Interim Management Statement Q1 2012
"International designers, manufacturer & distributor of innovative floorcoverings"
Date: Wednesday 15 August 2012 Immediate Release
VICTORIA PLC
INTERIM MANAGEMENT STATEMENT
Victoria PLC ('Group, 'Victoria' or 'Company') publishes its Interim Management Statement covering the period from 1 April 2012 to the date of this announcement.
Trading
Victoria's UK business proved robust in the period despite the extremely tough trading conditions still being experienced on the High Street. In the three months to 30 June 2012, underlying UK sales were up by 7.2% with any weakness seen in residential sales being compensated by a good performance in both the contract and export markets. Sales to the John Lewis Partnership and Insurance replacement market were also ahead of the comparable period.
The Group's entry into the Luxury Vinyl Tile market in the UK started to roll out into the residential market with an April launch and whilst it is still very early days the Board has been very encouraged by the excellent reaction from the market and the Group's customers. The new product portfolio is now also being rolled out into the contract market and, after some early wins the Board is very encouraged with progress.
Within the Australasian trading region, Victoria has launched a programme of Stainmaster® EverSoft™ solution dyed nylon carpet ranges and these have sold very well into the customer base. In the period under review the "right-sizing" of the Company's two Australian woollen Spinning Mills has been completed, both on-time and broadly in line with budget.
Although the significant slowdown in the Australasian consumer market witnessed in the first three months of the 2012 calendar year has now leveled off, its impact has nonetheless affected the beginning of this financial year. In the first quarter of the current financial year, revenues in Australia were down by 10.9% on what was a very strong comparable first quarter last year.
Total Group revenue in the period 1 April 2012 to 30 June 2012 was down by 7.0% compared to the corresponding period last year and by 5.9% in constant currency terms.
Summary
Overall, the trading conditions are very much in line with management's expectations. The combination of the tough trading environment and the Group's significant investment plans being made in the first half of this current financial year are likely to impact the trading result at the half-year stage. Nevertheless, as a result of the positive actions the Board has taken in the first-half of the year the Directors expect that the full year's result will be in line with expectations and more heavily weighted to the second-half than normal.
Strategic Review
As recently announced, the Board has undertaken a strategic review of the Company's businesses and concluded that Victoria's ongoing strategy should be to continue developing its Australian and UK businesses through sales growth, margin enhancement and a shift towards a distribution based business from its historic manufacturing and supply model. The Board has also concluded that corporate M&A activity should be considered where there are opportunities to generate accelerated returns to Shareholders and will work with its financial advisers to maximise shareholder value.
The Board will be updating shareholders further on both trading and strategic plans at the forthcoming Annual General Meeting to be held at 11.00 am on 31 August 2012 at the Company's Registered Office: Worcester Road, Kidderminster, Worcestershire, DY10 1JR.
Move to AIM
In the Annual Report for the year ended 31 March 2012, the Company indicated that it intended to put a resolution to shareholders proposing that the listing of the Company's ordinary shares be moved from the Official List to AIM.
The Company has substantially completed the work required to put this proposal to shareholders, but the recent changes to the Board have caused a hiatus in the process. The Board hopes to be in a position to dispatch the required circular to shareholders shortly after the Annual General Meeting.
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Enquiries: |
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Victoria PLC
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TooleyStreet Communications (Media & IR relations) |
Seymour Pierce (Broker to the Company) |
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Alan Bullock, Group Managing Director |
Fiona Tooley |
Corporate Finance |
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Office: +44 (0) 1562 749300 |
Mobile: + 44 (0) 7785 703523 |
Jonathan Wright or Tom Sheldon |
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Mobile: +44 (0) 7785 325701 |
Tel: +44 (0) 121 309 0099 |
Corporate Broking |
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Richard Redmayne or Jacqui Briscoe |
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Ticker: VCP.L Premium Listing |
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Tel: +44 (0) 20 7107 8000 |
This information is provided by RNS
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