Victoria PLC Pre-close Trading Update (5332N)
01 Outubro 2012 - 3:00AM
UK Regulatory
TIDMVCP
RNS Number : 5332N
Victoria PLC
01 October 2012
"International designers, manufacturer & distributor of
innovative floorcoverings"
Date: Monday, 1 October 2012 Immediate Release
VICTORIA PLC
PRE-CLOSE TRADING UPDATE
Victoria PLC ('Group', 'Victoria' or 'Company') reports the
following update on trading for the six months to 29 September 2012
ahead of its Half-yearly results to be announced in mid-November
2012.
TRADING
-- Group Trading
Trading throughout the Group has been satisfactory, particularly
in the light of the prevailing difficult market and economic
conditions in both of the Group's principal operating territories.
Market share has been maintained or increased in poor market
conditions but overall Group sales will be below those in the
equivalent period last year. The Board is anticipating a breakeven
outcome in the first half, after continued investment in new
product initiatives and before exceptional costs.
Careful management of stock and working capital has resulted in
net debt at the end of the first half to be less than budgeted, and
in the UK, the Company has also recently successfully secured new
banking facilities, moving a substantial amount of borrowings from
short term overdraft to fixed longer term facilities which will
expire in 2015. This will provide the Board with the financial
capacity to grow the business pursuant to its strategy.
-- United Kingdom & Ireland
Trading conditions in the UK and Ireland have remained extremely
tough during the first half, with both weak consumer sentiment and
the impact of the Jubilee and Olympics reducing footfall on the
High Street. Despite this, Victoria has continued to gain market
share in the UK with sales significantly ahead of the corresponding
period last year.
As reported in the Interim Management Statement issued on 15
August 2012, the Group's UK business continues to see increased
sales to the John Lewis Partnership, the Insurance Replacement
Market and within both the contract and export markets. In
addition, the Company is seeing sales growth in the Luxury Vinyl
Tile market that the Group entered earlier this year and from other
new carpet product ranges recently introduced. It is anticipated
that these new product sales will help off-set any further market
weakness in the UK & Ireland.
-- Australasia
As previously reported, revenues in Australia in the first
quarter of this financial year were 10.9% below those in the
corresponding period last year as the Australian economy continued
to slow.
In August and September, which are generally considered to be
the start of a strong seasonal run into Christmas summer holiday
period, there has been no sign of an uplift in sales; rather the
market appears to be deteriorating further.
There has been a particular decline in sales of wool and
wool-rich carpets, which has necessitated short-time working at
both of the Group's woollen spinning mills in Australia. The
company is taking steps to mitigate this reduction in the sale of
wool carpet ranges and continues to actively promote wool carpets
with the aim of underpinning production at the Australian spinning
mills.
The sales of the new synthetic pile carpet ranges, marketed
under the Stainmaster(R) Eversoft(TM) brand of solution dyed nylon,
are progressing well despite the prevailing poor market conditions
and is helping the business capture market share.
OUTLOOK
The final quarter of the calendar year is typically the
strongest selling season in both of the Group's core markets.
However, the lack of sales visibility in volatile market conditions
means that it is too early to forecast with any degree of certainty
whether the current poor conditions in the UK and especially in
Australia are going to continue. The Company should be better
placed to advise shareholders more accurately on this at the time
of the Half-yearly announcement.
SPORTS GROUND - KIDDERMINSTER
The Company, having successfully obtained detailed planning
consent earlier this year for its unused sports ground in
Kidderminster, has now agreed a sale to Wyre Forest District
Council for a consideration of GBP850,000. The land has an existing
use value in the balance sheet of GBP80,000. The sale is subject to
legal due diligence and the grant of outline planning consent for
the Council's own proposed leisure facility. It is expected that
the sale will be completed before the end of 2012.
EXCEPTIONAL COSTS
In the first half, the Group has incurred the following
non-recurring costs:
-- Restructuring of the Australian Spinning Mills
The restructuring of the Group's two Australian spinning mills
was completed in the first quarter of the financial year at a cost
of A$1.30m (GBP0.86m), as stated in the 2012 Preliminary results
announced on 26 June.
-- The proposed move to AIM
In the Annual Report and Accounts for the year ended 31 March
2012, the Company advised shareholders of a proposed move to AIM,
subject to shareholder approval. In light of the recent changes to
the Board and the General Meeting to be held on 3 October 2012, the
Board has, as previously advised, decided to suspend the process of
moving to AIM. To date, approximately GBP0.17m of costs have been
incurred in this process.
-- Incentive Plan
Shareholders will be aware that the three former Non-executive
Directors, Geoff Wilding, Alexander Anton and Sir Bryan Nicholson,
were seeking to secure the adoption of an incentive remuneration
plan, the terms of which the independent directors were unable to
state were fair and reasonable to all shareholders. Significant
legal and other professional costs have been charged to the Company
in connection with the creation and review of the proposed
incentive scheme, amounting to approximately GBP0.21m. Certain of
these costs are currently being disputed by the Company.
-- General Meeting - 3 October 2012
The estimated costs incurred in convening the General Meeting to
be held on 3 October 2012 are GBP0.27m.
Enquiries:
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www.victoriaplc.com
Ticker: VCP.L Premium
Listing
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Victoria PLC TooleyStreet Communications Seymour Pierce
Katherine Innes Ker, (Media & IR relations) (Broker to the Company)
Chairman Fiona Tooley Corporate Finance:
Office: +44 (0) 1562 Mobile: + 44 (0) Jonathan Wright or
749300 7785 703523 Tom Sheldon
Tel: +44 (0) 121 Corporate Broking:
Victoria Carpets Ltd 309 0099 Richard Redmayne or
Alan Bullock, Group Jacqui Briscoe
Managing Director Tel: +44 (0) 20 7107
Office: +44 (0) 1562 8000
749300
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This information is provided by RNS
The company news service from the London Stock Exchange
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