VCP Victoria Plc

 

TIDMVCP 
 
RNS Number : 5908W 
Victoria PLC 
30 July 2009 
 

Issued by Citigate Dewe Rogerson Ltd, Birmingham 
Date: Thursday, 30 July 2009 
IMMEDIATE RELEASE 
 
 
VICTORIA PLC 
 
 
INTERIM MANAGEMENT STATEMENT 
AND 
ANNUAL GENERAL MEETING 
 
 
 
At the Annual General Meeting of Victoria PLC held today (30 July 2009), 
Chairman, Alexander Anton, provided the following Interim Management Statement 
to shareholders covering the period 5 April to 4 July 2009: 
 
 
"As outlined in my Statement in the Annual Report and Accounts recently 
published, we anticipated that the first-half of the Group's current financial 
year would be challenging with no expectation of any market improvement. 
 
 
The first quarter in what is traditionally the quieter seasonal half-year period 
saw, if anything, a further weakening of trade in the UK and a significant 
further downturn in the Irish market. Trade in Australia remains extremely 
competitive. As a result, the Group's revenues for the first quarter were down 
by 13.8% (on a constant currency basis, revenues were down by 17.1%), and gross 
margins declined from 28.4% to 25.3%. 
 
 
Looking at the performance in each of the geographical regions in which we 
operate: 
 
 
United Kingdom 
 
The first quarter in the UK saw sales revenues fall on a like-for-like basis by 
16.2%; however, gross margins improved as the restructuring implemented in the 
previous year started to benefit the business. 
 
 
The UK operation also saw better utilisation of its yarn spinning capacity as it 
prepared to re-launch its award winning tufted twist pile ranges, the Crown and 
Tudor Twist Collections. It is anticipated that the launch of these two enhanced 
products will significantly improve the Group's UK performance in the second 
half of this financial year. 
 
 
Ireland 
The Irish business has had to contend with a collapse in its local economy, 
which has caused an unprecedented negative impact in the demand for carpets and 
other consumer goods. 
 
 
 
When compared against a particularly strong first quarter performance last year, 
the decline in sales revenues of 59.2% in local currency terms looks fairly 
stark, however, gross margins improved slightly. 
 
 
With there being little likelihood of any short-term improvement in market 
conditions, the Group has moved to restructure its business to bring its cost 
base in-line with the lower level of anticipated sales. 
 
 
Australia 
In Australia, the business saw a continuation of the difficult trading 
conditions experienced in the previous financial year, with sales revenue down 
by 6.9% in local currency terms. Near term price competition in the market and 
under utilisation of its yarn spinning capacity resulted in pressure on gross 
margins. 
 
 
It is anticipated that the introduction of new products and the benefits flowing 
through from the negotiation of better raw material prices will significantly 
assist in improving margins over the rest of this financial year. 
 
 
Canada 
Colin Campbell, an associate business, has also had to contend with weakening 
market conditions, with the Western Canadian economy now experiencing the market 
downturn being seen in other parts of North America. Consequently, sales were 
down by 27.3% in the first quarter. 
 
 
Summary 
 
As anticipated, the Group's first-half year's trading period will be extremely 
challenging and the decline in Q1 revenues has illustrated just how tough the 
markets remain. However, the results are broadly in-line with management 
expectations and market forecasts. 
 
 
There continues to be a real lack of visibility in the markets in which we 
operate, although the Australian economy appears to be starting to show some 
signs of stabilising. 
 
 
The Board remains focused on optimising the full potential of each of its 
businesses and to winning market share. The Group's Balance Sheet remains strong 
and borrowings are declining, resulting in relatively low net gearing. 
 
 
We continue to remain optimistic that we will manage the near term market 
weakness whilst continuing to explore new routes to market that will complement 
and enhance our business in the future. 
 
 
Annual General Meeting 
At today's Annual General Meeting on 30 July 2009), all resolutions were duly 
passed by the shareholders and details of the proxy votes are provided on the 
Group's website www.victoriaplc.com or by request from the Company Secretary. 
 
 
+--------------------------------------------+----------------------------------------+ 
| Enquiries:                                 |                                        | 
+--------------------------------------------+----------------------------------------+ 
| Victoria PLC                               | Citigate Dewe Rogerson                 | 
+--------------------------------------------+----------------------------------------+ 
| Alan Bullock, Group Managing Director      | Fiona Tooley                           | 
+--------------------------------------------+----------------------------------------+ 
| Ian Davies, Group Finance Director         | Mobile: +44 (0) 7785 703523            | 
+--------------------------------------------+----------------------------------------+ 
| Tel: +44 (0) 1562 749300                   | Keith Gabriel                          | 
+--------------------------------------------+----------------------------------------+ 
| www.victoriaplc.com                        | Mobile+ 44(0) 7770 788624              | 
+--------------------------------------------+----------------------------------------+ 
|                                            | Tel: +44 (0) 121 362 4035              | 
+--------------------------------------------+----------------------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IMSBXGDRLUXGGCG 
 

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