Norcros, the Wilmslow, Cheshire-based bathroom products business, said it will close its Johnson Tiles South Africa (JTSA) business, which is part of its South African subsidiary, Norcros South Africa (Pty) Ltd (NXSA).

Norcros employs about 2,000 people and its brands include Triton, MERLYN, Grant Westfield, VADO, Croydex, and Abode in the UK, and Tile Africa, TAL, Johnson Tiles South Africa, and House of Plumbing in South Africa.

“We announce today that the outcome of the strategic review is that Johnson Tiles SA will cease manufacturing at the end of this month, with the closure of the business being carefully managed thereafter,” said Norcros.

“Inventory will continue to be sold, as usual, through our tile and bathroom retailer, Tile Africa. Johnson Tiles SA is based in Olifantsfontein and had external revenue in FY25 of £12.3m representing less than 4% of Group revenue.

“The business made a small underlying operating loss, pre central costs, and had an operating cash outflow of £4.4m in the period. The business had fixed assets of c.£5m (including land and buildings which will continue to be used by the Group), and working capital of c.£14m including inventory of c.£16m as at 31 March 2025.

“The closure process, including the manufacturing and business closure costs and subsequent inventory realisations, is expected to be cash neutral when complete.

“There will be a small cash outflow in FY26, offset in the following year as the remaining inventory is sold. All commitments to our staff, customers and suppliers will be met. Going forward, the Group will now show the financial performance at Johnson Tiles SA separately in the Company’s financials as a discontinued operation.”

Norcros CEO Thomas Willcocks said: “In June 2023, we communicated our strategic priorities, namely Portfolio Development, Organic Growth, Operational Excellence and ESG with a focus on ensuring that we develop a capital light and cash generative business portfolio.  

“After a thorough review process, the difficult decision to close our Johnson Tiles business in South Africa was reached, whilst recognising our long and proud history of tile manufacturing in the country and more importantly the impact on our people.

“I would like to thank the Johnson Tiles team for their determination, commitment and contribution, especially over the last five years that have been characterised by significant and ongoing macro-economic challenges.

“We have an excellent South African management team who will now focus on growing our remaining profitable, and well invested businesses in the region.”