Victoria Carpets reports revenue growth

Victoria Carpets

Victoria PLC the international designers, manufacturers and distributors of innovative floorcoverings, which is headquartered in Kidderminster, has announced its interim results for the 26 weeks ended 29 September 2018.

Revenue grew by 44 per cent versus the same period in the prior year, from £189.5 million to £273.4 million. Like-for-like revenue grew more than five per cent in UK & Europe soft flooring, where there have been no acquisitions in the period, and more than three per cent across the Group.

Victoria PLC has operations in the UK, Spain, Italy, Belgium, the Netherlands and Australia and employs approximately 3,000 people across more than 20 sites. Victoria is the UK’s largest carpet manufacturer and the second largest in Australia, as well as the largest manufacturer of underlay in both regions.

Geoff Wilding, Executive Chairman of Victoria PLC, said: “Victoria continued to make strong operational progress during the period. We again delivered against our strategy designed to grow market share, improve cash generation, and increase earnings per share, via both acquisition and organically, and we continue to focus on synergies and integration to ensure operational excellence within the Group.

“Our progress was made against a backdrop of a challenging market and our strategy of achieving product and market diversification over the last few years has enabled us to adapt well to various market conditions and tailor our offering accordingly. This remains a key strength of the Group relative to its competitors. In the UK, for example, we have been able to materially grow market share by introducing new value-orientated products and brands (alongside existing, predominantly mid-upper priced, products), safe in the knowledge that, although our margin growth is a little slower this year – albeit expected to be some 200 basis points higher than FY2018 – growth will be continued next year driving returns for our shareholders.

“With the Group’s focus on generating cash, driving earnings, and continued operational integration, I look forward to the second half of the year with confidence and to updating our shareholders on our progress in due course.”

Following the period end, the Group considered a Bond issue to refinance its existing bank facilities but the rates available at that time were not in Shareholders’ best interests. The Group says it may consider revisiting this in the future if appropriate