AGM statement - Strong Growth Continues
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For Immediate Release
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7 September 2021 |
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Victoria PLC
('Victoria', the 'Company', or the 'Group')
AGM statement - Strong Growth Continues
Victoria PLC (LSE: VCP) the international designers, manufacturers and distributors of innovative flooring, is pleased to announce the following trading statement ahead of its AGM to be held later today.
· Trading continues to be solid, with consumers continuing to invest in their homes and commercial demand for flooring returning. Year-to-date, revenues are c.+70% ahead of the same period last year (c.+50% on a like-for-like basis excluding the impact of acquisitions), and more than 50% ahead of the same period in 2019. This is despite the extended and on-going lockdowns in Australia, that have materially affected sales in that division, which normally makes up c.15% of Group revenues (although the experience of the last 18 months suggests that the impact of the Australian lockdowns will be sales deferred, rather than sales forgone).
· Inflationary pressures on raw materials experienced earlier in the year have abated somewhat, although, at the time, the Group took action promptly to broadly maintain operating margins.
· The Group's investment in its UK logistics operation continues to pay dividends, with the superior service Victoria provides to customers driving an increased share-of-wallet.
· The acquisitions in Italy, the Netherlands, and the USA, as announced earlier in the year are performing in line with expectations. In particular;
o The synergies being realised as the operational integration moves forward in Italy are better than expected by management. It has become clear that, with the completion of some minor upgrades, the clay atomizers acquired as part of Santa Maria will be capable of servicing more production than anticipated - reducing the cost of clay, the single-most important raw material in a ceramic tile.
o Work is already underway to distribute certain products manufactured in the Group's European factories into the USA via the Cali on-line business.
o Consumer demand for Cali's unique LVT (luxury vinyl tile) products continues to exceed management expectations. Consequently, LVT sales now amount to more than 10% of Group revenues.
o The continued growth of our artificial grass business (annual revenues now exceed €80 million), with the addition of the most premium brands in this product category (Royal Grass and Edel Grass), has enabled some margin-enhancing vertical integration in fibre extrusion. There is further strong growth potential with this product category as consumer demand continues to grow.
· The Group continues to be involved in active negotiations on several high quality, value-creating acquisition opportunities, and has the capital in place to execute on them.
The Group will provide a full update on trading for the 26 weeks ended 2 October 2021 when it announces its Interim Results in November.
Victoria's Annual General Meeting at 1.00pm today, is being held at the office of Brown Rudnick LLP, 8 Clifford Street, London, W1S 2LQ.
For more information contact:
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Victoria PLC Geoff Wilding, Executive Chairman Philippe Hamers, Group Chief Executive Michael Scott, Group Finance Director |
+44 (0) 1562 749 610 |
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Singer Capital Markets (Nominated Adviser and Joint Broker) Rick Thompson, Phil Davies, Alex Bond
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+44 (0) 207 496 3095 |
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Berenberg (Joint Broker) Ben Wright, Mark Whitmore, Tejas Padalkar
Peel Hunt (Joint Broker) Adrian Trimmings, Andrew Clark
Buchanan Communications (Financial PR) Charles Ryland, Chris Lane, Vicky Hayns, Tilly Abraham |
+44 (0) 203 207 7800
+44 (0) 207 418 8900
+44 (0) 20 7466 5000 |
About Victoria
Established in 1895 and listed since 1963 and on AIM since 2013 (VCP.L), Victoria PLC, is an international manufacturer and distributor of innovative flooring products. The Group, which is headquartered in Kidderminster, UK, designs, manufactures and distributes a range of carpet, flooring underlay, ceramic tiles, LVT (luxury vinyl tile), artificial grass and flooring accessories.
Victoria has operations in the UK, USA, Spain, Italy, Belgium, the Netherlands and Australia and employs approximately 3,800 people across more than 25 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.
The Group's strategy is designed to create value for its shareholders and is focused on consistently increasing earnings and cash flow per share via acquisitions and sustainable organic growth. (Further information about Victoria can be found on its website, www.victoriaplc.com .)
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