Kidderminster-based Victoria PLC the international designers, manufacturers and distributors of carpets and flooring, has said that while the ongoing Covid-19 pandemic has impacted recent trading conditions, the Group expects that performance for the financial year ending 28 March 2020 will be broadly in line with market expectations.
But it has warned that Covid-19 is likely to interrupt supply chains, workforce sustainability and demand. “Unquestionably a decline in demand is likely to have the most significant impact on Victoria. Together with the general loss of consumer confidence following the emergence of the virus, in some countries potential customers cannot buy flooring – even if they wish to do so – due to the closure of all non-essential retail businesses,” it said in a statement.
The Board, however, is clear that the situation does not present an existential threat to Victoria. Whilst short term trading will be affected, the long-term outlook for the Group remains positive, it said.
“Once the storm has passed, people will again want flooring, and revenues and profits will recover quickly for businesses in a position to respond to renewed demand. There is no doubt in our minds that Victoria will survive the Covid-19-induced disruption we presently face and, whether it lasts three months, six months, or even longer, we do not want to lose that time in executing our business plan. Like the many other severe events Victoria has faced in its 125 year history – two world wars, previous viral pandemics, and several financial recessions – this period will pass.”