WILMSLOW: Norcros, the U.K. and Ireland’s leading bathroom products company, announced Tuesday that it will cease manufacturing at Johnson Tiles South Africa (JTSA) by the end of the month, following a strategic review of the business.
JTSA, part of Norcros’ South African subsidiary Norcros South Africa (Pty) Ltd, will wind down operations after production stops, with inventory continuing to be sold through Tile Africa, the company’s tile and bathroom retailer.
The Olifantsfontein-based business reported £12.3 million ($15.2 million) in external revenue for fiscal 2025, accounting for less than 4% of Norcros’ group revenue. JTSA recorded a small underlying operating loss before central costs and an operating cash outflow of £4.4 million ($5.4 million) in the period. As of March 31, 2025, the business held fixed assets worth approximately £5 million ($6.2 million), including land and buildings that will remain in use by the group, and working capital of around £14 million ($17.3 million).
The closure process, including manufacturing shutdown costs and inventory sales, is expected to be cash neutral upon completion. A minor cash outflow is anticipated in fiscal 2026, offset by inventory sales the following year. Norcros confirmed it will meet all commitments to employees, customers and suppliers.
Going forward, JTSA’s financial performance will be reported separately as a discontinued operation.
Thomas Willcocks, Norcros CEO, said the decision aligns with the company’s focus on building a “capital-light and cash-generative” portfolio.
“After a thorough review, we made the difficult choice to close Johnson Tiles South Africa, recognizing both its long history and the impact on our people,” Willcocks said. He thanked employees for their dedication amid “ongoing macroeconomic challenges.”
Norcros’ South African management will now prioritize growth in its remaining profitable businesses in the region.
Norcros is a market-leading supplier of sustainable bathroom and kitchen products in the U.K., Ireland, South Africa and select export markets. Its brands include Triton, MERLYN, VADO and Tile Africa.
The company, headquartered in Wilmslow, Cheshire, employs around 2,000 people and is listed on the London Stock Exchange.