Norcros Announces Closure of Johnson Tiles South Africa
Why we think this is neutral
This RNS announcement provides an update on the strategic review of the Johnson Tiles South Africa (JTSA) business, which will result in the closure of the manufacturing operations. While this represents a restructuring of the company's South African operations, the announcement does not contain any of the mandatory news types that would warrant a stronger sentiment score.
Key Points
- Johnson Tiles South Africa to cease manufacturing at the end of June 2025
- JTSA had external revenue of £12.3m in FY25, less than 4% of Group revenue
- JTSA made a small underlying operating loss and had an operating cash outflow of £4.4m
- Closure process expected to be cash neutral when complete
Summary
Norcros plc has announced the outcome of a strategic review of its Johnson Tiles South Africa (JTSA) business, which is part of its South African subsidiary Norcros South Africa (Pty) Ltd. The review has concluded that JTSA will cease manufacturing at the end of this month, with the closure of the business being carefully managed thereafter. Inventory will continue to be sold through the company's Tile Africa retail chain. JTSA had external revenue of £12.3m in FY25, representing less than 4% of Group revenue, and made a small underlying operating loss. The closure process is expected to be cash neutral when complete.