TIDMVCP
RNS Number : 0869O
Victoria PLC
29 September 2023
Victoria PLC
('Victoria' or the 'Company')
AGM Statement
Victoria PLC (LSE: VCP), the international designers,
manufacturers and distributors of innovative flooring, provides an
update to shareholders ahead of its Annual General Meeting ('AGM')
today at the offices of Berenberg, at 60 Threadneedle Street,
London, EC2R 8HP at 2.30 p.m. BST.
Executive Chairman Geoff Wilding commented:
Our audited results for the year ended 1 April 2023 showed the
Company's tenth consecutive year of revenue and underlying profit
growth. We sold in excess of 200 million square metres of flooring
products and for the first time in the Company's history we
recorded annual revenues of over GBP1.45 billion. As a result, we
have achieved a scale that, once current integration projects
complete, will result in higher productivity, more efficient
logistics, wider distribution, and lower input costs than almost
all our competitors.
However, over this last week the strong outlook for Victoria has
been overshadowed by the considerable reaction to our auditor's
qualified opinion deriving from incomplete accounting records at a
small subsidiary, Hanover Flooring Limited - a business which as a
whole represents less than 1.25% of Group turnover. The Board
wishes to stress that there was no wrong-doing whatsoever at
Hanover that impacts the Group's financial statements and nor are
the auditors alleging this. Hanover's issue was predominantly one
of having heightened financial risk due to inadequate accounting
records associated with no more than GBP400,000 of customer
receipts.
I would like to assure our stakeholders that we had identified
the issues at this small subsidiary and allocated additional
experienced finance resources who have put appropriate controls in
place to ensure adequate accounting records and internal controls
will be maintained to the high levels we have solidly embedded
across the rest of the Group. From the extensive work undertaken by
ourselves and a 'Big-Four' accounting advisor, we are very clear
that all payments due have been received, no money is unaccounted
for and Victoria has suffered no loss. We are also very clear that
there are no other such concerns across the rest of the Group and
our auditors have confirmed that these accounts give a true and
fair view of the Company. All of this has sadly detracted from the
fact that Victoria continues to trade solidly, and we expect to see
a material step-up in earnings and free cash flow, delivering
deleveraging and shareholder value creation.
Therefore, turning to our future outlook, I would like to remind
our stakeholders that FY2024 is expected to be a year of two
halves, with stronger H2 earnings as the productivity gains from
completion of the major integration projects come to fruition. As
outlined in our full year results, once completed these projects
are expected to conservatively result in a GBP20+ million per annum
increase in EBITDA and we expect our free cash flow to increase
sharply from H2 FY2024, and further in FY2025 as we receive the
full annual benefits of the integration.
As already confirmed, Q1 trading was in line with the Board's
forecast and consistent with consensus expectations for FY2024.
Demand remains generally stable across the Group's markets and
margins are improving in line with a fall in input costs. Our
objective in FY2024 is not to chase volumes but to protect and
improve margins and we have right-sized production capacity to
promote this whilst anticipating modest volume growth in the coming
quarters. Our ability to create 'design to cost' products allows us
to maintain margins while continuing to meet customer demand at
given price points.
Given the anticipated productivity improvements, cost savings,
and working capital enhancements expected later this year and the
increase in financial performance these bring, the Board remains
confident that Victoria PLC will continue to deliver outsized
returns for its shareholders.
For more information contact:
Victoria PLC www.victoriaplc.com/investors-welcome
Geoff Wilding, Executive Chairman Via Walbrook PR
Philippe Hamers, Group Chief Executive
Brian Morgan, Chief Financial Officer
Singer Capital Markets (Nominated Adviser and Joint
Broker)
Rick Thompson, Phil Davies, James Fischer +44 (0)20 7496 3095
Berenberg (Joint Broker) +44 (0)20 3207 7800
Ben Wright, Richard Bootle
Peel Hunt (Joint Broker) +44 (0)20 7418 8900
Adrian Trimmings, Andrew Clark
Walbrook PR (Media & Investor Relations) +44 (0)20 7933 8780 or victoria@walbrookpr.com
Paul McManus, Louis Ashe-Jepson, +44 (0)7980 541 893 / +44 (0)7747 515
Alice Woodings 393 /
+44 (0) 7407 804 654
About Victoria PLC ( www.victoriaplc.com )
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 Company, which is
headquartered in Worcester, 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, Spain, Italy, Belgium, the
Netherlands, Germany, Turkey, the USA, and Australia and employs
approximately 7,300 people across more than 30 sites. Victoria is
Europe's largest carpet manufacturer and the second largest in
Australia, as well as the largest manufacturer of underlay in both
regions.
The Company'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.
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END
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