Victoria PLC, the Kidderminster-based international designer and manufacturers of carpers and other innovative flooring, has reported very strong trading across the board, with double-digit percentage increases over 2019 (it said that 2020 comparatives are meaningless due to the complete lockdowns covering this period last year).
Encouragingly, leading indicators, such as housing transactions, savings rates, and consumer confidence, suggest that the current high levels of consumer demand for Victoria’s products will be sustained for the foreseeable future.
Last month the company announced a substantial expansion of its existing artificial landscaping grass business with the acquisition of Edel Group BV, the Netherlands-based designers, manufacturers, and distributers of artificial grass and carpets. Victoria paid £42.9 million.
Work continues on further acquisition opportunities and the Board anticipates being able to report additional acquisition-led growth in the short-term. Following the Koch Equity Development preferred equity investment in November and the subsequent bond issue in February and March of this year, the Company has a significant amount of capital ready to deploy for acquisitions and expects to do so, whilst maintaining the Group’s stated financial policy.
Chief Executive, Philippe Hamers, said: “In my 30 years in the industry, I have never known it to be busier at this time of the year. Our continually enhanced service proposition has proven to be the cornerstone of the Company’s growth trajectory. Victoria’s production is running at full capacity and some of our factories have orders taking all their output through until autumn. We are out-sourcing some production to ensure service standards are met and market share gains sustained.
“The value of our management team’s depth of industry experience and entrepreneurial initiative has proven invaluable as we have been able to overcome the risk of potential raw material shortages by leveraging our long-term relationships, size, and extensive knowledge of supply chain options.
“I am confident shareholders will be very pleased with the way the business is performing this year.’