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Showing posts sorted by relevance for query key building material. Sort by date Show all posts

Sunday, February 11, 2018

Architects' tour showcases cutting-edge designs | News

Read article : Architects' tour showcases cutting-edge designs | News

High ceilings, walls of glass, most rooms facing greenery. This is not the home John Shea's father built in 1940 in Old Palo Alto.

But it's the new home on the same spot Shea grew up that will be featured on the American Institute of Architects, Santa Clara Valley's third annual, self-guided Silicon Valley Home Tours on June 3, which will include four other homes on the Midpeninsula.

When Shea inherited his family home in 2006, he and his wife, Carolyn, thought they'd be able to remodel the 1,400-square-foot bungalow to allow them to age in place in his childhood neighborhood. But, John said, "It was obvious that the expense of bringing it up to code would be about equal to starting over."

At first they thought they'd build something that matched the traditional architecture on the street. But, "I had always admired the Eichler open floor plans and wanted one like that," Carolyn said.

After interviewing a number of architects, the couple chose Burlingame-based architect Gary Diebel "because he listened to what we said," Carolyn said. When Diebel asked the Sheas to bring in photos of what they liked, he pointed out that they were all modern.

Diebel designed a single-story home on the 10,000-square-foot lot, with a permeable paver driveway running the length and curving into a three-car garage at the very rear. Dense plantings soften the the front yard, blending the low home with the rest of the block.

Glass is a key building material throughout the house, from the sliding pocket doors separating the public spaces from the bedrooms to the clerestory windows in almost every room.

At the very front of the house, facing the street, is the office. One wall and the opposite corner are clad in aluminum, blending with the window valance. A bathroom, with a 14-foot ceiling, those clerestory windows, honed Calacatta Gold marble on the floor and tub/shower walls and a blue glass bowl sink, sits between the office and the guest bedroom.

The hallway is lined with John Shea's photographs. Here the windows are at floor level, to prevent fading of the artwork.

In the living room, below the very high clerestory windows, sits a circular light shelf. "We wanted to balance how the light comes in," Diebel said.

Another architectural challenge was the desire by the Sheas to keep their furniture, including a tall china cabinet. "We told Gary to build the house around it," John said. (He even managed to incorporate a stained-glass window that they had made for a San Francisco condominium.)

A large piece of art hangs from a flat bar over the fireplace; roll it to the side and it reveals the flat-screen TV.

Radiant heating was used throughout the house, and no air conditioning is required, since there is adequate cross-ventilation from the many windows. Most of the flooring is wide-planked walnut.

Two wide openings lead to the kitchen, which features "rain" glass windows over the sink and stovetop, offering privacy from their nearby neighbor. It took two-and-a-half slabs of blue granite to create the long countertops, which complement the darker porcelain tile flooring and stainless-steel appliances.

"There's enough light so we can have dark flooring," Diebel added.

On the other side of the public spaces is the laundry room and master-bedroom suite, which has a high-enough ceiling to accommodate the couple's antique hanging lamps. "They go with us where we go," Carolyn said.

The master bathroom features a sink in each vanity, with granite counters and honed porcelain tile floors. With a nod to aging in place, there's no curb to the shower, and the bottom is a non-slick rock pattern.

Sliding glass doors lead outside. A key piece of landscaping is a 60-foot-plus redwood that John recalls his dad planting from a seedling purchased from the Boy Scouts more than 50 years ago.

Other homes, which range from 2,200 to 10,000 square feet, on the tour include:

• A re-interpretation of a "farmhouse style" home in Palo Alto (Fergus Garber Young Architects, Palo Alto).

• A midcentury-influenced townhome with a skylit, steel staircase in Menlo Park (John Lum Architecture, San Francisco).

• A double-gabled Eichler remodel in Mountain View (Klopf Architecture, San Francisco).

• A structure that interlocks with the land in Portola Valley (Square Three Design Studios, Palo Alto).

The focus of the self-guided tour is to walk through the homes, see the materials up close and to meet the architects, who will be on hand at all five homes.

Freelance writer Carol Blitzer can be emailed at carolgblitzer@gmail.com.

What: AIA Silicon Valley Home Tours

When: Saturday, June 3, 10 a.m. to 4 p.m.

Where: Five homes in Palo Alto, Menlo Park, Mountain View and Portola Valley

Cost: $75 general admission; AIA members $59 before June 1 (Purchase tickets here)

Info: 408-298-0611; hometour@aiascv.org; [ http://aiascv.org/page/2017Homes aiascv.org

Sunday, November 19, 2017

Greenbuild exhibitors get down to business

Read article : Greenbuild exhibitors get down to business

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TORONTO — The exhibits at the annual Greenbuild Show continue to become increasingly practical and pragmatic, much like the university competition that is the Solar Decathlon in Washington that wrapped up earlier in October. There was little to see that was far outside of the mainstream.

The U.S. Green Building Council's annual Greenbuild International Conference & Expo featured four days of networking, educational sessions, green building tours, master speakers and plenary events. The 140,208 gross square meters (1.5 million-sq.ft.) of the North and South building expo floors of the Metro Toronto Convention Centre were fully sold out and comprised of 1,700 booths.

Related Articles:
Greenbuild 2010 showcases innovative solutions

The 23,000 attendees must have been in the educational sessions because they weren’t on the show floor, making it easy for CONTRACTOR to speak with any of the exhibitors at any time. Kohler stood out with a 40-ft. x 40-ft. booth that was made of recycled barn wood. Kohler has converted all faucets from its residential lines to meet new low-lead guidelines.

Additionally, the company unveiled two advanced commercial faucets at Greenbuild that now comply with the lead regulations, the Gooseneck and the Streamlined Touchless faucets. In addition to their low lead content, the faucets boast a touchless design that uses Kohler’s proprietary Insight adaptive infrared sensor technology and runs off the industry’s first ever 30-year Hybrid Energy System. The firm also showed off its enameled cast iron products that are made from at least 80% recycled material.

Reduce, reuse and recycle was the theme for Charlotte Pipe & Foundry. The company pointed out that its cast iron pipe is made from 100% recycled material from everything from refrigerators to car engines. Charlotte’s RePVC plastic pipe has recycled material in the center with virgin material in the inner and outer skins. It is the first NSF-listed Schedule 40 pipe made with recycled materials. The company’s ReUze purple CPVC pipe is made for rainwater and graywater systems and is labeled, “Warning: Non-potable water do not drink.” ReUse meets all the same requirements as FlowGuard Gold CTS CPVC domestic water piping.

Sloan Valve showed off its Solis line of PV-power flushometers and hand-washing faucets. The company displayed a brand-new faucet line, Basys, which includes automatic shutoff, visible diagnostics, interchangeable parts, multiple power options, automatic line purge and three flow options. The crown of the Basys faucet is easily removed for access to all the internal parts. Sloan also showed off its Greenbuild-appropriate Aqus graywater system that collects water under the lav, cleans it, stores it and then uses it to flush the adjacent toilet. Aqus works with most toilets, even dual flush, and it is UPC-listed.

American Standard displayed its new Decorum FloWise high-efficiency urinal designed for luxury buildings, clubs and resorts. Decorum uses 0.5-gpf, half the amount of a standard urinal, meeting the U.S. Environmental Protection Agency’s WaterSense program requirements. Moreover, commercial specifiers can now select thirty-four pairings of commercial urinals, toilets and flush valves to make commercial specifying more efficient. In addition to streamlining the specifying function, this consolidated process helps expedite delivery and paperwork for large volume commercial projects. The company also showed its Studio dual flush toilets. These luxury performance (dubbed LXP) toilets offer users the choice between a standard 1.6-gpf for solids or 1.1-gpf for liquids, meeting WaterSense criteria for using 20% less water than standard models.

The green emphasis at Delta Faucet was that all of its residential lavatory faucets flow at 1.5-GPM at 60-PSI. A majority of Delta products are also WaterSense labeled. The WaterSense label provides consumers with assurance that bathroom faucets, such as Leland, Lahara, Addison, Dryden, and Victorian, are approximately 30% more water-efficient than their 2.2-GPM counterparts. In the commercial sector, all Delta brand lavatories have a 1.5-GPM outlet as standard, with the option of 0.5-GPM for further savings. In addition to contributing LEED credits, Delta Faucet Co. also provides electronic and manual commercial metering products for reassurance that the faucet won’t be left running.

Moen recently introduced new eco-performance retail kitchen faucets that allow users the option to switch between three water-flow settings. For everyday tasks that require constant, yet low water flow, such as washing dishes or preparing foods, homeowners can choose eco-performance standard stream or aerated spray modes. These settings provide a reduced flow rate of 1.75-GPM. For tasks that require a set amount of water, however, such as filling a pot or pitcher, they can switch to the fast-fill mode, which flows at 2.2-GPM. Moen’s Commercial Division has created Eco-Performance shower systems that are certified to meet WaterSense criteria, with flow rates as low as 1.5-GPM. Commercial shower systems combine Moen’s Eco-Performance showerheads with the Posi-Temp valve to reduce water consumption and eliminate shower shock.

ClimateMaster introduced the Tranquility Modular Water-to-Water (TMW) Series in 360 (30-ton) and 600 (50-ton) sizes. This water-to-water series offers high efficiency with advanced features and application flexibility at competitive prices. As ClimateMaster’s most adaptable EarthPure HFC410A refrigerant units, the TMW series can be used for radiant floor heating, snow/ice melt, chilled water for fan coils, hot/chilled water for make-up air, and many other types of HVAC applications. The TMW 360-600 has advanced digital controls for BAS interface, four LEDS for unit status and compressor isolation switches. Other features include front and back service access panels that allow for side-by-side installation; larger capacity, requiring fewer units per job site; staggered top water connections for ease of manifolding multiple units; and DDC controls with 11 safety protections for the refrigeration circuits.

Aquatherm displayed its Greenpipe recyclable polypropylene-random (PP-R) piping system designed for potable water applications. The pipe is joined by heat fusion. The PP-R material used in Aquatherm pipe is an abundant byproduct of petroleum processing. It also requires far less energy for initial production than other piping materials, and involves none of the environmental effects associated with mining operations.

Additionally, the pipe has a natural R-value of 1-1.5 depending on pipe size and SDR. Aquatherm Lilac, developed for graywater applications such as toilet/drain water, rainwater collection, laundry/cleaning, irrigation, and similar uses, is comparatively low priced and has a list of steadily growing code approvals (it currently meets ASTM F2389 and CSA B137.11).

McQuay International previewed the new Daikin McQuay SmartSource Water Source Heat Pump (WSHP) product line during Greenbuild. The line includes the industry’s first variable-speed inverter WSHP. The new line of water source heat pumps comes in a range of sizes and options that include smart dehumidification, waterside economizers and internal electric heat. The SmartSource platform is geothermal ready with factory-mounted loop water pumps. McQuay also introduced the Daikin McQuay Rebel rooftop unit. The new unit claims energy efficiency at almost double the ASHRAE 90.1 minimum standard, while functioning as a Variable Air Volume heat pump unit down to three tons. In addition, the Daikin McQuay Rebel is the first packaged rooftop system to use variable heat pump technology with auxiliary gas heat, as well as, Daikin’s advanced variable inverter scroll compressor.

Taking the spotlight in Niagara’s Greenbuild booth this year was the Stealth Ultra-High-Efficiency Toilet, featuring 0.8-gpf technology. The Stealth was set-up for live demonstrations for Greenbuild attendees. For the shower, Niagara displayed the high-efficiency Sava Spa Showerhead and the Tri-Max Showerhead with three flow rate options. With a new line of faucet aerators, the Niagara booth showcased both kitchen and bathroom faucet aerators, including its new Versa Kitchen Aerator, Tri-Max Aerator, Lead-Free Aerator and Bathroom Sink Aerator. Niagara also introduced the Energy Saving Smart Surge Protector and the Eco-IQ Programmable 5-2 Thermostat.

Jaga, a European manufacturer of stylish panel radiators and unique fan-powered hydronic baseboard, announced that it has filled out its U.S. representation and it is available across the U.S. Jaga’s product lines include the Energy Savers low-H20 radiators and the Eye Catchers line of visually appealing heating solutions. Because of its heat exchanger technology, Jaga’s “Energy Savers” radiators require only 10% the water of traditional panel radiators, resulting in a 12% energy savings. This lowers energy bills and reduces annual CO2 emissions per dwelling by almost a ton. Jaga’s Eye Catchers heating solutions use innovative materials and production techniques to elevate the radiator from a design object to art.

Encore, a division of Component Hardware Group Inc., has introduced a hygienic, water-conscious solution for converting a standard faucet into a low-flow metering faucet. The One-Tap Metering Aerator fits most faucets with an existing aerator, enabling a speedy, hassle-free transition to a water-conserving faucet. The One-Tap Metering Aerator offers a cost-effective alternative to electronic faucets. Water flow starts with a single touch and the adjustable metering activator automatically stops the flow in two to 20 seconds. This action reduces the risk of cross-contamination and provides up to 87% water savings over conventional faucets. The One-Tap Metering Aerator comes with a tamper-proof housing, installation/adjustment key and 15/16-27 female by 55/64-27 female thread adapter to fit most standard faucets with aerators.

Monday, March 20, 2017

Tricks for adding THOUSANDS to the value of your home

Read article : Tricks for adding THOUSANDS to the value of your home

When it comes to renovating your house, there are a number of simple tricks you can implement to ensure a profit when the time comes to sell.

Justine Wilson, the Director & Principal Stylist of Australian company Vault Interiors, has spent years perfecting the art of interior design, property styling and photography styling to help people boost the value and appearance of their homes.

Here, she shares her tip tips for renovating for profit and some of the biggest mistakes homeowners make before selling. 

Justine Wilson, the Director & Principal Stylist of <a href=Australian company Vault Interiors, has spent years perfecting the art of interior design, property styling and photography styling" class="blkBorder img-share" />

Justine Wilson, the Director & Principal Stylist of Australian company Vault Interiors, has spent years perfecting the art of interior design, property styling and photography styling

THE BATHROOM 

According to Justine, a bathroom renovation will set you back between $15,000 and $20,000 on average depending on the size of the bathroom and quality of finishes.  

'If you go the whole hog, think about using large-scale tiles, freestanding bathtubs and waterfall showerheads for a designer look,' she said. 

'A grey colour palette paired with natural stone is on trend. If you have a lower budget, think about swapping out the old vanity/shaving cabinet for new, and changing the tap ware for a quick update. 

'Spraying old bathroom tiles white is also an affordable way to spruce up your space. These quick tricks will set you back closer to the $3,000 mark.'

According to Justine, a bathroom renovation will set you back between $15,000 and $20,000 on average depending on the size of the bathroom and quality of finishes

According to Justine, a bathroom renovation will set you back between $15,000 and $20,000 on average depending on the size of the bathroom and quality of finishes

'A <a href=grey colour palette paired with natural stone is on trend. If you have a lower budget, think about swapping out the old vanity/shaving cabinet for new, and changing the tap ware for a quick update,' she said " class="blkBorder img-share" />

'A grey colour palette paired with natural stone is on trend. If you have a lower budget, think about swapping out the old vanity/shaving cabinet for new, and changing the tap ware for a quick update,' she said 

THE LIVING/DINING ROOM

The key to adding value to this space, Justine explains, is to connect the zones. 

'People gravitate towards open plan living and combing the two areas by removing walls can really add to the feeling of light, function space,' she said.

'Costing will depend on the structure of the existing property, if you require a support beam this can set you back anywhere from $30,000 - $50,000 depending on the scale of your renovation and how much you adapt the current floor plan

Justine said that for 'a quick makeover' homeowners should consider painting all the current walls white and installing floating timber floors

'This will be less costly than a full renovation, but will give any home a modern feel. Changing feature pendants lights is also a quick win. Bunnings or Beacon Lighting offers great affordable ranges,' she said. 

The key to adding value to this space, Justine explains, is to connect the zones

The key to adding value to this space, Justine explains, is to connect the zones

'People gravitate towards open plan living and combing the two areas by removing walls can really add to the feeling of light, function space,' she said

'People gravitate towards open plan living and combing the two areas by removing walls can really add to the feeling of light, function space,' she said

What are the biggest mistakes homeowners make before selling? 

The biggest mistake to make when renovating for sale is to over capitalise and spend too much, especially on details that are taste specific.

Keep things simple, choose a neutral base colour scheme and apply it throughout the whole property.

This extends to the wall paint, carpet, kitchen and bathroom finishes, that way the house will feel tailored and considered. 

Beige or grey tones are the most on trend schemes. If your budget is tight focus mainly on the facade and as a minimum I always suggest fresh paint and fresh carpet as well.

THE STUDY 

According to Justine, studies can add value to a property as so many people now work from home. 

The key to adding value here is to 'add ample storage and function' through things like inbuilt bookshelves and a floating desk system

'Make sure that there are ample power and data points and task lighting is also important,' Justine said.

'Nice joinery will set you back anywhere from $2,000 - $10,000 depending on the material (laminate or polyurethane or solid wood). 

'Think about extending your kitchen or wardrobe joinery to create a "study nook" either off the kitchen or in a bedroom. 

'Any dead space can be turned into functional space with the right design.'

The key to adding value here is to 'add ample storage and function' through things like inbuilt bookshelves and a <a href=floating desk system" class="blkBorder img-share" />

The key to adding value here is to 'add ample storage and function' through things like inbuilt bookshelves and a floating desk system

THE KITCHEN 

According to Justine, 'kitchens sell houses', so kitchen renovations are quite important when it comes to adding value. 

'If renovating for profit, opt for mid range appliances and stone counters as the majority of people will be looking for both,' Justine said. 

'Cupboards can be laminate if on a budget or custom polyurethane for a more designer edge. Most buyers prefer neutral tones in kitchen design so think white/ greys and avoid bold colours as it can be too taste specific. 

'A quality mid range kitchen will usually cost around $20,000. If at all possible try to incorporate a kitchen island (which may mean removing walls) it will be money well spent and will create the open plan scenario buyers like.'

According to Justine, '<a href=kitchens sell houses', so kitchen renovations are quite important when it comes to adding value" class="blkBorder img-share" />

According to Justine, 'kitchens sell houses', so kitchen renovations are quite important when it comes to adding value

'If renovating for profit, opt for <a href=mid range appliances and stone counters as the majority of people will be looking for both,' Justine said" class="blkBorder img-share" />

'If renovating for profit, opt for mid range appliances and stone counters as the majority of people will be looking for both,' Justine said

'A <a href=quality mid range kitchen will usually cost around $20,000. If at all possible try to incorporate a kitchen island (which may mean removing walls) it will be money well spent,' she said" class="blkBorder img-share" />

'A quality mid range kitchen will usually cost around $20,000. If at all possible try to incorporate a kitchen island (which may mean removing walls) it will be money well spent,' she said

THE GARDEN/OUTDOOR AREA

Justine said homeowners should aim for a garden or outdoor area to reflect the popular 'alfresco lifestyle'.

'If there is potential to add a paved or decked area that allows for an outdoor lounge or dining setting this will add value as it creates usable space,' she said. 

'A deck will cost anywhere from $5,000 upwards depending on size but a paved area will be a cheaper option usually around a few thousand. 

'When building these areas considering adding nice lighting and some form of cover (either fixed or retractable) to make the area all weather friendly. 

'Putting in a few low maintenance feature plants such as yuccas will look nice and fill up empty garden beds with wood chip to make it look presentable.'

'If there is potential to add a paved or decked area that allows for an outdoor lounge or dining setting this will add value as it creates usable space,' she said

'If there is potential to add a paved or decked area that allows for an outdoor lounge or dining setting this will add value as it creates usable space,' she said

THE FAÇADE 

Street appeal, Justine says, is one of the most important things to focus on during a renovation as it is the first impression people have of your home. 

'Consider painting the facade prior to sale - Colourbond has some great exterior colours,' she said. 

'Fix any issues such as damaged fencing, guttering or broken outdoor lights

'Having a definite path to the front door is key and often overlooked. If you don’t have a path, create one with stepping-stones or hedges and woodchip.

'It may cost anywhere from a few thousand to $5,000 to get the front of your property right - but it is money well spent.'

'Having a definite path to the front door is key and often overlooked. If you don’t have a path, create one with stepping-stones or hedges and woodchip,' Justine said

'Having a definite path to the front door is key and often overlooked. If you don’t have a path, create one with stepping-stones or hedges and woodchip,' Justine said

Thursday, October 19, 2017

What’s in a name? What's behind the names of UK agencies' meeting rooms

Read article : What’s in a name? What's behind the names of UK agencies' meeting rooms

Agency offices often display their culture and creativity throughout their offices, from murals on their walls to bathroom reading material to what they call their meeting rooms. Here are the stories behind some U.K. agencies’ meeting room names.

Agency: Essence
Names: Oolong, Darjeeling, Lady Grey, Lapsang Souchong

Essence’s global offices name their meeting rooms to reflect the local food and drink scene: The Seattle office’s rooms have names like Umbria and Zoka, after local coffee roasters; Singapore’s are called local drinks Tiger Beer and Singapore Sling; San Francisco’s are named for local craft beers such as Pliny the Elder and the Denogginizer. Since the U.K. is a nation of tea drinkers, Essence London went with a tea theme. “It’s a pretty good representation of how Essentials spend time together outside of office hours in each location,” said Michael Butler, Essence’s business development manager.

Agency: Manning Gottlieb OMD
Names: Chess, blue label, locomotive, Titanic, apple, ghost

Manning Gottlieb OMD’s workforce is divided into four “tribes,” named after inventors in media: Turing, Marconi, Lumière and Caxton, and each of the meeting-room names is a reference to the inventors. For instance, the first moving images projected by the Lumière brothers were of an approaching locomotive, while Alan Turing used chess to demonstrate what a computer could do.

Agency: We Are Social
Names: Winter Conference, Meme room, Lady and Man Chat, Running, Cycling

Skype, We Are Social’s first client, is the agency’s main internal channel of communication. As an homage, the meeting rooms are named after key Skype chats. There’s a Skype group for cycling fanatics, a Skype chat for running fans and a Skype chat for food recommendations. The agency also has a room called Meme, displaying framed pictures of Grumpy Cat and Baby Fist, and a Winter Conference room named for its annual ski trip, ahem, winter conference.

Agency: GroupM
Names: King George, Queen Victoria, Kensington Palace

The agency took a survey to decide what to call the meeting rooms when it moved into new office, and the most popular option was kings and queens. There are rooms named after kings on one floor, queens on another and palaces on a third.

Agency: FCB Inferno
Names: Boudica, Sheba, Latifah, Liberace, Priscilla, Oscar

FCB Inferno’s meeting rooms are named after queens, both literal (Victoria and Cleopatra) and figurative (Liberace and Priscilla). “It helps make for a positive meeting,” said founding partner Tim Doust.

Agency: Mediacom
Names: Rosa (Parks), Florence (Nightingale), Albert (Einstein), Pablo (Picasso), Leonardo (Da Vinci)

Mediacom has named its meeting rooms after accomplished and inspiring people from throughout history, such as Da Vinci. “His art and inventions all adhere to his quote, ‘Simplicity is the ultimate sophistication,’ where they were founded on simple principles but were still groundbreaking,” explained art director Sam Learmonth. “In the same way at Mediacom, we know that the best work is a combination of simple truths, cutting-edge technology and creative innovation.”

Agency: Dentsu Aegis
Names: Dame Stephanie Stevie Shirley, Sophie Wilson, Admiral Grace Hopper

The Dentsu Aegis meeting rooms are named after media pioneers such as Johannes Gutenberg, who invented the printing press, and Tim Berners-Lee, the inventor of the World Wide Web. They also all used to be named after men, but they now include female pioneers in the media and tech space, like Hedy Lamarr, who invented a form of wireless communication, and Ada Lovelace, a pioneer in computer programming.

Agency: M&C Saatchi Mobile
Names: Archer, Oxford, Lexington

M&C Saatchi Mobile named its meeting rooms after street names in its Soho area of London to give the office a homey vibe. “Soho is the ultimate media and advertising area, and [it’s] a real draw for our employees,” said Libby Robinson, EMEA managing director, M&C Saatchi Mobile, adding that the names make the staff “feel like they are in the thick of the media industry.”

Agency: Rufus Leonard
Names: Zeppelin Bunker, The Armoury, The Rifle Range

The meeting-room names come from the agency’s main building, The Drill Hall, which is a former military installation. While The Shooting Gallery might be a mouthful for a room name, it’s a conversation starter for clients, said Charlotte Anderson, business development director. “The building is steeped in military history,” she said. “We wanted to honor its heritage.”

Agency: Livity
Names: Brighton, Brixton, Cape Town, Rio

Livity’s rooms are named after key locations: the agency launched in 2001 to tackle the biggest youth issues, like teenage pregnancy, gang crime and unemployment. Brixton, south London, where it launched, which was close to the worst-performing area on all positive youth outcomes at the time. The co-founders came up with the idea for the business in Brighton, and Cape Town was the company’s first office in Africa.

Main image courtesy of Mediacom

Monday, August 21, 2017

Emerging Hotel Bathroom Trends | Hotel Industry Magazine

Read article : Emerging Hotel Bathroom Trends | Hotel Industry Magazine

Hotel bathrooms have come a long way from being purely functional and have arguably become one of the most marketable parts of the hospitality experience. As a result they are often used to sell the hotel to potential customers. But are your bathrooms on trend? We ask C.P. Hart’s Ian Dutch to explore the emerging hotel bathroom trends.

Finishes and Forms

A strong trend we are seeing is the desire to mix and blend different materials and finishes. Designers and specifiers are experimenting with developments in materials and new combinations of finishes and surfaces, resulting in a more tactile and luxurious bathroom experience. Grey continues to be the dominant key colour trend and applied to bathroom furniture in particular, varying from the very light to the very dark with added elements of blue and green hues. This dominating palette is being mixed with the growing trend for natural materials and textured finishes over high gloss finishes.

Bathroom furniture units are being treated as design pieces in their own right, showcasing the beauty of wood or drawing upon contemporary new materials. Tactile textures are increasingly playing a more important role when it comes to planning high specification hotel bathrooms, with designers and specifiers thinking more about the way a bathroom feels as well as how it looks. Textured furniture pieces are also being stripped back to their wood form; a natural aesthetic has emerged as manufacturers celebrate the natural beauty of wood through distinctive grain finishes.

In addition to texture we are seeing experimentation in terms of sculptural shapes and forms, especially when it comes to brassware and washbowls, as small no longer means insignificant. Statement basins such as hand-blown lead crystal basins fuse Italian artisan craftsmanship with beautiful contemporary design. When it comes to brassware we are seeing graceful statement pieces that show an instinctive appreciation of the beauty of flowing water. Brassware in a gold or nickel material are being specified more at the top end of the market, while feature walls using gold leaf or metallic materials deliver a truly luxurious finish. Marble is being used as a form of wall art, applied alongside clean white sanitaryware and neutral walls.

Experience

The configuration of a hotel bathroom space is being reworked and re-examined, with bathroom and bedroom areas merging to create a hybrid space. At the heart of this is an emphasis on pampering which has become synonymous with hotel bathrooms. Contemporary baths are now deeper and more comfortable. The versatility of the latest composite materials allows more fluidity in shape and structure. Shower enclosures are becoming streamlined, but shower heads are now much larger in scale and replicate the cascading effects created by a waterfall or rainfall. Spa elements are becoming more practical to install, allowing guests to enjoy the luxury of steam in their room as part of an integrated shower enclosure (eliminating the need for additional space). It all comes down to personal comfort and relaxation, but translated in a way that works with the room layout.

The all-important vanity unit typically forms the centrepiece of the hotel bathroom, blending decorative and functional furniture elements to avoid a clinical finish and ensure the room becomes a living and breathing space in its own right. Large decadent vanity units that function as a dressing area for beauty treatments are also a key ingredient as they’ve become increasingly decorative in style and work as an extension of the hotel bedroom. Vanity units are being accentuated with strategic eye level lighting to enhance the experience and create a flattering effect. Mirrored cabinetry around the dressing area is multifunctional, offering 360° visual views through intelligent mirror placement, built-in shaver sockets and strategic internal shelving and storage for complete guest usability.

Technology

Technology is an ever-growing trend; from multifunctional brassware to all-singing, all-dancing showers, the bathroom is beginning to meet the needs of our technology driven culture, creating a more liveable space that strikes the right balance between design and experience. Digital showers emerged onto the market with button controls, but are now starting to feature simple touch screen controls that control the lighting, scents, varying water temperatures and pressures. And whilst digital showers are leading the way the rest of the bathroom is quickly catching up. Brassware is moving into a more digital realm, with manufacturers starting to incorporate technology in the form of a digital screen interface that controls flow and temperature. Baths will be able to be filled using a smart phone or tablet, and home spa elements are becoming more accessible and fit for purpose in the modern hotel as steam starts to be integrated into the shower enclosure.

Accessible Design

Where specialist accessible design guidance is required, C.P. Hart believes that an impressive bathroom should have universal appeal. Each and every functional component of the bathroom has to be considered to ensure practicality and durability is achieved throughout the entire bathroom. C.P. Hart’s coordinated Accessible Design range by Hewi is testament to our belief that DDA compliance need not mean unappealing and utilitarian design. Sleek and minimalist in style, the collection has been designed to aid mobility around the bathroom, providing support through subtle recesses and support rails which perfectly complement the range’s minimalist aesthetic. Support rails are sculpted to ensure they are understated yet practical, featuring easy to grip contours for those requiring support when standing up or sitting down to use the WC, shower or washbasin. The rails are available in either a rounded or square profile, in addition to a variety of length options. The shower seat is geometric in its design and available in clean white or architectural anthracite that complement the minimalist finish. Manufactured from high quality materials, the seat has been designed to be both comfortable and slip resistant due to its lightly structured surface.

C.P. Hart Contracts works exclusively on building and refurbishment projects, from luxury apartments through to hotels and commercial developments. For more information visit www.cphart.co.uk/pro or call 0845 873 1121.

DISCUSS

Friday, March 17, 2017

If I want to become a Navy Seal what are the steps I need to take to achieve this goal?

Read article : If I want to become a Navy Seal what are the steps I need to take to achieve this goal?

Col John Boyd (USAF-ret) used to ask his guys “do you want to be somebody or do you want to do something?”

By which he means, everyone wants to look cool. They want the title. They want the cool hat or badge. But they don’t necessarily want to do that work or put in that effort.

Everyone would love to be a firefighter. Not everyone wants to run into a burning building.

What makes an operative "special"?

James D. Kiras approaches the question of ‘special operations’ with his definition, “Special operations can inflict disproportionate moral damage, in conjunction with strikes against material resources, by virtue of their ability to accomplish what was previously thought impossible.”

Unfortunately, Kiras’s definition is too generic and leaves open the possibility that air power in many forms represents a “special operations”capability. (Very few people would begrudge the Air Force, in general, the title of "special operations.") It also tends to focus on the relatively narrow “direct action” aspect of special operations vice some of the other significant roles undertaken by SOF.

The most complete definition of “special operations forces” is provided by Dr. Robert G. Spulak who first identifies the three most common frictions of war (intense mental and physical stress, the inability to predict what is going to happen, and the inability to know what is out there) and then provides three attributes required by special operations personnel to overcome those frictions.

Spulak suggests that SOF need to be "elite warriors" who are "flexible" and "creative."

The first means they have the physical and mental endurance to survive the stressors of combat and long term deployment behind enemy lines without support. SOF personnel are in incredible physical shape. They approach every work out with the intent of making themselves better, not just maintaining what they have. They are constantly pushing the limits and they are always in competition. Mentally, they exhibit discipline. The ability to deny themselves simple pleasures or to push on through pain, exhaustion, and even demoralization.

Being flexible requires a wide repertoire of skills which can be adapted to a given situation (demolitions, skydiving, SCUBA diving, languages, etc.) By extension, this implies the ability to learn new skills quickly. How to break down a subject into its component parts, how to study, how to practice effectively. Which skills are not as important as a variety of skills and the ability to pick-up new skills quickly.

With regards to practice, SOF personnel subscribe to the philosophy:

“Amateurs practice until they get it right. Professionals practice until they can’t get it wrong.”

Creativity relates to the operator’s ability to conduct unique missions with no previously established doctrine or tactics, techniques, and procedures (TTPs) and to develop the necessary solutions to the problem at hand. In other words, there is not an "approved solution" to a given tactical situation. (For example, when conducting an assault there is specific doctrine, a requirement for at least a 3:1 force ratio, and TTPs for how to apply covering fires, etc, etc.) Special operators understand how to break a problem down. Look at the root causes, pick apart the vulnerabilities and then to focus their efforts on those solutions with the highest “return on investment.” So critical thinking skills, lateral thinking, and problem solving are essential.

Develop those three attributes and everything else is details.

With that in mind, I would suggest the following with regards to how to prepare…

Discipline. Develop discipline both physically and mentally. If you can do that, you can overcome any of the challenges that are thrown at you.

Every special operator I have ever met has had two stories: 1) about the guy who was in better shape than anybody else in selection and washed out and 2) the guy nobody thought would make it because he was slight, goofy looking, a city kid, whatever but he had the intestinal fortitude to push through all trials.

What's the difference between them? Discipline. One was physically powerful but when everything went to hell, he was unable force himself to go on. He didn't want it bad enough and chances are he had never had to force himself to dig down deep. Everyone has certain things that they are naturally more inclined to because of a combination of genes and environment. Many who are physically strong likely come from a gene pool where that was in abundance and then they were able to apply it an environment that rewarded those traits. Those people are physically strong and will do well in many, many circumstances. But SOF (regardless of the Service or country) is focused on pushing people to their limits. If you are used to things coming easy to you (even if you still have to train, go to practice, etc.), then SOF selection is going to be very difficult for you. If you don't have the right mindset, if you aren't there for the right reasons, you won't push on.You'll quit. And that's the one thing you have to learn not to do.

SOF operators strive to be the best. At everything. Everything is a competition and every challenge is an opportunity not to just overcome it and prove something to yourself but to actually beat everyone else. Be faster, stronger, smarter, funnier, etc. There is no place in the SOF community for someone who is wiling to settle for "good enough" in ANY endeavor.

Bottom line: While in school, you need straight As in every course you take.The only reason you can't get an A in every course you take is because you aren't willing to put in the time to study and prepare for the tests. "Not willing" is the key to failure in selection.

On top of that, you need to ensure that you are maxing out your PT. Know the standards you are going to be held to and MAX them. Again, there is no room for someone who can *pass* the PFT. SOF only wants those who can beat the maximums in every category. And do so AFTER a full workout. Every PFT you take in selection will be after you have already done a full workout by any normal human's standards. You'll do your 1.5 mile run after you've already done a mile of walking lunges. You'll do your push-ups after you've already done log carries. You'll do your crunches after you've already done hundreds of flutter kicks. If you can't max the PFT after all of that, its because you didn't put in the effort for it. And "not putting in the effort" is the key to failure in SOF.

Lastly, take only cold showers. No kidding. Cold showers are the bane of human existence. It is the most uncomfortable you can make yourself on a daily basis and it requires intense discipline to accept that as your day-to-day life. That it will never start with a hot shower. Every morning you can look forward to standing under ice coldwater while you wash-up. And really, you will find that this will be your life in selection, so get started now.

Straight As. Maximum PFT scores. Cold showers. That doesn't leave much time for socializing. It doesn't leave much time for drinking. It doesn't leave much time for sleep. Embrace it and you will succeed. Make excuses and don't waste your time with selection, you'll just leave with an unfulfilled sensation.

Physically, there are no special exercises you need to do but running long distances and swimming long distances will help. Seize every physical challenge you can find by competing in marathons, iron man races, and spartan events. Always find a way to push yourself to your very limits. That's the only way to train for SOF selection.

And then of course, at some point, you need to meet with a Navy recruiter.

Sunday, July 30, 2017

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 Click Here for more Norcros Charts. 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)