TIDMVCP
RNS Number : 0117U
Victoria PLC
17 June 2009
Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Wednesday, 17 June 2009
Embargoed: 7.00am
Victoria PLC
international manufacturer and distributor
of carpets and floor-coverings, supplying the mid to high end residential market
and
contract sector both in the UK and overseas.
Preliminary Results for the 53 weeks ended 4 April 2009
+----------------------------------------+--------------+------------+---------+
| | 2009 | 2008 | Change |
+----------------------------------------+--------------+------------+---------+
| Revenue | GBP62.15m | GBP61.70m | +0.7% |
+----------------------------------------+--------------+------------+---------+
| Operating profit | GBP2.23m | GBP4.19m | -46.9% |
+----------------------------------------+--------------+------------+---------+
| Profit before tax | GBP1.46m | GBP3.51m | -58.3% |
+----------------------------------------+--------------+------------+---------+
| Operating margin | 3.6% | 6.8% | -3.2% |
+----------------------------------------+--------------+------------+---------+
| Basic adjusted | 15.01p | 36.54p | -58.9% |
| earnings per share | | | |
+----------------------------------------+--------------+------------+---------+
| Total interim and | 8.0p | 14.0p | -42.9% |
| proposed dividend | | | |
+----------------------------------------+--------------+------------+---------+
* Considerable investment made in plant, equipment, products and marketing
enabling the business to exploit both current and future business opportunities
* Current borrowings remain comfortably within the Group facilities and banking
relationships are strong
* The Group's strategy has enabled it to remain profitable and cash generative
whilst maintaining a strong balance sheet
"The past twelve months have been extremely challenging throughout the Group,
with the global down-turn remarkable in its severity and pace."
"No doubt, some of the markets in which the Company operates will in the
short-term remain challenging but the Directors believe that the Group is well
invested with "state of the art" plant and equipment and supported by highly
motivated, strong and experienced managers in all of its businesses, capable of
steering the business through whatever conditions the market presents."
"The first-half of the Group's financial year is seasonally the weaker of the
two, and there is currently no expectation of any market improvement. This,
coupled with further planned restructuring costs, is likely to see the
first-half remaining challenging."
"The Group has a strong Balance sheet with relatively low net gearing. The
breadth of the Group's operations and channels to market, the lean vertically
integrated supply chain, excellent product portfolio and experienced management
team, enables the Group to be confident it will manage the near term market
weakness and, when confidence returns, continue to target medium to long term
growth."
FULL STATEMENT ATTACHED
+--------------------------------------------+----------------------------------------+
| Enquiries: | |
+--------------------------------------------+----------------------------------------+
| | |
+--------------------------------------------+----------------------------------------+
| Victoria PLC | Citigate Dewe Rogerson |
+--------------------------------------------+----------------------------------------+
| Alan Bullock, Group Managing Director | Fiona Tooley, Director |
+--------------------------------------------+----------------------------------------+
| Mobile: +44 (0) 7785 325701 | Mobile: +44 (0) 7785 703523 |
+--------------------------------------------+----------------------------------------+
| Ian Davies, Group Finance Director | Keith Gabriel, Senior Account Manager |
+--------------------------------------------+----------------------------------------+
| Mobile: +44 (0) 7770 638791 | Mobile+ 44(0) 7770 788624 |
+--------------------------------------------+----------------------------------------+
| Today: +44 (0) 20 7638 9571 (until | Today: +44 (0) 20 7638 9571 |
| 11.30am) | |
+--------------------------------------------+----------------------------------------+
| Office: +44 (0) 1562 749300 | Office: +44 (0) 121 362 4035 |
+--------------------------------------------+----------------------------------------+
| www.victoria.plc.uk |
+--------------------------------------------+----------------------------------------+
Worcester Road, Kidderminster, Worcestershire DY10 1JR England
Telephone: 01562 749300 Fax: 01562 749649
Registered in England No. 282204
-2-
Victoria PLC
Preliminary Results for the 53 weeks ended 4 April 2009
CHAIRMAN'S REPORT
Re-visiting my statement in last year's report, no one would have believed that
the world's trade and economic landscape would be where it is today. Indeed,
the year started well for the Group with the continuation of the growth
experienced in the last few years, especially in Australia.
However, events overtook us and the Group spent the remaining period focused on
sustaining sales in a worsening economic environment, whilst making necessary
reductions to fixed costs and overheads. It is reassuring to report that the
combination of skills and experience of the executive and the employees, and
their strength in depth, are just what the Group would wish for in such
turbulent times. Further details are contained within the Business Review.
It will, therefore, come as no surprise to shareholders to learn that whilst
total sales were slightly up across the Group, supported in part by local
currency gains, profits were substantially down as margins came under severe
pressure.
Financial Results
Revenue for the Group increased by 0.7% to GBP62.15m (2008: GBP61.70m), but
profit before tax declined 58.3% to GBP1.46m (2008: GBP3.51m). Earnings per
share (basic adjusted, as per Note 2) were 15.01p (2008: 36.54p).
At the year-end, the Group's net borrowings increased by 50.4% to GBP11.43m
(2008: GBP7.60m). With the completion of the Group's investment plans, future
capital expenditure is likely to be well below current depreciation levels.
Current borrowings remain comfortably within the Group facilities and banking
relationships are strong.
Dividend
The Board was pleased to re-introduce an interim dividend in December 2008 after
a gap of 28 years, paying 4.0p per share. However, and in the light of the
current market conditions, the Board is now recommending the payment of a
reduced final dividend of a further 4.0p per share, making a total of 8.0p for
the full year (2008: 14.0p). Whilst the Board is disappointed not to be
maintaining the dividend at last year's level, it believes that it is prudent at
this time to focus on cash generation and reducing the net debt. The Board hopes
that as the Group returns to higher earnings levels, it can in turn return to
the progressive dividend policy adopted in the past.
The proposed final dividend, which is subject to shareholder approval at the
Annual General Meeting which is to be held on 30 July 2009, will be paid on 3
August 2009 to all shareholders on the register at 26 June 2009, with the
ex-dividend date being 24 June 2009.
Board Changes
As reported at the Half-year, Nikki Beckett has become the Senior Non-executive
Director and taken on the additional responsibilities of being Chairman of both
the Audit and Remuneration Committees. The Group has chosen not to seek a
replacement for Aram Shishmanian at this time, (who left in November to join the
World Gold Council), following consultation with its major shareholders. This
decision will be reviewed periodically in the future.
continued...
-3-
Strategy and Operations
Much time was invested in the early part of the year in planning for the future
development of the Group over the next three to five years.
In the UK, planned investment in both people and products for the development of
new business channels produced encouraging results. The recruitment of key
personnel in the Contract Commercial division delivered sales growth of 62%
albeit from a low base, which helped buffer the decline in domestic sales to the
residential market. Other key appointments in both the UK Export division and
the Irish operation pave the way for future growth and profitability in these
areas. Similarly, the recent appointment of a Vice President Finance and
General Manager to the Canadian joint venture will further strengthen that
business.
Following the adoption of the Long Term Incentive Plan by shareholders at the
AGM last July, the scheme was implemented in December. However, the
introduction of a broader based employee savings scheme has been planned for
later in this financial year.
Outlook
The sometimes painful actions undertaken in all parts of the Group have
repositioned the cost base in line with expected sales. The pressure on margins
continues, but the cost base reduction helps.
Management and employees together, have responded to the tough market conditions
by participating in the Group's efforts to cut its cloth to suit the conditions.
This must be seen as a strength and a credit to the good relations that exist
across the geographies. On behalf of both the Shareholders and the Board, I
would like to express their thanks and gratitude for the efforts made by all
throughout the year.
The first-half of the Group's financial year is seasonally the weaker of the
two, and there is currently no expectation of any market improvement. This,
coupled with further planned restructuring costs, is likely to see the
first-half remaining challenging.
The Group has a strong Balance sheet with relatively low net gearing. The
breadth of the Group's operations and channels to market, the lean vertically
integrated supply chain, excellent product portfolio and experienced management
team, enables the Group to be confident it will manage the near term market
weakness and, when confidence returns, continue to target medium to long term
growth.
Alexander Anton
Chairman
-4-
Victoria PLC
Preliminary Results for the 53 weeks ended 4 April 2009
2009 BUSINESS REVIEW
The business
Victoria PLC is a successful and well established international manufacturer and
distributor of carpets and floor-coverings, supplying the mid to high end
residential market and contract sector both in the UK and overseas.
Developing and manufacturing high quality, design-led products, whether produced
internally in modern vertically integrated facilities in both the UK and
Australia or outsourced using "best of class" products of differentiation to
exploit the Victoria "brand", the business seeks to achieve a market leading
position in the geographic areas in which it is represented.
Financial results for 2009
The past twelve months have been extremely challenging throughout the Group,
with the global down-turn remarkable in its severity and pace.
The Group's past positioning, to help offset the cyclical nature of the
Industry, has enabled it to remain profitable and cash generative at an
operational level in each of its divisions.
The performance of each regional division in the financial year ended 4 April
2009 in terms of revenue, operating profit and operating margin is given in the
table below:
+---------------------------+------------+------------+--------------+------------+--------------+------------+
| Segmental performance | Revenue | Operating profit | Operating margin |
+---------------------------+-------------------------+---------------------------+---------------------------+
| | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 |
+---------------------------+------------+------------+--------------+------------+--------------+------------+
| | GBP000 | GBP000 | GBP000 | GBP000 | % | % |
| | | | | | | |
+---------------------------+------------+------------+--------------+------------+--------------+------------+
| UK | 24,326 | 27,149 | 408 | 1,335 | 1.7 | 4.9 |
+---------------------------+------------+------------+--------------+------------+--------------+------------+
| Ireland | 5,949 | 6,075 | 143 | 387 | 2.4 | 6.4 |
+---------------------------+------------+------------+--------------+------------+--------------+------------+
| Australia | 31,875 | 28,477 | 2,257 | 3,051 | 7.1 | 10.7 |
+---------------------------+------------+------------+--------------+------------+--------------+------------+
| Central costs | | | (580) | (579) | | |
+---------------------------+------------+------------+--------------+------------+--------------+------------+
| Group total | 62,150 | 61,701 | 2,228 | 4,194 | 3.6 | 6.8 |
+---------------------------+------------+------------+--------------+------------+--------------+------------+
| |
| Business Review - results for the year |
+-------------------------------------------------------------------------------------------------------------+
| Associate company | Revenue | Operating profit* | Operating margin |
+---------------------------+-------------------------+---------------------------+---------------------------+
| | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 |
+---------------------------+------------+------------+--------------+------------+--------------+------------+
| | C$000 | C$000 | C$000 | C$000 | % | % |
| | | | | | | |
+---------------------------+------------+------------+--------------+------------+--------------+------------+
| Canada | 9,309 | 10,154 | 383 | 877 | 4.1 | 8.6 |
+---------------------------+------------+------------+--------------+------------+--------------+------------+
* Associated company operating profit is before interest, tax, related party
management charges and one-off items.
Divisional review
The Group is organised through four geographical regions, with each region
controlled by a managing director who, with his team, is responsible for setting
growth and development objectives. Performance is then monitored against agreed
targets for each division:
United Kingdom
Despite the difficulties with the UK economy and, in particular, in the housing
market, which has resulted in some of the worst trading conditions seen in
decades, the UK division has made some significant progress against the
objectives set last year in support of the Group's overall strategic objectives
and the division remained profitable in the year as a whole.
continued...
-5-
Revenue for the period was down by 10.4% to GBP24.33m (2008: GBP27.15m), with
operating profit down 69.4% to GBP0.41m (2008: GBP1.34m), reflecting as
anticipated the impact of the overall economic conditions.
Reviewing the financial year, the division started off positively with revenue
growth in Q1. Thereafter, economic confidence weakened and the business
witnessed a significant fall-off in trade in the residential carpet sector as
consumer confidence evaporated from October 2008.
In the UK, the carpet market was estimated to be down by in excess of 20%,
whereas Victoria's carpet sales were only down 9.2% from GBP24.86m to GBP22.57m.
The Group believes that it has continued to gain market share despite these very
difficult conditions, which is a testament to its products, service and people.
Victoria's carpet sales into the UK residential market through its targeted
independent retailers were down by 17.5% in the year as the impact of the
financial crisis, housing market collapse and worldwide recession affected
consumer discretionary spending.
Victoria's move into the contract floor-covering market through the
architect/designer route to market, a strategic initiative for 2008/09, has also
proven to be defensive and helped off-set the down-turn seen in the residential
carpet market. Victoria has invested heavily, establishing a dedicated contract
sales team and a programme of contract orientated product ranges. Whilst the
contract market itself is not immune from the recession, the company has made
significant progress in this sector, with sales in the year increasing by 62.7%
to GBP2.05m (2008: GBP1.26m). A key success was securing a contract with Hilton
International to supply tufted carpets for guest bedrooms to all the Hilton
brands in the UK and Ireland.
Export sales in the period, including inter-group sales to Ireland, were 11.4%
of total sales and valued at GBP2.90m against GBP3.51m in the previous year.
Victoria did, however, continue to invest in this area of its business during
the period under review, as it fits with the Group's medium to long-term
strategy of targeting new and existing geographies in the contract sector.
Victoria is also developing specific products aimed at particular international
markets. This, coupled with the current low value of Sterling against many major
currencies, should make Victoria's products even more attractive in overseas
markets.
Operationally, in its manufacturing of both carpet yarns and carpets, Victoria's
production capacity during the year has been subject to some under utilisation.
However, the company moved relatively early to restructure the plant and labour
force to meet the short-term market demands, whilst still preserving the ability
to expand quickly as and when markets start to recover. Similarly, a continued
tight control was exercised over all overheads and material costs throughout the
year.
The introduction of new technology in the form of thermal splicing in the UK's
yarn spinning division in Q4 is already delivering carpet yarns of a higher
quality to Victoria's tufting division. This is expected to significantly
improve tufted carpet productivity and reduce the costs of manufacturing tufted
carpets.
During the year, Victoria's earlier investment in its own distribution fleet
enabled the business to extend its contract to distribute carpeting throughout
the UK for the Greendale Carpet Group, one of the UK's foremost independent
retail buying groups, for a further six years. The division also continues under
a five year agreement to warehouse, cut and distribute carpets on behalf of the
John Lewis Partnership.
continued...
-6-
Whilst Victoria's vertically integrated model, with its own yarn spinning,
carpet manufacturing plants and distribution fleet brings an additional element
of fixed cost, it does provide security of supply and opportunities to grow the
business in a profitable manner.
The Board believes that the actions indicated above demonstrate the Management's
proactive stance in steering the business through any near term market
weaknesses.
Ireland
The state of the Irish economy has had a major impact on the Group's two Irish
businesses and, as a result, the Group has not seen the growth from Ireland that
it might otherwise have expected. Yet, against this back-drop, both of the
Group's businesses in Ireland traded profitably.
The rapidly deteriorating market and economic conditions saw the division making
a small loss in H2 after some non-recurring costs. Yet against this backdrop,
both of the Group's businesses in Ireland traded profitably for the year as a
whole.
Irish revenue, which represented 9.6% of overall Group revenue in Sterling
terms, fell by 2.1% to GBP5.95m (2008: GBP6.08m). In local currency terms,
revenue declined by 16.4%. This is a remarkable achievement in a domestic market
estimated to be down by over 30%.
Operating profit decreased by 63.0% from GBP0.39m to GBP0.14m whilst profit
before tax was down 64.4% from GBP0.35m to GBP0.13m, reflecting the difficult
market conditions.
Reviewing the results of the two Irish businesses individually:
Munster Carpets, who are almost exclusively selling to the contract
floor-covering market, saw sales in local currency terms down by 16.9%, with
sales to its main customer base compromising the financial institutions and
government sectors stalling badly. Price competition was also a factor during
the period, as competitors fought keenly for a rapidly shrinking market. Despite
this, Munster remained profitable throughout the year, it has also continued to
bring new products to the market and to seek out segments of the market that are
less likely to be affected by the recession.
Navan Carpets, which is a significant brand in the Irish residential carpet
market, has the ability to react quickly to shifts in market sentiment.
Therefore, Navan managed to limit the decline in its sales to 16.2% compared to
the prior year. Improved 'point-of-sale' display units and patterning were fed
into the market during the year and this, coupled with strong promotional
activity, helped Navan in off-setting the worst of the market decline.
The management team in Ireland was also significantly strengthened during the
year and the Group are pleased to welcome Janet Train, who joined in November
2008, as General Manager. She is working with Sean Kelly, the Irish Managing
Director, in steering the companies through the currently challenging economic
times.
Australia
The story of Australia during the year under review is very much a year of
contrasting halves. The first half was broadly in-line with expectations, as the
Australian commodity driven economy proved resilient to the global slowdown
evident in other parts of the world. However, the second half was impacted by a
significant decline in consumer confidence and a slowdown in discretionary
spending, particularly on big ticket items such as carpets.
continued...
-7-
The retail residential carpet market is estimated to have declined by at least
15% year on year. Despite this, Victoria's revenue was up in local currency
terms by 5.5% and in Sterling terms, up by 11.9% to GBP31.88m (2008: GBP28.48m),
assisted by a strong Australian dollar.
In a weakening and highly competitive market, the company has been able to
maintain market share but at the expense of margin. Aggressive competitor
pricing and a diminishing demand for wool products had the combined effect of
reducing operating profit from GBP3.05m to GBP2.26m, a decline of 26.0%
year-on-year. Profit before tax was also down by 33.9% to GBP1.84m
(2008:GBP2.79m).
During the year, planned major capital expenditure projects were completed on
time and within budget. The expansion of tufted carpet manufacturing at
Dandenong saw four new tufting machines installed between June and November
2008. These machines provide sophisticated design and patterning capabilities,
in addition to a general increase in production capacity. New products aimed at
both the residential and contract commercial markets have been developed for
release during this new financial year and this should enable the company to
further differentiate itself from its competition and begin to restore its
margins.
The demand for use of synthetic yarns in carpets has continued to grow in the
Australian market and has been an important factor in the company's continued
growth.
Other capital expenditure projects completed during the last quarter of the
financial year under review will provide future economic and environmental
benefits. The commissioning of a water recycling plant in the dye house at the
Bendigo spinning mill will save an estimated 17 million litres of water usage
per annum and a yarn stripping/ recycling facility established at the Dandenong
carpet tufting plant will divert approximately 60 tonnes of recyclable materials
away from landfill.
With the new equipment in place, new products in the market, an experienced
management team and the on-going support of the major retail buying groups in
both Australia and New Zealand, the business is very well placed to take
advantage of any market improvement or opportunity that may occur.
Canada
Whilst Colin Campbell, the Group's Canadian Associate business, has a diverse
product portfolio and operates in the very high-end decorative supply showroom,
distribution and contract commercial markets in Western Canada and the United
States, the magnitude of the global recession impacted this business too. The
building projects in Vancouver for the 2010 Winter Olympics are now almost over
and the financial crisis has seen a curtailment to the high rise condominium
developments that have fuelled the business in this region.
Revenue declined by 8.3% to C$ 9.31m (2008: C$10.15m) and operating profit
reduced by 56.3% to C$0.38m (2008: C$0.88m).
+---------------------------------------------------------------+----------------+------------------------+
| Associate company | Underlying operating profit |
+---------------------------------------------------------------+-----------------------------------------+
| | 2009 | 2008 |
+---------------------------------------------------------------+----------------+------------------------+
| | C$000 | C$000 |
| | | |
+---------------------------------------------------------------+----------------+------------------------+
| Profit from operations per financial statements | 9 | 514 |
+---------------------------------------------------------------+----------------+------------------------+
| Interest | 24 | 13 |
+---------------------------------------------------------------+----------------+------------------------+
| Related party management charges | 350 | 350 |
+---------------------------------------------------------------+----------------+------------------------+
| Underlying operating profit | 383 | 877 |
+---------------------------------------------------------------+----------------+------------------------+
continued...
-8-
The success of Colin Campbell's move into the US market with its environmentally
friendly range of carpets branded Natures Carpets has been hampered by the
recession in the USA. However, sampling has been placed across the USA and a
team of sales agents are now actively promoting the products. The Group is still
confident that the potential of Natures Carpets will be realised, particularly
when the market starts to show the first signs of recovery.
At the end of May 2009, June Sookaim, the Company Secretary and General Manager
of Colin Campbell retired after 23 years of service to the company. June has
been a great asset to the business and the Directors would like to record their
thanks to her for her stewardship and to wish her every happiness in her
retirement. The Group would also like to formally welcome Chris Dragan, who has
been appointed Vice President Finance and General Manager of the Colin Campbell
business.
The markets in which Colin Campbell operates are in the short-term likely to
remain depressed, with trading expected to remain challenging throughout the
year. However, the Group is confident that this business is well placed to fully
exploit the recovery when this happens.
Group outlook
The first-half of the Group's financial year is seasonally the weaker of the two
halves and, there is no expectation of any market improvement. This, coupled
with some known and planned further restructuring costs continuing in the new
financial year, is likely to see the first-half remain challenging.
The Group has many strengths operating in its favour including:
* Strong, experienced and autonomous management teams at the helm of each business
which are highly motivated to deliver the best possible result from the
prevailing market conditions and,
* the considerable investment the Group has made in plant, equipment, products and
marketing in recent years, all of which in these uncertain times support the
business enabling it to exploit both current and future business opportunities.
The Group remains confident that it has the products, people and financial
strength in place to go a long way in achieving its targeted objectives this
year and to make further progress in the medium term to grow the Group and to
continue to deliver shareholder value.
Group strategy and objectives
The Group's strategy of positioning itself as both a vertically integrated
manufacturer and distributor of floor-coverings, operating in the mid to high
end of the sector and in carefully targeted international markets, has
undoubtedly enabled it to remain profitable and cash generative whilst
maintaining a strong balance sheet.
No doubt, some of the markets in which the Group operates will in the short-term
remain challenging but the Directors believe that the Group is:
* Well invested with "state of the art" plant and equipment.
* Supported by highly motivated, strong and experienced managers in all of its
businesses, capable of steering the business through whatever conditions the
market presents.
continued...
-9-
The Group's long-term strategy remains based on:
* Focusing its activities in the industry sector it knows and where it has premium
knowledge, whilst at the same time, looking to establish and develop market
leading positions in new chosen business segments.
* Manufacturing and delivering design-led innovative products to its retail
customers which meet the demands of the consumer.
* Providing outstanding levels of customer service, including attaining the
highest delivery and quality standards that both Victoria as a business, and its
customers require.
* Achieving 'best in class' manufacturing standards
Key performance indicators (KPI's)
The Board of Victoria PLC ('Victoria' or the 'business' or 'Company') and the
Divisional Management boards monitor a range of financial and non-financial
performance indicators on a monthly basis so as to measure performance against
expected targets. There is some degree of variability in the non-financial KPI's
monitored in each division but, generally, they are principally focused on the
level of customer satisfaction, new product development, and retention &
development of key employees.
The KPI's monitored by the Group Board are set out in the table below. Clearly,
the Board recognises that due to the weakness in markets overall, the Group has
not been able to deliver an increase in KPI's during the year under review.
+--------------------------------------+--------------------------------------+
| KPI | Performance |
| | |
+--------------------------------------+--------------------------------------+
| Operating margin | 2008: 6.8% |
+--------------------------------------+--------------------------------------+
| | 2009: 3.6% |
+--------------------------------------+--------------------------------------+
| Return on operating assets (ROA) | 2008: 10.6% |
+--------------------------------------+--------------------------------------+
| | 2009: 5.1% |
+--------------------------------------+--------------------------------------+
| Earnings per share (basic adjusted) | 2008: 36.5p |
+--------------------------------------+--------------------------------------+
| | 2009: 15.0p |
+--------------------------------------+--------------------------------------+
Operating margin is calculated as total operating profit divided by revenue.
This is used to assess the underlying trading performance of the Group.
Return on operating assets ('ROA') is calculated as operating profit (including
share of its Associate company) divided by the operating assets employed.The
target ROA for the Group is 10%. ROA is used to measure the effectiveness of
utilising the assets to deliver profits to provide a return for our
shareholders.
Adjusted earnings per share is calculated as profit for the period from
continuing operations (as adjusted to remove the effect of non-recurring items),
divided by the weighted average number of ordinary shares in issue for the
period under review. This is used to assess the underlying financial performance
of the Group as a whole.
Revenue, gross margin and operating profit
The deterioration in trading conditions across the Group in the second half of
the year led to a reduction in operating margin for the year to 3.6% (2008:
6.8%).
continued...
-10-
Group revenue has grown by 0.7% to GBP62.15m (2008: GBP61.70m). In local
currencies, Australia achieved revenue growth of 5.5%, however, revenue declined
in the UK and Ireland by 10.4% and 16.4% respectively.
Approximately 61% of Group revenue was generated by overseas subsidiaries in the
year, 51% of which was achieved by the Australian division. In 2009, the net
translation impact of currency changes compared to 2008 was to increase revenue
by GBP2.70m, principally from the strengthening of the Australian dollar over
the period.
Trading performance in the UK and Ireland has been adversely impacted by the
weakening of activity in their respective housing markets and the general
economic down-turn. As stated in last year's Report, the Group has sought to
leverage its brand and operational capabilities by entering into the UK and
overseas contract floor-covering market for the first time. This has enabled the
UK in part to mitigate the down-turn felt in the retail markets by widening the
channels to alternate markets.
The overall gross margin for the Group declined to 28.2% compared to last year
(2008: 29.7%). This reduction is principally due to lower margins in Australia,
impacted by pricing pressure from competitors. Central operating costs were
in-line with the prior year at GBP0.58m.
Group operating profit for the year was GBP2.23m, 46.9% below last year (2008:
GBP4.19m). Underlying operating profit declined in the UK by 69.4%, in Ireland
by 63.0% and in Australia by 26.0%.
Revenue and underlying operating profit are discussed in more detail on a
divisional basis in 'Results for 2009 financial year' earlier in this section.
Finance costs
Finance costs were GBP0.77m (2008: GBP0.76m). The benefits from lower average
base rates in the year were offset by increased borrowings, driven by planned
significant investment in new equipment in Australia during the period (refer to
"Capital Expenditure" below).
Interest cover remains at a satisfactory level, with EBITDA covering interest by
6.0 times (2008: 8.6 times).
Profit before taxation
Group profit before taxation for the year decreased by 58.3% to GBP1.46m (2008:
GBP3.51m).
Taxation
The total tax charge for the period was GBP1.07m (2008: GBP0.97m), of which
current tax represented a charge of GBP0.57m (2008: GBP1.05m) and deferred tax
was a charge of GBP0.50m (2008: a credit of GBP0.08m). The deferred tax value in
the current period includes an exceptional charge of GBP0.65m in relation to the
phased withdrawal of Industrial Buildings Allowances in the UK
The underlying effective rate of Corporation tax, excluding the exceptional
deferred tax charges, was 28.7% (2008: 27.7%).
The increase in the underlying effective rate of corporation tax reflects the
increased proportion of profit before tax being derived from Australia, which
has a higher rate of corporate tax at 30% (UK 28%).
continued...
-11-
Earnings per share ('EPS')
Basic earnings per share, reflecting the exceptional deferred tax charge
referred to above under "Taxation", was 5.60p (2008: 36.54p), however, adjusted
basic earnings per share (before non-recurring items) was 15.01p (2008: 36.54p).
The diluted adjusted earnings per share were 13.97p (2008: 36.54p). This
calculation factors in dilutive potential ordinary shares arising from the
introduction of the Long-Term Incentive Plan (LTIP) during the financial year.
Dividends
The Group re-introduced an interim dividend of 4.0p per share which was paid in
December 2008. A final dividend of 4.0p per share is proposed, making a total
dividend of 8.0p per share for the year (2008: 14.0p). The dividend yield is
6.7% (2008: 5.6%).
The value of the interim dividend was GBP0.28m and the value of the proposed
final dividend is also GBP0.28m. (Total: GBP0.56m). The value of the dividend
paid in July 2008, in respect of the year ended 29 March 2008, was GBP0.97m.
Capital expenditure
The value of property, plant and equipment increased by GBP1.56m to GBP26.43m
(2008: GBP24.87m), of which currency movements accounted for GBP0.52m of the
increase.
Capital expenditure in the year was GBP3.48m which, at average exchange rates,
was 65.7% higher than 2008 (GBP2.10m) and represented 146% of depreciation
(2008: 91%).
The majority of expenditure relates to plant and machinery and represents
GBP3.22m of additions (2008: GBP1.77m). This investment was primarily in four
"state-of-the-art" tufting machines at the carpet manufacturing plant in
Australia (GBP2.84m of expenditure in the current financial year).
Disposals during the year totalled GBP0.45m (2008: GBP0.25m).
Net assets
The Group's overall net asset value at the financial year-end (4 April 2009)
increased by GBP0.01m to GBP32.57m (2008: GBP32.56m). Non-current assets
increased by GBP1.54m to GBP28.77m (2008: GBP27.23m) with the principle movement
being in property, plant and equipment (see 'Capital expenditure').
The value of inventories rose in the year by GBP1.47m to GBP19.63m of which
currency movements accounted for GBP0.49m of the total. The increase also
reflected the phasing of new product launches which predominated in the second
half of the year.
Trade and other receivables decreased by GBP0.35m to GBP9.18m, with debtor days
reducing year-on-year from 53 days to 51 days. The Group has a wide portfolio of
customers, with no individual customer accounting for more than 25% of any
division's revenue. Trade and other payables have fallen by GBP1.09m to
GBP8.57m. Current tax liabilities in the Balance sheet have reduced by GBP0.59m
to GBP0.78m (2008: GBP1.37m).
The movement in net debt is discussed below (see 'Cash flow and net debt').
continued...
-12-
Cash flow and net debt
Net cash inflow from operating activities fell by GBP4.53m to GBP0.89m (2008:
GBP5.43m), primarily due to lower operating profits (GBP1.97m) and increased
investment in net working capital (investment of GBP2.33m in 2009 compared to
GBP0.50m in 2008). The main increase in working capital is in inventory (refer
to "net assets" above).
Net cash invested was GBP3.38m (2008: GBP1.99m) which reflected the additions to
plant and machinery (refer to "Capital expenditure" above).
Financing activity saw a net inflow of cash of GBP1.32m compared to a net
outflow of cash in 2008 of GBP2.38m. Dividends paid increased by GBP0.38m to
GBP1.25m (2008: GBP0.87m).
The Group net cash outflow was GBP1.16m, compared to a net cash inflow of
GBP1.06m in 2008. Cash and cash equivalent borrowings increased to GBP3.79m
(2008: GBP2.63m).
In the year, net debt increased by GBP3.83m to GBP11.43m (2008: GBP7.60m). The
ratio of net debt to EBITDA is 2.46 times (2008: 1.15 times).
Hedging
The Group manages interest rate exposures in the UK through the use of
derivative financial instruments and currently has one interest rate swap
covering GBP2.0m maturing in July 2009. The Group has taken out a new GBP2.0m
interest rate swap, commencing July 2009 for a two year period to July 2011.
The business regularly reviews its currency exposure in respect to trading
operations involving the export sale of goods or import of raw materials or
capital equipment. The Group may utilise forward currency contracts to manage
any currency exposures where it is considered that currency movements may be
volatile and the amounts involved significant.
The principle currency exposure of the Group relates to the investment in its
Australian subsidiary. The Group maintains a relatively high proportion of its
borrowings in Australian dollars which acts as a natural hedge against the
investment exposure.
Future funding
The net gearing of the Group has increased to 26.0% (2008: 18.9%), but remains
at a relatively low level.
The Group's UK banking facilities were renewed in September 2008 and the
Australian facilities were renewed in October 2008. The current facilities
across the Group provide sufficient capacity in Australian Dollars, Sterling and
Euros to cover all anticipated capital expenditure and working capital
requirements in the year ahead.
Going concern
The consolidated financial statements have been prepared on a going concern
basis. The Group's business activities, together with the factors likely to
affect its future development, performance and position, are set out in this
Business review. The financial position of the Group is described in this
financial review.
continued...
-13-
Having reviewed the Group's budgets and projections, and taking account of
reasonable possible changes in trading performance, the Directors believe they
have reasonable grounds for stating that the Group has adequate resources to
continue in operational existence for the foreseeable future. The Group will
open its usual annual renewal negotiations with its UK bankers in due course.
The Group has already held discussions with all its bankers about its future
borrowing needs and no matters have been drawn to its attention to suggest that
renewal may not be forthcoming on acceptable terms.
The Directors are of the view that the Group is well placed to manage its
business risks despite the current challenging economic and market conditions.
Accordingly, the Directors continue to adopt the going concern basis in
preparing the Annual Report and Accounts.
Accounting standards
The financial statements have been produced in accordance with International
Financial Reporting Standards (IFRS), as endorsed and adopted for use in the EU.
There have been no changes to IFRS this year that have a material impact on the
Group's results. There have been no changes in the accounting policies of the
Group and its subsidiaries this year.
Summary
The financial year under review was a challenging year for the Group; however,
it finished with gearing at a manageable level, a healthy balance sheet and all
the divisions recording a profit for the year as a whole. The Group's actions in
addressing the near term market weakness by ensuring it has a lean, vertically
integrated supply chain, delivering excellent product through widening channels
to market, combined with an experienced management team, enables the Board to be
confident that it can manage the near term market weakness and as markets
improve return the business to targeting long-term growth.
Alan R Bullock
Group Managing Director
Ian Davies
Group Finance Director
-14-
Victoria PLC
Consolidated Income Statement
For the 53 weeks ended 4 April 2009
+--------------------------+----------+--------+--------------+---------------+
| | | 53 weeks | 52 weeks |
| | | ended | ended |
| | | 4 April 2009 | 29 March 2008 |
+-------------------------------------+--------+--------------+---------------+
| | Notes | GBP000 | GBP000 |
+-------------------------------------+--------+--------------+---------------+
| Continuing operations | | | |
+-------------------------------------+--------+--------------+---------------+
| Revenue | 1 | 62,150 | 61,701 |
+-------------------------------------+--------+--------------+---------------+
| | | | |
+-------------------------------------+--------+--------------+---------------+
| Cost of sales | | (44,638) | (43,392) |
+-------------------------------------+--------+--------------+---------------+
| | | | |
+-------------------------------------+--------+--------------+---------------+
| Gross Profit | | 17,512 | 18,309 |
+-------------------------------------+--------+--------------+---------------+
| | | | |
+-------------------------------------+--------+--------------+---------------+
| Distribution costs | | (12,313) | (11,186) |
+-------------------------------------+--------+--------------+---------------+
| | | | |
+-------------------------------------+--------+--------------+---------------+
| Administrative expenses | | (3,604) | (3,757) |
+-------------------------------------+--------+--------------+---------------+
| | | | |
+-------------------------------------+--------+--------------+---------------+
| Other operating income | | 633 | 828 |
+-------------------------------------+--------+--------------+---------------+
| | | | |
+-------------------------------------+--------+--------------+---------------+
| Operating Profit | 1 | 2,228 | 4,194 |
+-------------------------------------+--------+--------------+---------------+
| | | | |
+-------------------------------------+--------+--------------+---------------+
| Share of results of associated | | 2 | 78 |
| company | | | |
+-------------------------------------+--------+--------------+---------------+
| | | | |
+-------------------------------------+--------+--------------+---------------+
| Finance costs | | (768) | (763) |
+-------------------------------------+--------+--------------+---------------+
| | | | |
+-------------------------------------+--------+--------------+---------------+
| Profit before tax | 1 | 1,462 | 3,509 |
+-------------------------------------+--------+--------------+---------------+
| | | | |
+-------------------------------------+--------+--------------+---------------+
| Taxation | | (1,073) | (972) |
+-------------------------------------+--------+--------------+---------------+
| | | | |
+-------------------------------------+--------+--------------+---------------+
| Profit for the period | | 389 | 2,537 |
+-------------------------------------+--------+--------------+---------------+
| | | | |
+-------------------------------------+--------+--------------+---------------+
| | | | |
+-------------------------------------+--------+--------------+---------------+
| Attributable to: | | | |
+-------------------------------------+--------+--------------+---------------+
| Equity holders of the parent | | 389 | 2,537 |
+-------------------------------------+--------+--------------+---------------+
| | | | |
+-------------------------------------+--------+--------------+---------------+
| Earnings per share - | basic | 2 | 5.60 | 36.54 |
| pence | | | | |
+--------------------------+----------+--------+--------------+---------------+
| | | | |
+-------------------------------------+--------+--------------+---------------+
| | diluted | 2 | 5.22 | 36.54 |
+--------------------------+----------+--------+--------------+---------------+
-15-
Victoria PLC
Consolidated Statement of Recognised Income and Expense
For the 53 weeks ended 4 April 2009
+---------------------------------------------------+----------------+---------------+
| | 53 weeks | 52 weeks |
| | ended | ended |
| | 4 April 2009 | 29 March 2008 |
+ + + +
| | | | |
+ + + +---------------------------------------------------+
| | | | |
+---------------------------------------------------+----------------+---------------+---------------------------------------------------+
| | GBP000 | GBP000 |
+---------------------------------------------------+----------------+---------------+
| Exchange differences on translation of foreign | 864 | 1,911 |
| operations | | |
+---------------------------------------------------+----------------+---------------+
| Net income recognised directly in equity | 864 | 1,911 |
+---------------------------------------------------+----------------+---------------+
| Profit for the period | 389 | 2,537 |
+---------------------------------------------------+----------------+---------------+
| Total recognised income for the period | 1,253 | 4,448 |
+---------------------------------------------------+----------------+---------------+
| Attributable to | | |
+---------------------------------------------------+----------------+---------------+
| Equity holders of the parent | 1,253 | 4,448 |
+---------------------------------------------------+----------------+---------------+
-16-
Victoria PLC
Balance Sheets
As at 4 April 2009
+--------------------------------+--------------+--------------+--------------+---------------+
| | Group | Company |
+--------------------------------+-----------------------------+------------------------------+
| | 4 April 2009 | 29 March | 4 April 2009 | 29 March 2008 |
| | | 2008 | | |
+--------------------------------+--------------+--------------+--------------+---------------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+--------------------------------+--------------+--------------+--------------+---------------+
| Non-current assets | | | | |
+--------------------------------+--------------+--------------+--------------+---------------+
| Goodwill | 65 | 65 | ---- | ----- |
+--------------------------------+--------------+--------------+--------------+---------------+
| Other intangible assets | 464 | 447 | ---- | ----- |
+--------------------------------+--------------+--------------+--------------+---------------+
| Property, plant and equipment | 26,430 | 24,866 | 5,216 | 5,283 |
+--------------------------------+--------------+--------------+--------------+---------------+
| Investment property | 180 | 180 | 180 | 180 |
+--------------------------------+--------------+--------------+--------------+---------------+
| Investment in subsidiary | ---- | ----- | 3,321 | 3,321 |
| undertakings | | | | |
+--------------------------------+--------------+--------------+--------------+---------------+
| Investment in associated | 560 | 541 | 56 | 56 |
| company | | | | |
+--------------------------------+--------------+--------------+--------------+---------------+
| Deferred tax asset | 1,067 | 1,129 | 21 | ----- |
+--------------------------------+--------------+--------------+--------------+---------------+
| Total non-current assets | 28,766 | 27,228 | 8,794 | 8,840 |
+--------------------------------+--------------+--------------+--------------+---------------+
| Current assets | | | | |
+--------------------------------+--------------+--------------+--------------+---------------+
| Inventories | 19,630 | 18,162 | ----- | ----- |
+--------------------------------+--------------+--------------+--------------+---------------+
| Trade and other receivables | 9,175 | 9,521 | 5,042 | 5,198 |
+--------------------------------+--------------+--------------+--------------+---------------+
| Cash at bank and in hand | 259 | 1,260 | ----- | ----- |
+--------------------------------+--------------+--------------+--------------+---------------+
| Total current assets | 29,064 | 28,943 | 5,042 | 5,198 |
+--------------------------------+--------------+--------------+--------------+---------------+
| Total assets | 57,830 | 56,171 | 13,836 | 14,038 |
+--------------------------------+--------------+--------------+--------------+---------------+
| Current liabilities | | | | |
+--------------------------------+--------------+--------------+--------------+---------------+
| Trade and other payables | 8,565 | 9,651 | 90 | 119 |
+--------------------------------+--------------+--------------+--------------+---------------+
| Current tax liabilities | 776 | 1,365 | ----- | ----- |
+--------------------------------+--------------+--------------+--------------+---------------+
| Other financial liabilities | 5,507 | 4,635 | 4,055 | 3,672 |
+--------------------------------+--------------+--------------+--------------+---------------+
| Total current liabilities | 14,848 | 15,651 | 4,145 | 3,791 |
+--------------------------------+--------------+--------------+--------------+---------------+
| Non-current liabilities | | | | |
+--------------------------------+--------------+--------------+--------------+---------------+
| Trade and other payables | 1,521 | 1,474 | ----- | ----- |
+--------------------------------+--------------+--------------+--------------+---------------+
| Other financial liabilities | 6,220 | 4,235 | ----- | ----- |
+--------------------------------+--------------+--------------+--------------+---------------+
| Deferred tax liabilities | 2,675 | 2,248 | 1,126 | 656 |
+--------------------------------+--------------+--------------+--------------+---------------+
| Total non-current liabilities | 10,416 | 7,957 | 1,126 | 656 |
+--------------------------------+--------------+--------------+--------------+---------------+
| Total liabilities | 25,264 | 23,608 | 5,271 | 4,447 |
+--------------------------------+--------------+--------------+--------------+---------------+
| Net assets | 32,566 | 32,563 | 8,565 | 9,591 |
+--------------------------------+--------------+--------------+--------------+---------------+
| Equity | | | | |
+--------------------------------+--------------+--------------+--------------+---------------+
| Share capital | 1,736 | 1,736 | 1,736 | 1,736 |
+--------------------------------+--------------+--------------+--------------+---------------+
| Share premium | 829 | 829 | 829 | 829 |
+--------------------------------+--------------+--------------+--------------+---------------+
| Retained earnings | 30,001 | 29,998 | 6,000 | 7,026 |
+--------------------------------+--------------+--------------+--------------+---------------+
| Total equity | 32,566 | 32,563 | 8,565 | 9,591 |
+--------------------------------+--------------+--------------+--------------+---------------+
-17-
Victoria PLC
Cash Flow Statements
For the 53 weeks ended 4 April 2009
+------------------------------------------------+-------+----------+---------+---------+---------+
| | | Group | Company |
+------------------------------------------------+-------+--------------------+-------------------+
| | | 53 weeks | 52 | 53 | 52 |
| | | ended | weeks | weeks | weeks |
| | | 4 April | ended | ended | ended |
| | | 2009 | 29 | 4 April | 29 |
| | | | March | 2009 | March |
| | | | 2008 | | 2008 |
+------------------------------------------------+-------+----------+---------+---------+---------+
| |Notes | GBP000 | GBP000 | GBP000 | GBP000 |
+------------------------------------------------+-------+----------+---------+---------+---------+
| Net cash inflow/(outflow) from operating | 4 | 894 | 5,427 | 860 | (30) |
| activities | | | | | |
+------------------------------------------------+-------+----------+---------+---------+---------+
| Investing activities | | | | | |
+------------------------------------------------+-------+----------+---------+---------+---------+
| Dividends received from associates | | 33 | 54 | 33 | 54 |
+------------------------------------------------+-------+----------+---------+---------+---------+
| Purchases of property, plant and equipment | | (3,484) | (2,102) | | (37) |
+------------------------------------------------+-------+----------+---------+---------+---------+
| Proceeds on disposal of property, plant and | | 76 | 62 | | |
| equipment | | | | | |
+------------------------------------------------+-------+----------+---------+---------+---------+
| Net cash (used in)/ from investing activities | | (3,375) | (1,986) | 33 | 17 |
+------------------------------------------------+-------+----------+---------+---------+---------+
| Financing activities | | | | | |
+------------------------------------------------+-------+----------+---------+---------+---------+
| Increase/(decrease) in long term loans | | 3,233 | (1,392) | | ---- |
+------------------------------------------------+-------+----------+---------+---------+---------+
| Receipts from financing of assets | | 102 | 832 | | ---- |
+------------------------------------------------+-------+----------+---------+---------+---------+
| Repayment of obligations under finance | | (766) | (953) | | ---- |
| leases/HP | | | | | |
+------------------------------------------------+-------+----------+---------+---------+---------+
| Dividends paid | | (1,250) | (868) | (1,250) | (868) |
+------------------------------------------------+-------+----------+---------+---------+---------+
| Net cash from/ (used in) financing activities | | 1,319 | (2,381) | (1,250) | (868) |
+------------------------------------------------+-------+----------+---------+---------+---------+
| Net (decrease)/increase in cash and cash | | (1,162) | 1,060 | (357) | (881) |
| equivalents | | | | | |
+------------------------------------------------+-------+----------+---------+---------+---------+
| | | | | | |
+------------------------------------------------+-------+----------+---------+---------+---------+
| Cash and cash equivalents at beginning of | | (2,629) | (3,693) | (3,663) | (2,782) |
| period | | | | | |
+------------------------------------------------+-------+----------+---------+---------+---------+
| Effect of foreign exchange rate changes | | 6 | 4 | | ---- |
+------------------------------------------------+-------+----------+---------+---------+---------+
| Cash and cash equivalents at end of period | 5 | (3,785) | (2,629) | (4,020) | (3,663) |
+------------------------------------------------+-------+----------+---------+---------+---------+
-18-
Victoria PLC
Notes to the Preliminary Announcement
1.Segmental information
For management purposes, the Group is organised into four operating divisions
according to the geographical areas where they are managed. These divisions form
the basis on which the Group reports its primary segment information, plus the
Canadian associate. The three segments are UK, Ireland, Australia, to which is
added the Canadian associate.
Geographical segment information for revenue, operating profit and a
reconciliation to entity net profit is presented below.
+----------------+---------+-----------+---------+---------+---------+-----------+---------+---------+
| Income | For the 53 weeks ended 4 April 2009 | For the 52 weeks ended 29 March 2008 |
| statement | | |
+----------------+-----------------------------------------+-----------------------------------------+
| | Revenue | Operating | Finance | Profit | Revenue | Operating | Finance | Profit |
| | | profit | costs | before | | profit | costs | before |
| | | | | tax* | | | | tax* |
+----------------+---------+-----------+---------+---------+---------+-----------+---------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+----------------+---------+-----------+---------+---------+---------+-----------+---------+---------+
| UK | 24,326 | 408 | (151) | 257 | 27,149 | 1,335 | (240) | 1,095 |
+----------------+---------+-----------+---------+---------+---------+-----------+---------+---------+
| Ireland | 5,949 | 143 | (18) | 125 | 6,075 | 387 | (36) | 351 |
+----------------+---------+-----------+---------+---------+---------+-----------+---------+---------+
| Australia | 31,875 | 2,257 | (415) | 1,842 | 28,477 | 3,051 | (266) | 2,785 |
+----------------+---------+-----------+---------+---------+---------+-----------+---------+---------+
| | 62,150 | 2,808 | (584) | 2,224 | 61,701 | 4,773 | (542) | 4,231 |
+----------------+---------+-----------+---------+---------+---------+-----------+---------+---------+
| Share of | | | | 2 | | | | 78 |
| Canadian | | | | | | | | |
| associate | | | | | | | | |
+----------------+---------+-----------+---------+---------+---------+-----------+---------+---------+
| Unallocated | | (580) | (184) | (764) | | (579) | (221) | (800) |
| corporate | | | | | | | | |
| expenses | | | | | | | | |
+----------------+---------+-----------+---------+---------+---------+-----------+---------+---------+
| Total | 62,150 | 2,228 | (768) | 1,462 | 61,701 | 4,194 | (763) | 3,509 |
| continuing | | | | | | | | |
+----------------+---------+-----------+---------+---------+---------+-----------+---------+---------+
| operations | | | | | | | | |
+----------------+---------+-----------+---------+---------+---------+-----------+---------+---------+
| Tax | | | | (1,073) | | | | (972) |
+----------------+---------+-----------+---------+---------+---------+-----------+---------+---------+
| Profit after | | | | | | | | |
| tax from | | | | | | | | |
+----------------+---------+-----------+---------+---------+---------+-----------+---------+---------+
| continuing | | | | 389 | | | | 2,537 |
| activities | | | | | | | | |
+----------------+---------+-----------+---------+---------+---------+-----------+---------+---------+
* The share of profits of the associated company is shown net of tax as required
by IAS1.
Intersegment sales between the UK and Ireland and Australia were immaterial in
the current and comparative periods.
+---------------------------------------------+------------+-------------+----------+-------------+
| Balance Sheet | As at 4 April 2009 | As at 29 March 2008 |
+---------------------------------------------+--------------------------+------------------------+
| | Segment | Segment | Segment | Segment |
+---------------------------------------------+------------+-------------+----------+-------------+
| | assets | liabilities | assets | liabilities |
+---------------------------------------------+------------+-------------+----------+-------------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------------------------------+------------+-------------+----------+-------------+
| UK | 24,320 | 6,087 | 25,724 | 7,266 |
+---------------------------------------------+------------+-------------+----------+-------------+
| Ireland | 2,285 | 731 | 2,480 | 1,199 |
+---------------------------------------------+------------+-------------+----------+-------------+
| Australia | 30,484 | 13,176 | 27,135 | 10,824 |
+---------------------------------------------+------------+-------------+----------+-------------+
| Investment in associated company | 560 | ---- | 541 | ---- |
+---------------------------------------------+------------+-------------+----------+-------------+
| Unallocated central assets/liabilities | 181 | 5,270 | 291 | 4,319 |
+---------------------------------------------+------------+-------------+----------+-------------+
| | 57,830 | 25,264 | 56,171 | 23,608 |
+---------------------------------------------+------------+-------------+----------+-------------+
The investment in associated company is held directly by the parent entity and
does not relate specifically to any geographic segment.
continued...
-19-
+------------------------------------------------------------+---------------+---------------+
| Other segmental information | 53 weeks | 52 weeks |
| | ended | ended |
| | 4 April 2009 | 29 March 2008 |
+------------------------------------------------------------+---------------+---------------+
| | GBP000 | GBP000 |
+------------------------------------------------------------+---------------+---------------+
| Depreciation and amortisation | | |
+------------------------------------------------------------+---------------+---------------+
| UK | 955 | 1,012 |
+------------------------------------------------------------+---------------+---------------+
| Ireland | 36 | 31 |
+------------------------------------------------------------+---------------+---------------+
| Australia | 1,412 | 1,277 |
+------------------------------------------------------------+---------------+---------------+
| Unallocated central | 8 | 7 |
+------------------------------------------------------------+---------------+---------------+
| | 2,411 | 2,327 |
+------------------------------------------------------------+---------------+---------------+
No other significant non-cash expenses were deducted in measuring segment
results.
+------------------------------------------------------------+---------------+---------------+
| Capital expenditure | | |
+------------------------------------------------------------+---------------+---------------+
| UK | 374 | 904 |
+------------------------------------------------------------+---------------+---------------+
| Ireland | 4 | 1 |
+------------------------------------------------------------+---------------+---------------+
| Australia | 3,106 | 1,160 |
+------------------------------------------------------------+---------------+---------------+
| Unallocated central | ---- | 37 |
+------------------------------------------------------------+---------------+---------------+
| | 3,484 | 2,102 |
+------------------------------------------------------------+---------------+---------------+
Business Segments
No secondary segmental information is reported as the Directors consider that
substantially all of the Group's operations relate to a single activity, that of
the manufacture and sale of carpets.
2.Earnings per share
+------------------------------------------+---------+----------+---------+---------+----------+---------+
| The calculation of the basic, adjusted, and diluted earnings per share is based on the following |
| data: |
+--------------------------------------------------------------------------------------------------------+
| | | | | | | |
+------------------------------------------+---------+----------+---------+---------+----------+---------+
| | Basic | Adjusted | Diluted | Basic | Adjusted | Diluted |
+------------------------------------------+---------+----------+---------+---------+----------+---------+
| | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 |
+------------------------------------------+---------+----------+---------+---------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------+---------+----------+---------+---------+----------+---------+
| Profit attributable to ordinary equity | 389 | 389 | 389 | 2,537 | 2,537 | 2,537 |
| holders of the parent | | | | | | |
| entity | | | | | | |
+------------------------------------------+---------+----------+---------+---------+----------+---------+
| Effect of change in tax law | ---- | 653 | ---- | ---- | ---- | ---- |
+------------------------------------------+---------+----------+---------+---------+----------+---------+
| Earnings for the purpose of basic, | 389 | 1,042 | 389 | 2,537 | 2,537 | 2,537 |
| adjusted and diluted | | | | | | |
| earnings per share | | | | | | |
+------------------------------------------+---------+----------+---------+---------+----------+---------+
continued...
-20-
+---------------------------------------------------------------------+----------+----------+
| Weighted average number of shares |
+-------------------------------------------------------------------------------------------+
| | 2009 | 2008 |
+---------------------------------------------------------------------+----------+----------+
| | Number | Number |
| | of | of |
+---------------------------------------------------------------------+----------+----------+
| | Shares | Shares |
| | ('000) | ('000) |
+---------------------------------------------------------------------+----------+----------+
| Weighted average number of ordinary shares for the purposes of | 6,944 | 6,944 |
| basic earnings per share | | |
+---------------------------------------------------------------------+----------+----------+
| Effect of dilutive potential ordinary shares: | | |
+---------------------------------------------------------------------+----------+----------+
| Long Term Incentive Plan | 513 | ---- |
+---------------------------------------------------------------------+----------+----------+
| Weighted average number of ordinary shares for the purposes of | 7,457 | 6,944 |
| diluted earnings per share | | |
+---------------------------------------------------------------------+----------+----------+
| The Group's earnings per share are as follows: | | |
+---------------------------------------------------------------------+----------+----------+
| | 2009 | 2008 |
+---------------------------------------------------------------------+----------+----------+
| Basic adjusted | 15.01 | 36.54 |
+---------------------------------------------------------------------+----------+----------+
| Diluted adjusted | 13.97 | 36.54 |
+---------------------------------------------------------------------+----------+----------+
| Basic | 5.60 | 36.54 |
+---------------------------------------------------------------------+----------+----------+
| Diluted | 5.22 | 36.54 |
+---------------------------------------------------------------------+----------+----------+
3.Rates of exchange
The results of overseas subsidiary and associated undertakings have been
translated into Sterling at the average exchange rates prevailing during the
periods. The balance sheets are translated at the exchange rates prevailing at
the period ends:
+---------------------------------------------+------------+----------+------------+----------+
| | 2009 | 2008 |
+---------------------------------------------+-----------------------+-----------------------+
| | Average | Year end | Average | Year end |
+---------------------------------------------+------------+----------+------------+----------+
| Australia - A$ | 2.1787 | 2.0879 | 2.3115 | 2.1657 |
+---------------------------------------------+------------+----------+------------+----------+
| Ireland - EUR | 1.2096 | 1.1028 | 1.4170 | 1.2623 |
+---------------------------------------------+------------+----------+------------+----------+
| Canada - C$ | 1.9186 | 1.8288 | 2.0734 | 2.0251 |
+---------------------------------------------+------------+----------+------------+----------+
4.Reconciliation of operating profit to net cash inflow from operating
activities
+----------------------------------------------------+---------+---------+----------+---------+
| | Group | Company |
+----------------------------------------------------+-------------------+--------------------+
| | 2009 | 2008 | 2009 | 2008 |
+----------------------------------------------------+---------+---------+----------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+----------------------------------------------------+---------+---------+----------+---------+
| Operating profit from continuing operations | 2,228 | 4,194 | 922 | 741 |
+----------------------------------------------------+---------+---------+----------+---------+
| Adjustments for: | | | | |
+----------------------------------------------------+---------+---------+----------+---------+
| - Depreciation charges | 2,380 | 2,299 | 67 | 66 |
+----------------------------------------------------+---------+---------+----------+---------+
| - Amortisation of intangible assets | 31 | 28 | | ---- |
+----------------------------------------------------+---------+---------+----------+---------+
| - (Profit)/ loss on disposal of property, plant | (16) | 15 | | ---- |
| and equipment | | | | |
+----------------------------------------------------+---------+---------+----------+---------+
| - Exchange rate difference on consolidation | 336 | 976 | | ---- |
+----------------------------------------------------+---------+---------+----------+---------+
| Operating cash flows before movements in working | 4,959 | 7,512 | 989 | 807 |
| capital | | | | |
+----------------------------------------------------+---------+---------+----------+---------+
| (Increase)/decrease in working capital | (2,331) | (500) | 28 | (634) |
+----------------------------------------------------+---------+---------+----------+---------+
| Cash generated by operations | 2,628 | 7,012 | 1,017 | 173 |
+----------------------------------------------------+---------+---------+----------+---------+
| Interest paid | (742) | (743) | (157) | (203) |
+----------------------------------------------------+---------+---------+----------+---------+
| Income taxes paid | (992) | (842) | | ---- |
+----------------------------------------------------+---------+---------+----------+---------+
| Net cash inflow/ (outflow) from operating | 894 | 5,427 | 860 | (30) |
| activities | | | | |
+----------------------------------------------------+---------+---------+----------+---------+
continued...
-21-
5.Analysis of net debt
+---------------------------------------------+---------+---------+----------+----------+----------+
| | At | Cash | Other | Exchange | At |
| | 29 | flow | non-cash | movement | 4 April |
| | March | | changes | | 2009 |
| | 2008 | | | | |
+---------------------------------------------+---------+---------+----------+----------+----------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------------------------------+---------+---------+----------+----------+----------+
| Cash | 1,260 | (1,046) | | 45 | 259 |
+---------------------------------------------+---------+---------+----------+----------+----------+
| Bank loans payable less than one year and | (3,889) | (116) | | (39) | (4,044) |
| overdrafts | | | | | |
+---------------------------------------------+---------+---------+----------+----------+----------+
| Cash and cash equivalents | (2,629) | (1,162) | | 6 | (3,785) |
+---------------------------------------------+---------+---------+----------+----------+----------+
| Secured commercial bills | | | | | |
+---------------------------------------------+---------+---------+----------+----------+----------+
| - Payable less than one year | ---- | ---- | (766) | ---- | (766) |
+---------------------------------------------+---------+---------+----------+----------+----------+
| - Payable more than one year | (2,078) | (3,233) | 766 | (77) | (4,622) |
+---------------------------------------------+---------+---------+----------+----------+----------+
| Finance leases and hire purchase agreements | | | | | |
+---------------------------------------------+---------+---------+----------+----------+----------+
| - Payable less than one year | (737) | 766 | (685) | (6) | (662) |
+---------------------------------------------+---------+---------+----------+----------+----------+
| - Payable more than one year | (2,157) | (102) | 685 | (24) | (1,598) |
+---------------------------------------------+---------+---------+----------+----------+----------+
| Bank loans payable more than one year | ---- | | | | ---- |
+---------------------------------------------+---------+---------+----------+----------+----------+
| Net debt | (7,601) | (3,731) | | (101) | (11,433) |
+---------------------------------------------+---------+---------+----------+----------+----------+
The Group's policy on Derivatives and Other Financial Instruments is set out in
the Report & Accounts.
6.The results have been extracted from the audited financial statements of the
Group for the 53 weeks ended 4 April 2009.Whilst the financial information
included in this preliminary announcement has been computed in accordance with
International Financial Reporting Standards (IFRSs), this announcement does not
itself contain sufficient information to comply with IFRSs. The Company will
publish full financial statements that comply with IFRSs. These audited
financial statements incorporate an unqualified audit report. The results do not
constitute statutory accounts within the meaning of Section 240 of the Companies
Act 1985. Statutory accounts for the 52 weeks ended 29 March 2008, which
incorporated an unqualified auditor's report, have been filed with the Registrar
of Companies.
The auditors report on these accounts did not contain a statement under section
237 (2) or (3) of the Companies Act 1985.
7. The Report & Accounts will be posted to Shareholders by 1 July 2009.
Further copies will be available from the Company's Registered Office: Worcester
Road, Kidderminster, Worcestershire, DY10 1JR or via the website:
www.victoria.plc.uk.
8.The Annual General Meeting is being held at the Registered Office of the
Company, as above, at 2.00pm on Thursday, 30 July 2009.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UNOKRKVRNAAR
Victoria (LSE:VCP)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Victoria (LSE:VCP)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024
