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[July 2008]
Norcros Sells Stake in H&R Johnson India
Norcros PLC, the home consumer products group, has sold its 18.51% interest in H&R Johnson (India) Ltd for a consideration of £3.7 million, net of costs and taxes (£4.1 million gross). The purchaser is HRJ India by means of a share buyback programme.
HRJ India is primarily involved in the manufacture and distribution of ceramic tiles in India. In the Norcros accounts for the year ended 31 March 2008, HRJ India was accounted for as a trade investment and made no financial contribution (2007: nil).
The Norcros Board said that its priority continued to be on managing the group's cost base, whilst at the same time investing selectively in the business for future growth. In addition, it said it continued to actively focus on cash management and debt reduction. The disposal of the Norcros investment in H&R Johnson (India) Ltd was therefore a helpful step in this regard.
John Brown, Norcros Chairman, commented: “The disposal of HRJ India is consistent with the objective of improving our return on investment. Against a backcloth of difficult market conditions, the Group continues to benefit from having market leading brands with strong positions in attractive market segments. Whilst targeting further reductions in our cost base, debt and associated interest costs, we will also continue to judiciously invest in both capital and revenue programmes to support the longer term development of the business”.
ENDS