TIDMVCP
RNS Number : 2651S
Victoria PLC
29 November 2012
29 November 2012
Victoria PLC
('Victoria,' the 'Company,' or the 'Group')
Half-Year Results
for the 26 weeks ended 29 September 2012
Summary:
-- Group Revenue declined 7.8% to GBP35.99m
-- Group loss before tax and exceptional items* of GBP0.07m
-- Net debt increased in the half-year to GBP8.35m
-- Half-Year Dividend of 2.00 pence
-- Challenging economic and tough market conditions throughout
the period for both the Australian and UK businesses
-- Strategy formulated to reverse recent fortunes
-- Proposed move to AIM
* Refer to Note 4 of this announcement.
For more information contact:
Victoria PLC
Geoff Wilding +44 (0) 1562 749 300
Seymour Pierce
Jonathan Wright (Corporate finance)
Tom Sheldon (Corporate finance)
Richard Redmayne (Corporate broking)
Jacqui Briscoe (Corporate broking) +44 (0) 20 7107 8000
MHP
Nick Denton
Vicky Watkins +44 (0) 20 3128 8100
Chairman's Statement
Overview
Victoria is facing some real challenges. The Group is
experiencing strong economic headwinds in each of its major
markets, has a cost structure that is too high for its current
level of business, limited competitive advantages, excessive debt
levels in the UK, surplus production capacity (in a sector with
abundant surplus production capacity), and a considerable
oversupply of stock in the UK.
These issues are reflected in the financial results for the
first half-year:
-- Group revenues declined by 7.8% (6.6% in constant currency
terms) in H1 from GBP39.02m to GBP35.99m
-- Group operating profit before exceptional items fell 94.3% from GBP1.85m to GBP0.11m
-- Group profit before tax and exceptional items decreased from GBP1.72m to a loss of GBP0.07m
-- After exceptional items, the Group recorded a loss before tax
of GBP1.53m, compared with a GBP1.27m profit before tax in the
prior year H1.
-- Net debt increased at the half year to GBP8.35m from the year-end position of GBP7.75m.
Despite these issues, and the consequential poor results, we
should remember that Victoria is well known for producing superb
quality carpets, has an enviable reputation for service, and
employs some talented and committed people. Since our appointment
on 3 October, we have begun to build on these foundations to
address the key issues facing the business.
Our plans for the Group will take time to impact the financial
results and it is our view that, at best, the Group will break even
(before exceptional items) for the full year. Furthermore, in
restructuring the Group, it is likely that exceptional items and
provisions will be incurred in the second half of the current year
that will materially impact the Group's present net asset
value.
We appreciate the possible impact this could have on the share
price of Victoria PLC in the short term; however, it is our view
that the interests of all shareholders are best served by
unequivocally facing up to the realities confronting Victoria and
dealing with them now. Be assured we are totally committed to
creating value for all shareholders.
Half year dividend
We declare an interim dividend of 2.00p per share (2011: 3.50p),
payable on 20 December 2012 to shareholders on the register as at 7
December 2012.
Proposed move to AIM
In the Annual Report and Accounts for the year end 31 March
2012, the Company advised Shareholders of the proposal to seek
shareholder approval to move to AIM. The process of making this
move was suspended earlier in the year by the previous board.
Following our recent appointment, the process has recommenced and a
circular is being sent to shareholders shortly concerning this
proposal.
Sports ground
As referred to in the Company's trading update of 1 October
2012, the Company has agreed to sell its sports ground in
Kidderminster to Wyre Forest District Council for GBP850,000. The
land has an existing use value in the balance sheet of
GBP80,000.
The sale is subject to completion of due diligence and the grant
of outline planning consent for the Council's own proposed leisure
facility. It is expected that a conditional exchange will be
completed before the end of 2012 and proceeds from the sale are
expected to be received early in the next financial year.
Outlook
Trading continues to be difficult in both the UK and Australia
and confidence in the general economic and commercial environment
remains fragile.
Although the remainder of the current financial year will be
challenging, we believe we have adopted an appropriate strategy for
Victoria and look forward to reporting improved results to
shareholders in the future.
Geoff Wilding
Chairman
Condensed Consolidated Income Statement
For the 26 weeks ended 29 September 2012 (unaudited)
26 weeks 26 weeks 52 weeks
ended ended ended
29 Sep 2012 1 Oct 2011 31 Mar 2012
Notes GBP000 GBP000 GBP000
------------------------------------------- ------ -------------- ------------- --------------
Continuing operations
Revenue 3 35,985 39,016 77,126
Cost of sales (26,596) (28,221) (56,787)
Gross profit 9,389 10,795 20,339
Distribution costs (7,197) (6,926) (14,070)
Administrative expenses (3,694) (2,690) (4,730)
Other operating income 147 218 384
Operating (loss)/ profit (1,355) 1,397 1,923
Analysed between:
------------------------------------------- ------ -------------- ------------- --------------
Operating profit before exceptional
items 3 106 1,848 2,583
Exceptional items 4 (1,461) (451) (660)
------------------------------------------- ------ -------------- ------------- --------------
Share of results of associated
company 74 95 85
Finance costs (245) (219) (461)
------------------------------------------- ------
(Loss)/profit before tax 3 (1,526) 1,273 1,547
Taxation 5 413 (471) (461)
------------------------------------------- ------ -------------- ------------- --------------
(Loss)/profit for the period (1,113) 802 1,086
------------------------------------------- ------ -------------- ------------- --------------
Attributable to:
Equity holders of the parent (1,113) 802 1,086
Earnings per
share - pence basic 6 (15.83) 11.55 15.64
diluted 6 (14.77) 10.45 14.12
----------------------------------------- ------ -------------- ------------- --------------
Condensed Consolidated Statement of Comprehensive Income
For the 26 weeks ended 29 September 2012 (unaudited)
26 weeks 26 weeks 52 weeks
ended ended ended
29 Sep 2012 1 Oct 2011 31 Mar 2012
GBP000 GBP000 GBP000
Exchange differences on translation
of foreign operations (212) (952) 72
------------------------------------- ------------- ------------ -------------
Other comprehensive (loss)/income
for the period (212) (952) 72
(Loss)/profit for the period (1,113) 802 1,086
------------------------------------- ------------- ------------
Total comprehensive (loss)/income
for the period (1,325) (150) 1,158
------------------------------------- ------------- ------------ -------------
Attributable to:
Equity holders of the parent (1,325) (150) 1,158
------------------------------------- ------------- ------------ -------------
Condensed Consolidated Balance Sheet
Victoria (LSE:VCP)
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