciation 2.9 3.0 6.0 IAS 19R administrative expenses 0.8 0.8 1.7 Acquisition related costs 2.6 0.5 2.2 Exceptional operating items (2.3) (0.3) 2.5 -------------------------------------------- ------------ ------------ ---------- Underlying EBITDA 12.8 10.4 23.0 -------------------------------------------- ------------ ------------ ---------- (MORE TO FOLLOW) Dow Jones Newswires November 12, 2015 02:01 ET (07:01 GMT) EBITDA is a measure commonly used by investors and financiers to assess business performance. Underlying EBITDA has been provided which reflects EBITDA as adjusted for IAS 19R administrative expenses, acquisition related costs and exceptional operating items. The Directors consider that these measures provide shareholders with additional useful information on the performance of the Group. Condensed Consolidated Statement of Cash Flow 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm ----------------------------------------------------------------------------- ------------ ------------ ---------- Cash generated from continuing operations (note 10) 12.9 9.9 16.1 Adjusted for: Cash (inflows)/outflows from exceptional items and acquisition related costs (0.7) 0.7 4.7 Pension fund deficit recovery contributions 1.1 1.0 2.1 ----------------------------------------------------------------------------- ------------ ------------ ---------- Underlying operating cash flow 13.3 11.6 22.9 ----------------------------------------------------------------------------- ------------ ------------ ---------- Underlying operating cash flow is defined as cash generated from continuing operations before cash outflows from exceptional items and pension fund deficit recovery contributions. The Directors believe that underlying operating cash flow provides shareholders with additional useful information on the underlying cash generation of the Group. 4. Acquisition related costs and exceptional operating items An analysis of acquisition related costs and exceptional operating items is shown below. 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm --------------------------------- ------------ ------------ ---------- Acquisition related costs Deferred remuneration(1) 1.2 0.3 1.1 Intangible asset amortisation(2) 0.3 0.2 0.3 Staff costs and advisory fees(3) 1.1 - 0.8 --------------------------------- ------------ ------------ ---------- 2.6 0.5 2.2 --------------------------------- ------------ ------------ ---------- 1 Consideration payable to the former shareholders of Vado and Croydex which is required to be treated as remuneration and, accordingly, is expensed to the income statement as incurred. 2 Non-cash amortisation charges in respect of intangible assets recognised following the acquisitions of Vado and Croydex. 3 Costs of maintaining an in-house acquisitions department and professional advisory fees incurred in connection with the Group's business combination activities. In the 6 months to 30 September 2015 this included GBP0.8m in connection with the acquisition of Croydex. 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm ------------------------------------------ ------------ ------------ ---------- Exceptional operating items Legal claim(1) (1.9) 0.1 0.3 Pension scheme settlement gain(2) (0.4) - (1.7) Profit on disposal of surplus property(3) - (0.4) (0.4) Sheffield lease surrender(4) - - 2.5 Loss on disposal of property portfolio(5) - - 1.5 Restructuring costs(6) - - 0.3 (2.3) (0.3) 2.5 ------------------------------------------ ------------ ------------ ---------- 1 The legal claim relating to the land at the Highgate site in Tunstall, UK was settled in the period. Under the terms of the settlement with Wm Morrison Supermarkets plc the Group received a payment of GBP2.0m. Costs in connection with the claim of GBP0.1m were incurred in the period (2014: GBP0.1m). 2 The Group implemented a liability management exercise in the previous year in connection with its principal UK defined benefit pension scheme. This resulted in a further settlement gain of GBP0.4m being recognised in the period in addition to the GBP1.7m gain in the previous year. 3 A profit of GBP0.4m was generated in the previous year following the sale of a small parcel of land in Braintree, UK. 4 In the previous year the Group exited its onerous lease in connection with the Orgreave Drive, Sheffield property at a cost of GBP2.5m. 5 The Group's remaining surplus freehold property portfolio was sold to Clowes Developments (UK) Ltd in March 2015 for net proceeds of GBP6.1m, leading to a loss on disposal of GBP1.5m. 6 Restructuring costs related to redundancies and asset write-downs as a result of restructuring initiatives throughout the Group's business units. 5. Earnings per share Basic and diluted earnings per share Basic earnings per share (EPS) is calculated by dividing the profit attributable to shareholders by the weighted average number of ordinary shares in issue during the year, excluding those held in the Norcros Employee Benefit Trust. For diluted EPS, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all potential dilutive ordinary shares. As described in note 9, on 29 September 2015 the Company consolidated its existing ordinary shares of 1p each into new ordinary shares of 10p each. In order to effect fair comparison, the comparative figures for share numbers and earnings per share have been restated to reflect the impact of the share consolidation. The calculation of EPS is based on the following profits and numbers of shares: 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm --------------------------------------------------- ------------ ------------ ---------- Profit for the period from continuing operations 5.4 4.7 8.1 Profit for the period from discontinued operations - 0.1 0.1 --------------------------------------------------- ------------ ------------ ---------- Profit for the period 5.4 4.8 8.2 --------------------------------------------------- ------------ ------------ ---------- 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) Number Number Number (restated) (restated) ----------------------------------------------------------------- ------------ ------------ ----------- Weighted average number of shares for basic earnings per share 60,126,284 58,959,370 59,223,135 Share options and warrants 1,902,048 2,159,547 2,303,299 Weighted average number of shares for diluted earnings per share 62,028,332 61,118,917 61,526,434 ----------------------------------------------------------------- ------------ ------------ ----------- 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014 2015 (unaudited) (audited) (unaudited) (restated) (restated) ----------------------------- ------------ ------------ ----------- Basic earnings per share: From continuing operations 9.0p 8.0p 13.6p From discontinued operations - 0.2p 0.2p ----------------------------- ------------ ------------ ----------- From profit for the period 9.0p 8.2p 13.8p (MORE TO FOLLOW) Dow Jones Newswires November 12, 2015 02:01 ET (07:01 GMT) ----------------------------- ------------ ------------ ----------- Diluted earnings per share: From continuing operations 8.7p 7.7p 13.1p From discontinued operations - 0.2p 0.2p ----------------------------- ------------ ------------ ----------- From profit for the period 8.7p 7.9p 13.3p ----------------------------- ------------ ------------ ----------- Basic and diluted underlying earnings per share Basic and diluted underlying earnings per share have also been provided which reflect underlying earnings from continuing operations divided by the weighted average number of shares set out above. 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm -------------------------------------------- ------------ ------------ ---------- Underlying earnings for the period (note 3) 7.3 5.0 13.0 -------------------------------------------- ------------ ------------ ---------- 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) -------------------------------------- ------------ ------------ ---------- Basic underlying earnings per share 12.2p 8.4p 21.9p Diluted underlying earnings per share 11.8p 8.1p 21.1p -------------------------------------- ------------ ------------ ---------- 6. Taxation Taxation comprises: 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm -------------------------------------------------- ------------ ------------ ---------- Current UK taxation 0.5 0.5 0.4 Deferred Origination and reversal of temporary differences 1.1 1.1 2.5 -------------------------------------------------- ------------ ------------ ---------- Taxation 1.6 1.6 2.9 -------------------------------------------------- ------------ ------------ ---------- Current tax expense is recognised based on management's estimate of the weighted average annual income tax rate expected for the full financial year. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority. Deferred tax is calculated in full on temporary differences under the liability method. The movement on the deferred tax account is as shown below: 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm -------------------------------------------------------- ------------ ------------ ---------- Deferred tax asset at the beginning of the period 13.8 11.6 11.6 Charged to the income statement (1.1) (1.1) (2.5) (Charged)/credited to statement of comprehensive income (0.4) 3.7 4.7 Acquisitions (see note 13) (0.8) - - Exchange movement (0.3) (0.1) - -------------------------------------------------------- ------------ ------------ ---------- Deferred tax asset at the end of the period 11.2 14.1 13.8 -------------------------------------------------------- ------------ ------------ ---------- At At At 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm ----------------------------------------------- ------------ ------------ --------- Accelerated capital allowances 2.6 2.9 2.7 Tax losses 2.5 3.8 3.3 Other timing differences (2.4) (0.7) (1.1) Deferred tax asset relating to pension deficit 8.5 8.1 8.9 ----------------------------------------------- ------------ ------------ --------- 11.2 14.1 13.8 ----------------------------------------------- ------------ ------------ --------- 7. Finance income and costs 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm ----------------------------------------------------------- ------------ ------------ ---------- Finance costs Interest payable on bank borrowings 0.5 0.7 1.2 Amortisation of costs of raising debt finance 0.1 0.1 0.1 Movement on fair value of derivative financial instruments 0.5 - - Unwind of discount on property lease provisions - - 0.1 ----------------------------------------------------------- ------------ ------------ ---------- Finance costs 1.1 0.8 1.4 ----------------------------------------------------------- ------------ ------------ ---------- Exceptional finance costs(1) - 0.4 0.4 ----------------------------------------------------------- ------------ ------------ ---------- Total finance costs 1.1 1.2 1.8 ----------------------------------------------------------- ------------ ------------ ---------- Finance income Movement on fair value of derivative financial instruments - (1.6) (3.3) ----------------------------------------------------------- ------------ ------------ ---------- Total finance income - (1.6) (3.3) ----------------------------------------------------------- ------------ ------------ ---------- 1 Following the refinancing of the Group's banking facilities in July 2014, the unamortised costs relating to the previous facility were written off in full. 8. Borrowings At At At 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm --------------------------------- ------------ ------------ --------- Non-current Bank borrowings (unsecured): - bank loans 33.0 21.0 19.0 - less: costs of raising finance (0.5) (0.6) (0.6) --------------------------------- ------------ ------------ --------- Total non-current 32.5 20.4 18.4 --------------------------------- ------------ ------------ --------- Current Bank borrowings (unsecured): - bank overdrafts 4.5 4.1 1.4 --------------------------------- ------------ ------------ --------- Total borrowings 37.0 24.5 19.8 --------------------------------- ------------ ------------ --------- The fair value of bank loans equals their carrying amount as they bear interest at floating rates. (MORE TO FOLLOW) Dow Jones Newswires November 12, 2015 02:01 ET (07:01 GMT) The repayment terms of borrowings are as follows: At At At 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm ----------------------------------------------------- ------------ ------------ --------- Not later than one year 4.5 4.1 1.4 ----------------------------------------------------- ------------ ------------ --------- After more than one year: - between one and two years - - - - later than two years and not later than five years 33.0 21.0 19.0 - costs of raising finance (0.5) (0.6) (0.6) ----------------------------------------------------- ------------ ------------ --------- 32.5 20.4 18.4 ----------------------------------------------------- ------------ ------------ --------- Total borrowings 37.0 24.5 19.8 ----------------------------------------------------- ------------ ------------ --------- In July 2014 the Group agreed an unsecured GBP70m revolving credit facility with a GBP30m accordion facility with Lloyds Bank plc, Barclays Bank plc and HSBC Bank plc. The banking facility is in force for five years to July 2019. Net debt The Group's net debt is calculated as follows: At At At 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm -------------------------- ------------ ------------ --------- Cash and cash equivalents (7.8) (4.5) (5.6) Total borrowings 37.0 24.5 19.8 -------------------------- ------------ ------------ --------- Net debt 29.2 20.0 14.2 -------------------------- ------------ ------------ --------- 9. Called up share capital At At At 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm --------------------------------------- ------------ ------------ --------- Issued and fully paid 60,995,930 ordinary shares of 10p each 6.1 - - 594,917,377 ordinary shares of 1p each - 5.9 6.0 --------------------------------------- ------------ ------------ --------- Total 6.1 5.9 6.0 --------------------------------------- ------------ ------------ --------- Following the approval by shareholders of the consolidation of 1p ordinary shares into ordinary shares of 10p at the Annual General Meeting of the Company held on 22 July 2015, the Company duly completed the share capital consolidation with a record date of 29 September 2015. As a result of the consolidation, the ordinary shares of 1p each were amended to new ordinary shares of 10p each. The share consolidation had no impact on the value of the Company's issued and fully paid share capital. 10. Consolidated Cash Flow Statements (a) Cash generated from continuing operations 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm ------------------------------------------------------------------------------ ------------ ------------ ---------- Profit before taxation 7.0 6.3 11.0 Adjustments for: - IAS 19R administrative expenses included in the above 0.8 0.8 1.7 - acquisition related costs included in the above 2.6 0.5 2.2 - exceptional operating items included in the above (2.3) (0.3) 2.5 - cash inflows/(outflows) from exceptional items and acquisition related costs 0.7 (0.7) (4.7) - depreciation 2.9 3.0 6.0 - pension fund deficit recovery plan contributions (1.1) (1.0) (2.1) - loss on disposal of property, plant and equipment - - 0.1 - total finance costs 1.1 1.2 1.8 - finance income - (1.6) (3.3) - IAS 19R finance cost 0.7 0.5 1.1 - share-based payments 0.7 0.6 1.3 ------------------------------------------------------------------------------ ------------ ------------ ---------- Operating cash flows before movements in working capital 13.1 9.3 17.6 Changes in working capital: - increase in inventories (4.4) (1.4) (2.0) - increase in trade and other receivables (1.0) (0.8) (1.4) - increase in payables 5.2 2.8 1.9 ------------------------------------------------------------------------------ ------------ ------------ ---------- Cash generated from continuing operations 12.9 9.9 16.1 ------------------------------------------------------------------------------ ------------ ------------ ---------- Cash flows from exceptional items includes expenditure charged to exceptional provisions relating to onerous lease costs, acquisition related costs (excluding deferred remuneration) and other business rationalisation and restructuring costs. (b) Cash generated from discontinued operations 6 months to 6 months to Year ended 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm --------------------------------------------------------- ------------ ------------ ---------- Profit before taxation - - - Adjustments for: - depreciation - - - --------------------------------------------------------- ------------ ------------ ---------- Operating cash flows before movements in working capital - - - Changes in working capital: - decrease in inventories - 0.4 0.4 - increase in trade and other receivables - (0.1) (0.1) - decrease in payables - (0.2) (0.2) --------------------------------------------------------- ------------ ------------ ---------- Cash generated from discontinued operations - 0.1 0.1 --------------------------------------------------------- ------------ ------------ ---------- Cash generated from operations 12.9 10.0 16.2 --------------------------------------------------------- ------------ ------------ ---------- (MORE TO FOLLOW) Dow Jones Newswires November 12, 2015 02:01 ET (07:01 GMT) (c) Analysis of net debt Cash included within Cash and assets held-for-sale overdrafts Debt Total GBPm GBPm GBPm GBPm ------------------------- -------------------- ---------- ------ ------ At 1 April 2014 0.5 3.2 (30.6) (26.9) Cash flow (0.5) 1.1 12.1 12.7 Other non-cash movements - - 0.1 0.1 Exchange movement - (0.1) - (0.1) ------------------------- -------------------- ---------- ------ ------ At 31 March 2015 - 4.2 (18.4) (14.2) ------------------------- -------------------- ---------- ------ ------ At 1 April 2014 0.5 3.2 (30.6) (26.9) Cash flow (0.5) (2.7) 10.1 6.9 Other non-cash movements - - 0.1 0.1 Exchange movement - (0.1) - (0.1) ------------------------- -------------------- ---------- ------ ------ At 30 September 2014 - 0.4 (20.4) (20.0) ------------------------- -------------------- ---------- ------ ------ At 1 April 2015 - 4.2 (18.4) (14.2) Cash flow - (0.1) (14.0) (14.1) Other non-cash movements - - (0.1) (0.1) Exchange movement - (0.8) - (0.8) ------------------------- -------------------- ---------- ------ ------ At 30 September 2015 - 3.3 (32.5) (29.2) ------------------------- -------------------- ---------- ------ ------ 11. Dividends A final dividend in respect of the year ended 31 March 2015 of GBP2.2m (0.375p per 1p ordinary share) was paid on 29 July 2015. On 12 November 2015 the Board declared an interim dividend in respect of the year ended 31 March 2016 of GBP1.3m (2.2p per 10p ordinary share). This dividend will be paid on 7 January 2016 and is not reflected in this condensed consolidated interim financial information. 12. Retirement benefit obligations (a) Pension costs Norcros Security Plan The Norcros Security Plan (the "Plan"), the principal UK pension scheme of Norcros plc subsidiaries, is funded by a separate trust fund which operates under UK trust law and is a separate legal entity from the Company. The Plan is governed by a Trustee board which is required by law to act in the best interests of the Plan members and is responsible for setting policies together with the Company. It is predominantly a defined benefit scheme with a modest element of defined contribution benefits. The valuation used for IAS 19R disclosures has been produced by KPMG, a firm of qualified actuaries, to take account of the requirements of IAS 19R in order to assess the liabilities of the scheme at 30 September 2015. Scheme assets are stated at their market value at 30 September 2015. (b) IAS 19R, 'Retirement benefit obligations' The principal assumptions used to calculate the scheme liabilities of the Norcros Security Plan under IAS 19R are: At At At 30 September 30 September 31 March 2015 2014 2015 --------------------- ------------ ------------ -------- Discount rate 3.80% 3.90% 3.30% Inflation rate (RPI) 3.00% 3.05% 2.90% Inflation (CPI) 2.00% 2.05% 1.90% Salary increases 2.25% 3.30% 2.15% --------------------- ------------ ------------ -------- The amounts recognised in the Condensed Consolidated Balance Sheet are determined as follows: At At At 30 September 30 September 31 March 2015 2014 2015 (unaudited) (unaudited) (audited) GBPm GBPm GBPm ------------------------------------ ------------ ------------ --------- Total market value of scheme assets 367.8 385.0 397.0 Present value of scheme liabilities (410.2) (425.6) (441.3) ------------------------------------ ------------ ------------ --------- Pension deficit (42.4) (40.6) (44.3) ------------------------------------ ------------ ------------ --------- 13. Business combinations On 25 June 2015, the Group acquired 100% of the ordinary share capital of Croydex Group Limited ("Croydex"), a market leading, innovative designer, manufacturer and distributor of high quality bathroom furnishings and accessories. The acquisition of Croydex is an important next step in the Group's growth strategy to increase revenue to GBP420m by 2018 and follows on from the very successful integration of the Vado business, which Norcros acquired in March 2013. Adding the Croydex business to the Group's existing portfolio will increase the breadth of our product range in the bathroom segment and enable the Group to offer an even broader range of complementary bathroom products to our customers. Croydex will also benefit from the global distribution channels, sourcing skills and strong financial position of the enlarged Group. Croydex is incorporated in England and is based in Andover, Hampshire. The following table summarises the consideration paid for Croydex and the provisional fair value of the assets acquired and the liabilities assumed: GBPm ------------------------- ----- Consideration Cash 20.8 Deferred consideration 1.1 ------------------------- ----- 21.9 ------------------------ ----- GBPm --------------------------------------------------- --------- Recognised amounts of identifiable assets and liabilities Intangible assets 7.9 Property, plant and equipment 1.6 Inventories 2.8 Trade and other receivables 5.0 Cash 3.5 Trade and other payables (5.7) Current tax liabilities (0.2) Deferred tax liability (0.8) Total identifiable net assets 14.1 --------------------------------------------------- --------- Goodwill 7.8 Total 21.9 --------------------------------------------------- --------- Due to the proximity of the acquisition date to the date of this interim statement it has not been possible for the Group to finalise the fair values of Croydex's assets and liabilities. The provisional fair value adjustments reflect the preliminary assessment of the value of acquired intangible assets of GBP7.9m, the revaluation of the leasehold property of GBP0.9m, and a deferred tax liability of GBP1.0m mainly arising from the recognition of acquired intangible assets. A full review of the fair values of the identifiable assets and liabilities will take place over the coming months with the expectation that a revised position will be presented in the Group's Annual Report for the year ended 31 March 2016. In most business combinations there is an element of cost which cannot be allocated against the individual assets and liabilities acquired. This residual amount is recognised as goodwill and is supported by a number of factors which do not meet the criteria required for them to be treated as intangible assets. In this case the most significant elements relate to Croydex's unique product portfolio and its knowledgeable workforce. It is not expected at this stage that any of the goodwill will be deductible for tax purposes. The fair value of trade and other receivables is GBP5.0m, which includes trade receivables with a fair value of GBP4.6m. The gross contractual amount for trade receivables due is GBP4.8m, of which GBP0.2m is expected to be uncollectible. Costs relating to the transaction of GBP0.8m have been expensed to the Consolidated Income Statement and included within acquisition related costs. The deferred consideration of GBP1.1m is unconditional and will be paid in the year ended 31 March 2019. As part of the transaction, a long-term incentive scheme has been put in place for the Croydex Managing Director which is dependent on the financial performance of Croydex over the next three years. The maximum amount and current expectation is that GBP0.9m will be payable under this scheme which will be treated as deferred remuneration and included within acquisition related costs in the Consolidated Income Statement. The revenue included in the Condensed Consolidated Statement of Comprehensive Income since 25 June 2015 contributed by Croydex was GBP5.8m. Over the same period, Croydex contributed profit after tax of GBP0.6m. Had Croydex been consolidated from the beginning of the period, the Condensed Consolidated Statement of Income would have shown pro-forma revenue of GBP123.7m and pro-forma profit after tax of GBP5.6m. (MORE TO FOLLOW) Dow Jones Newswires November 12, 2015 02:01 ET (07:01 GMT)