Kidderminster-headquartered Victoria PLC, the international designer, manufacturer and distributor of flooring, has reported a recovery in sales, following the restart of operations.
Following a dramatic decline in revenues in March and April due to government-mandated closure of all of its manufacturing operations (with the exception of Australia, which is about 14 per cent of itsnormal revenues) and many shops across Europe, sales began to recover in mid-May with the easing of restrictions in some countries.
The company said that it’s benefitted from geographic diversification in manufacturing and customer locations as different countries ended their lockdowns at varying times.
Group revenues have, as a result, steadily increased and over the last three weeks were approximately 85 per cent of management’s pre-Covid-19 budget. Further recovery is expected as orders begin to flow to Victoria from UK retailers, who were the last to start trading as they were only allowed to re-open last week.
Much of Victoria’s product is exported outside of its country of manufacture and the company said it is very encouraging that consumers within countries which did not lock down have shown consistent demand throughout the period, and those that exited lock down first (Germany and Austria, for example, who re-opened retail two months ago) have maintained very good demand following the initial rapid increase after Victoria restarted operations.
Victoria has not accessed any government credit-line schemes and does not foresee any current need to raise capital for normal operating activities.
Whilst trading over the last quarter has, obviously, been affected, the Group predicts that the long-term outlook remains positive.