AGM Statement
Victoria PLC
24 July 2003
Issued by Citigate Dewe Rogerson, Birmingham
Date: Thursday 24 July 2003
Immediate Release
At the Annual General Meeting held today (24 July 2003), Bob Gilbert, Chairman
told shareholders:
Having now completed the first quarter of the new financial year, I am pleased
to report that trading has remained strong across the Group, despite difficult
market conditions in both the UK and Australia.
The Australian operation has continued to perform well, with sales significantly
ahead of the previous year and with profits benefiting from the acquisition of
Pacific Textiles in October 2002. There are some indications that the market is
becoming increasingly difficult, but so far the momentum of our business has
meant that this has not impacted on the Division's performance and we believe we
are continuing to gain market share at the expense of our competitors.
Similarly, market conditions in the UK have also been challenging. Sales from
Victoria Carpets have continued to show strong year-on-year growth and this has
also resulted in increased profitability. The new carpet backing line, capable
of producing carpet in widths up to 5 metres, has now been fully commissioned
and is finishing an increasing proportion of tufted output. The reaction to
carpet backed using this new process from the retail trade is very positive.
At Westwood Yarns, our yarn spinning Division in Holmfirth, West Yorkshire, the
capital expenditure programme of around £1 million is now substantially complete
and we expect the new spinning, winding, and heat setting capacity and
facilities to be fully on stream next month.
As previously announced, Brian Priest, Managing Director of Westwood Yarns will
be retiring with effect from today. Once again, on behalf of the Board and all
at Victoria, I would like to wish Brian and his wife Ann, a long, happy and
healthy retirement.
Yesterday, the Board was pleased to announce that the Group had entered into an
agreement with the provisional liquidator of Navan Carpets Limited ('Navan') to
purchase certain assets including brand names, inventory, plant and machinery
('the Acquisition').
Navan, based in Navan, County Meath, Ireland is one of the most respected and
long established manufacturers and distributors of leading carpet brands in the
Irish residential and contract markets. The Navan brand, which we have now
acquired, has been synonymous with quality carpeting since its inception in
1938. Within the residential market, the brand is pre-eminent in most retail
carpet showrooms with its product brands, Claire, Crown, and Yougal having
extremely high customer awareness. Navan's reputation for the supply of
high-quality contract carpeting is also highly renowned in both Ireland and the
USA. Navan is also a significant supplier to the hotel sector to such groups as
Four Seasons and Jury's.
continued...
-2-
The consideration for the Acquisition of Navan is £1.605 million subject to
adjustment following stocktaking after completion.
Following the Acquisition, Navan will operate as a Division of Munster Carpets
Limited which we acquired in October 2002. A number of Navan's former sales
related employees will be recruited by Victoria.
The plant being acquired under the terms of the acquisition will be transferred
to our manufacturing operations in Kidderminster. This will immediately fully
utilise the Group's Axminster facility where there is capacity to service both
the Axminster business of Victoria and Navan whilst at the same time ensuring
that the Axminster ranges continue to be manufactured to the highest standards
of quality and efficiency.
We believe that Navan will make a positive contribution to the Group's pre-tax
profits in the current financial year and the Directors believe that, providing
the prevailing economic conditions do not deteriorate, we can look forward with
confidence to another successful year ahead.
Enquiries:
Bob Gilbert, Chairman
Mark Lee, Group Finance Director Fiona Tooley/Katie Dale
Victoria P.L.C. Citigate Dewe Rogerson
Tel: 01562 749300 Tel: 0121 455 8370
Mobile: 07785 325701 Mobile: 07785 703523
www.victoria.plc.uk
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