Trading Update (0961C)
26 Abril 2012 - 3:01AM
UK Regulatory
TIDMVCP
RNS Number : 0961C
Victoria PLC
26 April 2012
26 April 2012
Victoria PLC
Trading Update
Victoria PLC ('Victoria' or 'Company'), a leading international
manufacturer, supplier and distributor of contemporary design-led
carpets, carpet tiles and other floorcoverings, today announces the
following trading update.
Since the release of the Company's last Interim Management
Statement on 6 February 2012, trading conditions in Victoria's two
main market areas of Australasia and the United Kingdom have
remained extremely challenging.
Revenue in Australia was down in the last quarter of the
Company's financial year by 9.6% in local currency and by 2.6% in
Sterling terms. Whilst the softening of trading conditions in
Australasia was seen for the first time in recent years in Q3,
there was a further rapid and significant softening of market
conditions in February and March 2012, as consumers saved more and
reduced spending on discretionary items such as floor
coverings.
Despite the difficult trading conditions, the United Kingdom
business, including the Republic of Ireland, finished with a strong
Q4 in the financial year ended 31 March 2012, with revenues up 12%
in constant currency terms. The insurance replacement market
continued to perform well and there was a good finish to the year
in both export and home contract markets, with robust sales to the
hospitality sector.
The Board anticipatesthat pre-tax profit (pre-exceptional items)
for the year ended 31 March 2012 will be in line with the market
forecasts that were published prior to the sales process in January
2012.
Exceptional non-recurring costs of circa GBP0.7m will be charged
in the 2011/12 financial year, relating to the restructuring of the
Group's Irish businesses and costs associated with both the recent
General Meeting and the formal sales process. Borrowing levels at
the year-end for the Group were below those originally forecast,
but will increase again in the first half of the new financial year
with the build up of inventory and marketing spend to support major
new range launches in both the UK and Australia.
Trading conditions in the UK and Australia are likely to remain
very challenging. The Board believes that the changes in consumer
taste in the Australasian market over the past year, away from wool
carpets towards synthetic pile carpets, may be a permanent
structural change. As a consequence, pre-emptive action has been
taken to restructure the woollen spinning mills in Australia. The
'right-sizing' of the mills will give rise to material
non-recurring costs in the first half of the new financial
year.
Overall, the Board believes that the actions taken will position
the Company well for the future and the business remains well
placed to capitalise on opportunities when economic conditions
improve.
Victoria will announce its preliminary results for the year
ended 31 March 2012 in June 2012.
Enquiries:
Victoria PLC
Alan Bullock, Group Managing Director
Ian Davies, Group Finance Director
Tel: +44 (0)1562 749300
Brunswick Group
Kate Holgate
Mazar Masud
Tel: +44 (0)20 7404 5959
Notes to editors
Victoria PLC
Victoria PLC is a leading international manufacturer, supplier
and distributor of contemporary design-led carpets, carpet tiles
and other floorcoverings. It was originally founded in 1895 from a
small factory weaving tapestry carpets in Victoria Road, Kirkcaldy,
Scotland, and aims to be the leading quality floorcovering brand in
Australasia and the United Kingdom.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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