Victoria PLC, the Kidderminster-headquartered international designers, manufacturer and distributors of flooring, has achieved record results for FY21.
The Group expects, subject to finalisation of the accounts and audit, FY21 revenues to be in excess of £640 million, up from £621.5 million last year – despite the impact of the April-May 2020 lockdowns, which saw more than £50 million of revenue reduction in those two months compared to the prior year – and underlying EBITDA to be in excess of £120 million (2020: £118.1m).
The record trading results were driven by organic performance. Victoria has invested heavily over the past five years in building a strong management team in the European flooring industry. Their collective deep operational experience and sense of ownership (almost all managers are shareholders), have delivered significant value for shareholders over an extremely challenging 12 months.
Victoria has invested a significant amount of management focus during the past year identifying additional suitable acquisition opportunities and, more recently, the Company has reorganised its financing arrangements to provide it with a significant amount of capital for acquisitions, as well as extending its debt financing maturities and reducing interest rates.
The various, and constantly changing, Covid-19 related travel restrictions that have been in place in the UK and across Europe during the first three months of the year have impacted the pace of due diligence. However, recent easing of restrictions in key geographies have reduced or eliminated this constraint and the Board anticipates being able to report further acquisition-led growth in the near future.
The Group said it continues to experience strong, ongoing consumer demand across its key markets. Furthermore, housing transactions, a key 12-18 month leading indicator of flooring sales, are at very high levels – not only in the UK, but across its markets (more than 70 per cent of the Group’s earnings are now generated from outside the UK), which suggests demand will be maintained for some period.