How to Retile a Bathroom Wall | Home Guides

Read article : How to Retile a Bathroom Wall | Home Guides

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Add interest to grid-style pattern tiles by varying tile colors.

Updating the look of your bathroom does not have to be a daunting complete remodel. Remove old tiles and replace them with new tiles, avoiding the demolition involved with tearing down whole walls. It requires a little more effort to remove just the tiles, but that effort saves you thousands on replacing drywall or cement backer board and you will not have to worry about damaging electrical wires or plumbing behind the wall. No previous tiling experience is needed, but you will need an alternate place to bathe for a few days.

Cover the bathroom floor, vanity cabinet, bathtub and toilet with plastic sheeting. Tape down the sheeting so that it does not move while you work. If removing tile behind the toilet, take out the toilet and set it in the bathtub.

Score grout and caulk joints with a utility knife. Insert a chisel behind one tile and hammer the end of it until the tile pops off the wall. Continue popping tiles off the wall in this manner until you have removed all tiles.

Scrape the wall with the flat side of the trowel to remove all the old thinset. Drag the trowel along the wall until no dried thinset remains.

Repair damaged areas by replacing drywall. Fill in small holes, dips or uneven areas with drywall compound. Leave the compound to dry according to the manufacturer's specifications.

Use a chalk line tool to mark lines for the tile installation. Mark a line at the intended height of the tiles if you are not covering the entire wall. Mark a line along the vertical centers of each wall, then mark a line on each wall the height of one tile up from the floor. These lines serve as guides during installation and help you keep the tiles straight.

Mix a fresh batch of thinset, about as much as you can use in 30 minutes. Stir in a latex additive and continue mixing until the thinset is the consistency of peanut butter. Use a paddle mixer attachment on an electric drill for faster mixing.

Lift a dollop of thinset with the trowel and spread it over a 3-foot-square section of the wall along the bottom at the horizontal center chalk line of one wall. Spread the thinset the same thickness as the tiles. For example, if your tiles are 1/4-inch thick, then spread the thinset 1/4-inch thick. Rake the notched edge of the trowel through the thinset to create furrows.

Set the first tile into the thinset immediately to the left of the horizontal chalk line. Line up the tile with the both chalk lines. Press the tile into the wall gently to set it. Install the second tile immediately to the right of the chalk line in the same manner, then insert spacers between the two tiles to maintain even spacing.

Hold a level across the surface of the tiles to verify that they are even. If uneven, tap the tiles with a rubber mallet to level them.

Install one more tile to the left and right of those two tiles, inserting spacers between each one and then checking to make sure all tiles are level. Continue installing tiles in this manner until you have reached both ends of the wall. Start a second row, tiling in the same manner and inserting spacers below and between the tiles for proper spacing.

Measure perimeter tiles by holding them up to the wall so that one side touches the end of the wall and the other side overlaps the last fill tile installed on the row. Insert two spacers between the tile and the wall. Mark the tile where it overlaps and cut along that line with a wet saw.

Measure tiles to fit around fixtures in the same manner, then nip the excess tile away to create curves or L-shaped cuts. For circular cuts in the middle of the tile, cover the approximate area with masking tape and mark the hole on the tile by holding it up to the fixture and tracing around it. Cut the hole 1/4-inch wider than your traced mark using a tile cutting bit attached to a drill. Remove the masking tape. Install cut tiles just as you did the full-sized tiles.

Continue installing rows in this manner until you have one wall complete. Cut the perimeter tiles for each row as you come to them. Your wall is not perfectly straight all the way up and cutting them all at once results in excess waste.

Leave the thinset to cure for 24 hours. Avoid showering, bathing or splashing water on the wall during this time. Leave the plastic sheeting in place.

Remove the spacers and discard. Prepare a bucket of fresh water and drop the sponge into it. Mix a batch of grout according to the manufacturer's instructions.

Lift a dollop of grout with the rubber grout float. Hold the float at a 45-degree angle to the tiles and drag it diagonally across the gaps between the tiles. Fill in the gaps around one tile and wipe the surface of that tile with the damp sponge. Avoid grouting at the wall corners, immediately around bathroom fixtures and between the bathtub or shower and the start of the tiles.

Continue grouting tiles in this manner for 20 minutes, then change the water in the sponge bucket and wipe down all the tiles you grouted again. This removes any haze before it dries on the tiles. After removing the haze, continue grouting and wiping tiles for 20 more minutes, then repeat this process.

Leave the grout to cure for 24 hours. Once cured, caulk between the tiles and bathtub or shower, around bathroom fixtures and at the corners between walls. Remove the plastic sheeting and masking tape. Leave the caulk to cure according to the manufacturer's instructions.

Things You Will Need

• Plastic sheeting
• Masking tape
• Utilitiy knife
• Chisel
• Hammer
• Notched trowel
• Drywall compound
• Chalk line tool
• Thinset
• Paddle mixer attachment
• Drill
• Spacers
• Level
• Wet saw
• Tile nippers
• Tile cutting bit
• 5-gallon bucket
• Sponge
• Rubber grout float
• Water-resistant silicone caulk

Tips

• Use your finger to pack grout into areas where the float will not fit.
• Buff off dried-on grout haze with a clean, dry sponge.
• Cut out sections of the wall instead of removing individual tiles if you intend to replace the wall behind the tiles as well.

Utopia Brochure Pages 201 - 244 - Text Version

Read article : Utopia Brochure Pages 201 - 244 - Text Version

sanitaryware and baths 201

symmetry shower bathWith the same stunning curves as the furniture range, the Symmetry shower bath is the ideal solution for a recess or corner. The optional curved shower screen is perfectly contoured to the edge of the bath. The Symmetry shower bath can be fitted with a storage unit to add useful extra space for toiletries and cleaning products. 2140mm with storage unit 1695mm without storage unit845mm symmetry shower screen right hand bath shown 1500mm left hand bath shown 885mm

symmetry shower bath 203

definity shower bath The Definity bath is cleverly designed for those who need both a bath and shower but are limited for space.The Definity shower screen has a high performance seal and features dual-direction opening for ease of cleaning and access. 1700mm 700mm850mm left handed bath shown 1500mm Dual direction pivot definity shower screen 197 809mm mm

dualelle shower bath definith and dualelle shower baths Dualelle baths are available in two sizes and are double-ended for practical use, comfort and planning flexibility. Complementary single or double panel bath screens are available in the range. 1700mm700mm / 750mmdualelle double dualelle single panel shower panel shower screen screen 1400mm 1400mm 1050mm 800mm 205

deluxe mirrors all deluxe utopia mirrors feature illumination, sensor operation and a built-in demister.600 x 800mm deluxe 1200 x 450mm deluxe magnifying mirror 1000 x 450mm deluxe eclipse mirror magnifying mirror 1200 x 450mm deluxe eclipse mirror 1200 x 450mm deluxe designer mirror all colours available 700 x 800mm deluxe eclipse mirror600 x 800mm deluxe 1200 x 450mm / 1600 x 500mm designer mirror deluxe modular mirrors all colours available available in all colours

mirrors and mirror units 1000 x 450mm deluxe outline mirror 935 x 450mm deluxe encurva mirror650 x 800mm deluxe outline mirror 1200 x 450mm deluxe outline mirror1270 x 500mm deluxe symmetry mirror 1200 x 500mm deluxe symmetry mirror 207

standard mirrors 400 x 660mm 500 x 660mm 600 x 660mm 700 x 660mm 800 x 660mm 660mm high frameless mirror on 16mm colour co-ordinated back 1600 x 500mm modular mirror on 50mm colour co-ordinated back400 x 850mm 1200 x 450mm modular mirror on 50mm colour co-ordinated back500 x 850mm600 x 850mm700 x 850mm800 x 850mm850mm high framelessmirror on 16mm colourco-ordinated back

mirrors and mirror units 1270 x 500mm symmetry mirror on 50mm colour co-ordinated back550 x 850mm or 700 x 850mm contemporary framed mirror 1204 x 500mm symmetry mirror on 50mm colour co-ordinated back500 x 1600mm 935 x 500mm encurva mirror on 50mm colour co-ordinated backmirror towel rail 209

classic mirrors and mirror cabinets 550 x 696mm 650 x 696mm 400 x 660mm 1200 x 696mm 500 x 660mm 600 x 660mm 696mm high downton 700 x 660mm illuminated mirror available 800 x 660mm in all downton finishes 660mm high downton framed mirror available in all fitted finishes550mm x 696mm 650mm x 696mmdownton single door downton doublemirror unit available in door mirror unitall downton finishes available in all downton finishes

sliding mirror cabinet features LED lighting and shaver socket 1200 x 750mm and 1600 x 750mm available in all 50mm laminate finishesmirror cabinets available in a wide range of sizes. see our pricelist for all options.250 x 660mm 500 x 660mm300 x 660mm 600 x 660mm350 x 660mm 700 x 660mm400 x 660mm 800 x 660mmsingle full mirror cabinet double full mirroravailable in all fitted cabinet available in allcarcass options fitted carcass options 211

quantum accessories spa accessoriesquantum robe hook quantum toilet roll holder spa robe hook spa toilet roll holder65 x 40 x 10mm 140 x 35 x 75mm 18 x 18 x 28mm 165 x 25 x 75mmquantum glass shelf spa glass shelf500 x 130 x 30mm 460 x 165 x 38mm spa towel ring 168 x 170 x 38mmquantum towel rail600 x 75 x 30mm quantum towel ring spa towel rail 220 x 75 x 30mm 628 x 25 x 75mm

accessories 213

palermo accessoriespalermo toilet roll holder palermo robe hook180 x 75 x 30mm 60 x 45 x 30mm palermo towel ring palermo glass shelf 200 x 113 x 73mm 530 x 140 x 30mm palermo towel rail 660 x 70 x 30mm

accessories 215

cascata brassware all cascata brassware is pressure tested and guaranteed for 10 years cascata basin cascata fall basin cascata fall wide basin cascata bath fillermonobloc mixer tap* monobloc mixer tap* monobloc mixer tap* includes click-clack waste includes click-clack waste includes click-clack wastecascata manual concealed cascata dual control thermostatic fixed rectangular drench head with shower valve concealed shower valve straight arm 10” x 6”suitable for high and low pressure systems, only suitable for high pressure systems * not suitable for use with the quantum square and quantum roundoperating at 0.2 BAR and above. operating at 1.0 BAR and above. short projection and quantum round cloakroom semi-recessed basins

cascata brassware cascata bath shower mixercascata wall-mounted bath shower mixer 217

savio brassware all savio brassware is pressure tested and guaranteed for 10 years savio basin savio hot and cold basin taps savio three hole basin savio three hole wall-mountedmonobloc mixer tap mixer tap set basin mixer tap set includes click-clack waste includes click-clack waste includes click-clack waste includes click-clack waste savio bath filler savio hot and cold bath taps savio bath shower mixersuitable for high and low pressure systems,operating at 0.2 BAR and above.

savio brassware 219

reo brassware all reo brassware is pressure tested and guaranteed for 10 yearsreo basin short projection reo basin reo hot and cold bath taps reo bath filler monobloc mixer tap* monobloc mixer tap* includes click-clack waste includes click-clack waste reo thermostatic reo three handle reo bar shower mixer concealed thermostatic shower valve concealed shower valve reo thermostatic concealed shower reo three handle valve and thermostatic diverter concealed shower valve with twosuitable for high and low pressure systems, way diverteroperating at 0.2 BAR and above. only suitable for high pressure systems * not suitable for use with the quantum round short projection operating at 1.0 BAR and above. and cloakroom semi-recessed basins

reo brasswarefixed square drench head with curved arm 8”square shower wall elbowreo built-in stopcock reo square sliding rail shower kit with single flow handset 221

salino brassware all salino brassware is pressure tested and guaranteed for 10 years salino basin salino three hole salino deck-mounted salino three holemonobloc mixer tap basin mixer tap set bath valves bath filler set includes pop-up waste includes pop-up waste salino four hole salino concealed fixed rectangular drench head salino concealedbath shower mixer thermostatic shower valve with straight arm 10” x 6” flow valve

scalsinpoiabarnadssswalainreo brassware 223

della brassware all della brassware is pressure tested and guaranteed for 10 yearsdella short projection basin della basin monobloc della bath filler della bath shower mixer monobloc mixer tap mixer tap includes click-clack waste includes click-clack wastedella thermostatic concealed della thermostatic concealedshower valve shower valve with integral flow valvedella thermostatic concealed della thermostatic concealedshower valve with two way diverter shower valve with 2 way diverterdella thermostatic concealedshower valve with four way diverter della thermostatic bar shower valvesuitable for high and low pressure systems, only suitable for high pressure systemsoperating at 0.2 BAR and above. operating at 1.0 BAR and above.

della brasswareoval shower wall elbow fixed oval drench head with angled arm 10”della oval sliding rail shower kit della oval sliding rail shower kit with single flow handset and with single flow handsetthermostatic bar shower valve 225

paleto brassware all paleto brassware is pressure tested and guaranteed for 5 yearspaleto basin monobloc mixer tap* paleto three hole bath mixer includes click-clack waste paleto bath tap and overflow filler* not suitable for use with the quantum square and quantum round short projection and quantum round cloakroom semi-recessed basins

cpaasleptioa banradssawlainroe brassware 227

caspia brassware all caspia brassware is pressure tested and guaranteed for 10 years caspia basin caspia hot and cold bath tapsmonobloc mixer tap includes click-clack wastecaspia bath filler caspia bath shower mixersuitable for high and low pressure systems, only suitable for high pressure systemsoperating at 0.2 BAR and above. operating at 1.0 BAR and above.

razo brassware all razo and lana brassware and bath wastes are lana wall mounted tap caspia,arnadzosanlindolabnrasbsrwaassreware, waste and accessories fully tested and guaranteed for 10 yearsrazo short projection basin razo basin monobloc lana three hole wall-mounted basin mixer monobloc mixer tap mixer tap wastes and accessories includes click-clack waste includes click-clack waste bath waste and overflow with mushroom spring plugrazo bath filler razo bath shower mixer combined bath fill and overflow - 580mmsuitable for high and low pressure systems, only suitable for high pressure systemsoperating at 0.2 BAR and above. operating at 1.0 BAR and above. combined bath fill and overflow - 900mm 229

aras shower kits all aras shower kits, drench heads and wall elbows are fully tested and guaranteed for 10 yearsaras round cylindrical bar valve aras square cylindrical bar valvewith telescopic overhead kit, with telescopic overhead kit,sliding holder, handset and ultra sliding holder, handset & ultrathin round drench head thin square drench headsuitable for high and low pressure systems, only suitable for high pressure systemsoperating at 0.2 BAR and above. operating at 1.0 BAR and above.

overhead soakers and elbows aras shower kits, overhead soakers and elbows fixed square drench head square shower wall elbow with curved arm 8” oval shower wall elbowfixed rectangular drench head with straight arm 10” x 6” fixed oval drench head with angled arm 10” 231

monochrome wall tiles arctic white matrix 70 x 25cm ceramic 33.3 x 20cm ceramic arctic waves linear white 70 x 25cm ceramic 33.3 x 20cm ceramic metropolitan white zinc white 90.2 x 30cm ceramic 33.3 x 20cm ceramic metropolitan grey moonlight grey 90.2 x 30cm ceramic 40 x 25cm ceramicall tiles are shown at 1:10 scale.

monochrome wall tiles 233

neutral wall tiles crema zumba ivory linen 33.3 x 20cm ceramic 40 x 25cm ceramic aluminium zumba natural créme 33.3 x 20cm ceramic 59.2 x 31.6cm ceramic aluminium canaletto crema canaletto 59.2 x 33.3cm ceramic 59.2 x 33.3cm ceramic all tiles are shown at 1:10 scale.

neutral wall tiles 235

brick wall tiles white brick ivory brick biscuit brick20 x 10cm ceramic 20 x 10cm ceramic 20 x 10cm ceramic taupe brick olive brick grey brick20 x 10cm ceramic 20 x 10cm ceramic 20 x 10cm ceramicall tiles are shown at 1:10 scale. the above brick patterns illustrate seven individual tiles.

brick wall tilesmustard brick20 x 10cm ceramic mink brick20 x 10cm ceramic 237

floor tiles zinc white crema canaletto fossil white cloud44.3 x 44.3cm ceramic 44.3 x 44.3cm ceramic 44.5 x 44.5cm porcelain 44.3 x 44.3cm ceramic natural créme bohemian beiges* bohemian blues* silver cloud44.3 x 44.3cm ceramic 44.5 x 44.5cm porcelain 60 x 60cm ceramic 44.3 x 44.3cm ceramicall tiles are shown at 1:10 scale. *these tiles are supplies as a random mix of up to four different pattern types, we cannot guarantee the mix supplied.

floor tiles 239

wood effect floor tilesash block oak block ebony block15 x 60cm 15 x 60cm 15 x 60cmporcelain porcelain porcelain frosted honeyed parquet weathered elm block elm block weathered elm block elm block 24.6 x 101cm 24.6 x 101cm 24.6 x 101cm porcelain porcelain 24.6 x 101cm porcelain rectified edge rectified edge porcelain rectified edge rectified edgeall tiles are shown at 1:10 scale.

wood effect floor tiles 241

The latest dining chairs

Read article : The latest dining chairs

Save money on your bathroom renovation with these tips and advice from industry experts. Includes advice on design, planning and choosing your materials.

Scroll down to read more or jump to a topic from the list below…

‘Keep your existing layout and consider functionality’

Nick Rowland, product manager at Heritage Bathrooms says: ‘The key to a successful renovation project is planning. As soon as you start repositioning plumbing the job can become very expensive, so stick to the existing layout if possible.

‘Although installers can find great deals, do your own research as well to see what other bargains are out there. Ask yourself whether you need the installer to fit the whole bathroom. What could you do yourself? Picking up the smaller, less technical tasks, such as hanging mirrors, putting up towel rails and painting walls, can lead to considerable savings. Check whether a “good price” really is value for money – does it offer quality? Will the product stand the test of time? Is it guaranteed by the manufacturer?

‘The only area where you may want to consider cutting corners by spending less is on fittings without a working function. For example, static pieces, such as a basin and pedestal, are only required to hold water and allow it to drain away. In contrast, the WC has more moving parts and the pan and cistern need to operate properly for years to come. With this in mind, I recommend only buying a WC from a recognised manufacturer that will understand its functional needs and will carefully manage the manufacturing process to ensure that the cistern and pan do not leak.

‘A bath needs to be robust enough to hold your weight as well as the water. If you are satisfied that this basic requirement has been met then you won’t need to spend money on baths with additional reinforcement, which have little benefit for domestic use.’
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‘Consider what you can do for yourself’

Jamey Seaman, bathroom expert at Ikea says: ‘There are many ways to make your budget go that bit further when it comes to improving your bathroom. It’s surprising just how much work you can do by yourself. Save money by purchasing ready-to-assemble basin and bathroom cabinets, and avoid paying someone else to fix units to the wall.

‘You can also make savings by buying a complete set of bathroom furniture, including a basin, cabinet and mirror, rather than individual pieces, which could cost more. You don’t have to blow your budget on bathroom storage all at once. Start by fitting storage beneath and above the sink and add more at a later date when you have the time and budget.’
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ABOVE (left-right): Venice shower-bath, (H)47x(W)85x(L)170cm, £525; basin and pedestal, (H)85x(W)60x (D)45cm, £273; close-coupled WC, (H)83x (W)36.5x(D)63cm, with cistern and soft-close seat, £432, all from the Zaar collection at Heritage Bathrooms; Godmorgon/Vitviken washstand with two drawers and porcelain basin, (H)66x(W)63x(D)49cm, £170; Dalskar chrome-plated basin mixer tap, (H)18cm, £65; Godmorgon mirror cabinet, (H)96x(W)60x(D)14cm, £180; high cabinets, (H)192x(W)40x(D)30cm, £150 each, all Ikea.

‘Mix inexpensive ceramic tiles with luxury mosaics’

Beth Boulton, head of marketing at Topps Tiles says: ‘Instead of tiling an entire room in expensive mosaics, keep down costs by using them sparingly as a feature wall or to zone a shower area.

‘With the latest advancements in the ceramic printing process, there are now ceramic tiles available featuring highly realistic interpretations of natural stone, marble and wood. By cutting sheets of tiles in half or into strips to create a vertical feature behind a basin, or a horizontal statement around a bath and corner of a shower, you can make a real impact without overspending.’
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‘Spend wisely and look out for bargains’

Rob Whitaker, brand director at Fired Earth says: ‘In general, you will get what you pay for. While cheaper products may look very similar to more expensive equivalents, they’re unlikely to have the same quality of finish or to last as long. For example, the chrome on very inexpensive taps may start to peel, or the surface of a bath may be more likely to crack or stain, so it is worth spending as much as you can afford to save money in the long term.

‘Think about installing a shower over the bath rather than building a separate shower area. As well as saving on product and installation costs, this is a good space-saving solution, too. If you would love a classic, freestanding cast-iron bath but it is beyond your budget, a bath made from a resin and stone composite is a great, cost-effective alternative. Factory shops often have fantastic bargains, so it’s well worth paying them a visit. If you can, it’s a good idea to wait for the winter and summer sales as the discounts on large items such as baths, washstands and boxes of tiles can be considerable.’
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ABOVE (left-right): Glossy flat ceramic wall tiles in white, (W)20x(L)25cm, £7.60 per m²; Slate square glass mosaic tiles in silver, £13.99 for a (W)30x(L)30cm sheet; large-format Crystal porcelain floor tiles in white, (W)44x (L)44cm, £49.54 per m², all Topps Tiles; Flow roll-top bath, made from resin and ground stone with chrome feet, painted in Mercury Eggshell, (H)66x (W)80x(L)175cm, £1,650; Avebury bath and shower mixer tap, (H)42x (W)18x(D)20cm, £1,125; Abbey Fountains porcelain floor tiles, (W)19.9x (L)19.9cm, £74.70 per m², all Fired Earth; Athena Black 1700 freestanding bath with chrome feet, (H)56x(W)75x(L)170cm, £349.95; Modena 60 Semi Pedestal bathroom suite with ceramic basin (H)48x(W)58.5x(D)39.5cm, and ceramic WC, (H)83.5x (W)37x(D)65cm, £179.95, all Better Bathrooms.

‘Think about selling your old suite’

Joe Cummings, product advisor at Better Bathrooms says: ‘The rising popularity of auction sites has provided a fantastic platform for selling secondhand items. Any unwanted fixtures in good condition are worth selling, from taps and basins to tiles. This is the perfect way to recoup some of the expense you have lavished on your new bathroom.

‘Labour costs are the greatest outlay in any renovation project, so try doing some of the work yourself. Demolition and debris removal, along with tiling and brassware installation are simple jobs even for the most novice of DIYers. There are installation videos on the Better Bathrooms website (betterbathrooms.com) offering step-by-step guidance on how to install a range of sanitaryware in your home yourself, including shower enclosures, basins and baths. This will help to eliminate high-cost construction bills. However, it’s not always a good idea to undertake all of the work a bathroom renovation entails yourself – this can end up costing you more rather than saving money. Large, technical jobs, including any changes in plumbing, will require experienced tradespeople, so shop around in order to find the right person for the task. You will need someone you trust who will do the job at the right price. Acquiring multiple quotes from different contractors will not only give you an estimate of the cost of the work, but will ensure the price is fair and help with your planning.’
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‘Research affordable options for flooring’

David Snazel, buyer at Carpetright says: ‘Updating your bathroom flooring doesn’t necessarily mean you’ll have to lay out a huge amount of money. If you like the look of stone or hardwood floors, but want a more practical and affordable option, it’s certainly worth considering vinyl. Functional yet stylish, vinyl is waterproof, remarkably durable and comes in a variety of styles – from natural wood and classic tiles to modern patterned designs – making it the ideal bathroom flooring solution.’
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‘Never cut corners when it comes to brassware’

Leanne Robey, senior designer at Ripples says: ‘There are lots of ways to save on a bathroom project, but you should always invest in quality brassware as this includes the items that are in use every day, in particular concealed valves that regulate the temperature of the water in your home.

‘Always buy a good quality showerhead, especially if you prefer to take a shower than a bath, and look for “rub clean” showerheads with easy-clean nozzles that will prevent the build-up of limescale – great if you live in a hard-water area.

‘For further savings choose an eco-friendly showerhead with a sophisticated flow restrictor, various jet options and air infusion, which all work together to cut your water consumption by up to 60 per cent. This will help keep down water costs and will also cut energy bills, as less water will need to be heated.’
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ABOVE (left-right): Urban Planks vinyl flooring in Eden Walnut 857, £44.99 per m², from the Tegola range at Carpetright; Crema Marfil marble wall tiles, (W)30x (L)60cm, £68 per m²; Fairfield easy-clean showerhead, (dia.)20cm, and arm, (L)41cm, £433; ¾-inch concealed flow control stop valve, £292; thermostat, £675, all Ripples.

All prices and stockists correct at time of publishing

Bathroom Renovation - Fresh Approach

Read article : Bathroom Renovation - Fresh Approach

The owners of this Melbourne home were in the fortunate position of having a very large ensuite bathroom attached to their bedroom.

"I was asked to carve off part of that space to create this adjoining second ensuite for the couple's son," says interior designer Peter Schaad of PS Design Studio. "I was lucky to have about 2.5x4m to work with."

The design solution

While on a trip to the UK, the owners fell in love with and purchased a traditional-style Perrin & Rowe shower mixer for their ensuite. "It made sense to let this tap inform my design for the new space," says Peter.

Complementary fixtures were sourced from The English Tapware Company and Calacatta Oro marble tiles selected for the floor of the new 2.5x4m ensuite. "I chose the tiles for their glossiness and ability to bounce light around, but also because nothing says 'quality' in a bathroom quite like marble does."

The same marble is used on the vanity top. "It was tricky to source, but the effort was definitely worth it." Peter designed the vanity with subtle moulding on the doors as a nod to the home's heritage character.

The elongated subway tiles chosen for the shower recess are the perfect complement to the marble floor tiles and the oblong vanity. Peter had a broad-framed mirror custom-made to suit the proportions of the room perfectly.

The ensuite is painted a crisp white (Dulux Lexicon) and the toilet tucked behind a door with vintage leadlighting and moulding, a reminder of the home's heritage.

The details

• Calacatta Oro marble vanity top, $2100, from Parthenon Marble.
• Custom 1600mm vanity, constructed by PMP Contracting, about $2680, designed by PS Design Studio.
• Perrin & Rowe shower set with 310mm rose and lever wall valves, $1385, basin taps, $895, oval undermount basin, $775, double towel rail, $419, bottle basket and soap tray, $469, and bath filler, $2520, all from The English Tapware Company.
• Bryant wall lights, about $394/each, from Cromwell.
• Italian 200x50mm subway tiles in White, $60/sqm, from Signorino Tile Gallery.
• Calacatta Grigio 610x305mm marble tiles, $325/sqm, from RMS Natural Stone & Ceramics.

How to use classic tapware

Traditional-style tapware is experiencing a resurgence in popularity, and for good reason, says Stephan Marshall, managing director of The English Tapware Company. "Homeowners today want a bathroom that's warm, nurturing and well detailed, and classic fixtures are a beauty to look at and a joy to use."

Here are Stephan's top tips for taps:

• The timelessness of traditional taps makes them equally at home in classic and contemporary bathrooms. "There's no need to adhere to one particular style; instead, seek inspiration from a variety of sources to create a highly individual scheme. Tapware and accessories are like jewellery for your bathroom."
• "Classic metal finishes are enjoying a revival, with nickel and bare brass newly appreciated for their ability to bring warmth and colour into a bathroom scheme."
• If you're buying traditional-style taps, buy the best quality that you can afford. "Check that they're true to the original design and precision-engineered."

Shower solutions for hotels – High-quality shower trays for all...

Read article : Shower solutions for hotels – High-quality shower trays for all...

Modern shower solutions are integral components of contemporary hotel bathrooms and feature in every bathroom. In private residential buildings, the aesthetics and spatial aspects of the shower area define its design. But in the commercial sector, technical factors such as the anti-slip class, sound insulation or accessibility have to be considered additionally.

Villeroy & Boch, as a partner for the property business, provides a large selection of high-quality shower trays made of acrylic, Quaryl® and ceramic, which are available in a wide selection of standard as well as customised sizes. The Infinity shower trays, awarded the iF DESIGN AWARD 2016, can be cut into individual customised sizes and special factors such as protrusions or corners can also be taken into account. Villeroy & Boch has classic shower trays in white and in other colours, which incorporate the latest trends in trays, as well as ceramic shower trays with selected tile designs.

Walk-in shower areas – flush-fitting, on tiles or a base

When sophisticated hotels are built nowadays, the shower areas are designed as spacious walk-in spa showers with flat, rimless shower trays. Guests are able to enjoy a spacious shower room, which can also be designed as an accessible room so that guests with disabilities or limited mobility can easily use them.

Experts use materials such as ceramic, Quaryl® or acrylic as they provide significant benefits compared to tiled floors. In wet areas with tiled floors, the joints can still become leaky even if the tiles were laid by a professional, resulting in extensive renovation in the shower area. Moisture can also cause damage to the walls and floors, which often leads to costly refurbishments. Walk-in shower trays are also ideal for a more hygienic environment. Thanks to the smooth, closed surface, dirt particles and bacteria cannot grip onto anything – in marked contrast to porous joints where germs and mould can build up, posing a health risk to hotel guests. Hoteliers, therefore, are confronted with comparatively high costs for thoroughly cleaning and taking care of shower areas with tiles and joints. However, walk-in showers only need water and a neutral cleaning agent to get them hygienically clean, and it takes a lot less time to do so, too. The results: fewer cleaning costs in total and, therefore, a lower environmental impact because significantly fewer non-aggressive cleaning agents are used. Another advantage of shower trays is the flexible installation. When a floor-level shower is neither desired nor possible, for example when it is being renovated, then there are functional and attractive shower solutions, which allow shower trays to be installed on the existing tiles or on a base in the shower area. To ensure builders, hoteliers and planners of hotel bathrooms have as many planning options for shower areas as possible, Villeroy & Boch's collections have high-quality shower trays with many different designs, e.g. Squaro Infinity made of Quaryl®, Subway Infinity made of ceramic and Architectura MetalRim made of acrylic.

Squaro Infinity

The Squaro Infinity shower trays made of Quaryl®, the patented material made of acrylic resin and quartz, have very exact edges for flush-fit installation thanks to the integrated ribbed technology and special casting process. The easy-to-clean, durable surface is warm underfoot and has the highest anti-slip class C. It has also been certified by the Fraunhofer Institute for Building Physics according to DIN 4109, the technical guidelines for sound insulation. This ensures that they are safe to use and noise is reduced, as is required in hotels.

The Squaro Infinity shower trays are available in nearly 50 standard sizes and can also be custom-cut with millimetre precision upon request. The shower trays can be cut to size on site with the proper tools and the instructions manual. A special installation system is used that has a steel beam and a frame that can be cut to fit all shower sizes.

To ensure it is integrated harmoniously into the existing interior, Squaro Infinity is available in the five solid matt colours of Edelweiss, Anthracite, Grey, Brown and Crème.

Subway Infinity

The Subway Infinite ceramic shower trays are also available in a wide variety of models. They come in 26 sizes, ranging from 80 x 75 cm to the XXL format of 160 x 100 cm, as well as in customised sizes and shapes. The flush outlet in the shower tray creates a clear and harmonious look. Subway Infinity is available in the three standard anti-slip colours in class B (PN18) - White Alpin, Ardoise and Taupe.

There are also Subway Infinity shower trays with Villeroy & Boch tile designs. By implementing ViPrint, an innovative, digital printing technology for ceramic shower trays, the patterns of selected floor tiles can be printed on 19 different sizes of trays. There are currently eight designs of successful tile series available, from a beige natural stone look through contemporary wood shades to a minimalist modern concrete effect in grey and anthracite. The shower bases are cut after glazing, printing and firing, ensuring the pattern extends all the way to the edges. Precise cutting allows flush integration in tiled floors, resulting in a consistent and seamless surface. The ViPrint versions are available in the anti-slip class A (PN12).

Architectura MetalRim

The Architectura MetalRim shower trays in the professional Architectura collection are the ideal choice for hotel bathrooms that require very robust floor-level showers. The four corners of the ultra-flat, rimless acrylic shower trays have been reinforced with galvanised steel, making them extremely stable and durable. They are cast from 4 mm solid-coloured sanitary acrylic that has been tested according to EN 249 and is extremely resilient, shock- and impact-proof and completely colour-fast. The easy-to-clean surface is UV-resistant and can be repaired easily even after it has been installed. The shower trays are, therefore, extremely sustainable. Villeroy & Boch gives ten years' warranty on these high-quality material properties.

Thanks to the special technology with steel-reinforced edging, Architectura MetalRim provides a high level of stability and has a load-bearing capacity of up to 1,000 kg. For more safety, customers can opt for a Vilbogrip anti-slip class C finish.

The design features a minimalistic, ultra-flat, rimless tray with a flush outlet cover. The white outlet cover is included in the delivery and is available upon request in Chrome Matt and chrome-plated. The outflow capacity of 51 litres of water per minute makes it highly efficient.

31 different designs are available, each with 15-mm or 48-mm rims and in two finishes, making 124 versions in total. Both 15-mm versions are wheelchair accessible; the 48-mm version is only wheelchair accessible when installed in the screed.

To see the photos, please visit:
http://pro.villeroy-boch.com/mdp/sk/64235044f4/DuschenHotelbad

Make a splash with a new bathroom

Read article : Make a splash with a new bathroom

Things are getting personal in the bathroom... Gabrielle Fagan reveals three key looks to make a style splash

THERE'S a new wave of styles washing over bathrooms. The tide's turning against the predictable, and embracing a more go-with-the-flow approach means you can mix-and-match furniture and fittings to conjure a space that perfectly suits your taste, as well as your practical needs, whether it's a spa-like haven, a functional family room, or a contemporary wet room.

As designers become more adventurous, sophistication, glamour and individuality rule. And it's easy to achieve a 'wow' factor, thanks to state-of-the-art technology - think TVs, sound systems and light and water shows in the shower - sculptural sanitary ware, and even stunning waterproof wallpaper now vying with tiles for attention.

"The traditional bathroom suite has become outdated and there's a desire for the space to become customised, with people seeing it as a room where they can display individual pieces, as they would art," says Leanne Martin, head of product at Sottini.

"A strong industrial trend is coming through, with steel-effect wall-hung cabinets complemented by sleek brassware and fresh white walls for an efficient, sleek look. Bathroom units raised off the floor, increasing visible floor space, to create an illusion of a larger room, are starring, and a particularly striking 'floating' effect can be achieved, with wall-hung, chunky, unsupported slabs in gloss or wood grain, and slim, curved vessel basins on top."

Soak up inspiration from these latest bathroom looks...

DRAMA ZONE

"If you don't want to reach out and touch the walls, you're not doing it right for 2017. Bathrooms no longer mean matching tiles as far as the eye can see - as a nation, we've become experimental with wall finishes and shrugged off the constraints of the white bathroom tile," says Martin.

"Industrial concrete walls are being paired with textured wallpapers, while tile effects are being created using countless different sizes, shapes, prints and texture options. Even a retro wood finish has made a comeback for a Scandi-chic style statement, and for the really bold, vertical green, living walls, to give a lush 3D impact you can't beat!"

Water, she points out, is a feature in itself. "It's not enough that it drains down a plughole any more. It's all about the spectacle of how it falls in a waterfall-like sheet from a height and disappears out of sight into concealed drainage."

LOOK OUT FOR: Mirrors with sensor controlled lighting and de-misting, as well as inbuilt functions linked to music systems, TVs and phones.

TAP INTO STYLE: Wall&Deco's waterproof 'wall papers' include a gorgeous 'Inner Forest' and 'Converatory' (Pictured above) - which looks like a lush tropical landscape - design, from £156 per square metre, West One Bathrooms (www.westonebathrooms.com). Alternatively, make an impact with a monochrome Diver Wall Mural, from £10.63, Purlfrost (www.purlfrost.com).

Sottini's range has bang-on-trend pieces, including a free-standing Ombrone Totem Washbasin, £1,190.25 (pictured below); a Bonamico 70cm Square Vessel Washbasin, £341.55, or a bowl-shape Pioto Vessel Washbasin, £160.43. Achieve that 'floating' effect with a sleek Ippari Console, £546.48. (www.sottini.co.uk).

If you really want to splash the cash for celebrity style, Touched Interiors is the destination to visit: Brass And Gold Plated Black High Gloss Bubbles Bathtub, £29,310, and a Polished Brass And Mirrored Free-standing Washbasin, £14,770 (www.touchedinteriors.co.uk).

For period style, look no further than Heritage Bathrooms, which has a Madeira Cast Iron Double Ended Bath, from £3,750, and an Abingdon Basin & Washstand in Rose Gold, from £495 (www.heritagebathrooms.com).

SERENE SANCTUARY

"The bathroom isn't purely about functionality, or a clinical environment any more. It's a sanctuary that needs as much design consideration as a living room," says Daniel Cook, principal development designer at C.P. Hart.

"It's all about subtle elegance and a beautiful harmony of shades with less 'pops' of colour. Muted consistent tones, such as taupes and greys for furniture and sanitary ware, are increasingly popular colour choices. There's a move beyond white and glazed surfaces and a significant increase in pastel shades of pinks and blues."

LOOK OUT FOR: A refined industrial trend with brushed finish brassware, matt finishes for ceramics, as well as silk/satin glass finishes.

TAP INTO STYLE: Key into colour with Italian-designed items from the Cielo Ceramica I Catini range: Blue Washbasin (pictured below), from £1,580, C.P.Hart (www.cphart.co.uk).

Laufen's slim units in gold would impress: Gold Kartell All Saints Mirror, £504.62 and Rifly Pendant Lamp, £335.27; Boutique Dark Oak Vanity Unit, £1,522.50.

MAKE A SPLASH

"From cars to holidays, and clothing to furniture, customisation is one of the fastest growing consumer trends," says Jayne Barnes, managing director, AQATA.

"The discerning bathroom buyer now wants not only a highly engineered luxury shower enclosure or screen, handmade to fit their space, but also a completely individual customised design to bring their own character and personality into the bathroom. Home trends are being reflected in bathrooms with diverse colours, patterns and textures making their mark.

"Today's shower should incorporate these essential features: easy access (walk-in wet rooms are perfect for this), spacious enclosures and a steam function, as well as power showers and body jets to cater for comfort and wellbeing, and distinctive personal touches."

LOOK OUT FOR: Larger showers as they're being given more space in either a bathroom or bedroom, plus frameless enclosures featuring coloured or tinted glass.

TAP INTO STYLE: AQATA's frameless Spectra Enclosure SP448, from £1,561 (pictured below), and Linneal Shower LNP241, £1,300 (for stockists, visit www.aqata.co.uk). Alternatively, Merlyn Showering has a Twin Panelled Double Shower Enclosure, from £345 per panel (www.merlynshowering.com).

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)