TIDMVCP
RNS Number : 2951Q
Victoria PLC
29 August 2014
29 August 2014
Victoria PLC
('Victoria', the 'Company', or the 'Group')
Final Results
for the year ended 29 March 2014 and Notice of AGM
Victoria PLC (AIM: VCP), a manufacturer, supplier and
distributor of design-led carpets and other floorcoverings, is
pleased to announce its full year results for the year ended 29
March 2014.
The Annual Report and Accounts are being posted to shareholders
today and are also available on the Company's website at
www.victoriaplc.com.
Financial Highlights
Year ended Year ended
29 March 30 March
2014 2013
Revenue GBP71.39m GBP70.91m
Operating profit/(loss) before
exceptional items* GBP2.58m GBP(0.50)m
Profit/(loss) before tax and exceptional
items* GBP2.05m GBP(0.96)m
Profit/(loss) before tax * GBP2.28m GBP(3.34)m
Net debt GBP1.48m GBP7.51m
Earnings/(loss) per share
Basic 24.52p (39.56)p
Basic adjusted 27.12p (10.95)p
* from continuing operations
Operational Highlights:
-- Acquisition of Westex seamlessly integrated and significantly
earnings enhancing for the Group
-- The UK achieved like-for-like sales growth of 1.7% to
GBP28.21m (2013: GBP27.73m), excluding the impact of Westex
-- Australian sales were marginally down by 1.1% on the prior
year at A$65.40m, impacted by slower economic growth and the
competitive trading environment
-- Ongoing focus on generating cash, including the sale and
leaseback of certain properties, has significantly reduced the
Group's debt levels at the end of the year
-- New product ranges successfully launched in the period to address evolving market trends
--
Geoff Wilding, Chairman of Victoria PLC commented:
"2014 marked a significant improvement in Victoria's financial
position. Much of the underlying improvement has come from our
relentless day-to-day focus on costs, margins and sales growth.
We were very pleased to acquire Westex, arguably the UK's
premium tufted carpet manufacturer.
We completed the rationalisation of our spinning mills in
Australia, significantly improving our operational efficiencies in
this market.
We are encouraged by the outlook for our business, with the UK
residential property market showing signs of increased consumer
confidence. The Australian market is also showing signs of economic
improvement, which will, in time, translate into consumer
confidence and increased demand for carpet.
With the reshaping of the business that has already occurred,
together with the improving market conditions and other
opportunities that we see, I am optimistic about the Group's
future.
Our mission is to create wealth for our shareholders, rewarding
them for their investment in and support for the Group."
- Ends -
For more information contact:
Victoria PLC
Geoff Wilding
Alexander Anton +44 (0) 207 440 7520
Cantor Fitzgerald Europe (Nominated Adviser)
Rick Thompson, David Foreman (Corporate
finance)
Richard Redmayne (Corporate broking) +44 (0) 20 7894 7000
MHP Communications (Financial PR)
Nick Denton +44 (0) 20 3128 8100
Chairman's Statement
I am pleased to advise shareholders that the financial year for
2014 marked a significant improvement in Victoria's financial
position:
-- Group revenues grew by 0.7% (6.8% in constant currency terms) from GBP70.91m to GBP71.39m
-- Group operating profit before exceptional items from
continuing operations increased from a loss of GBP0.50m to a profit
of GBP2.58m, as a result of continued improvements in like-for-like
group profitability and the acquisition of the Globesign group
('Westex')
-- Group profit before tax and exceptional items from continuing
operations increased from a loss of GBP0.96m to a profit of
GBP2.05m
-- After exceptional items, the Group recorded a profit before
tax from continuing operations of GBP2.28m, compared with a
GBP3.34m loss before tax in the prior year
-- Group debt as at year end was GBP1.48m, compared with
GBP7.51m in 2013, reflecting the successful restructuring of the
Group
Review:
There are a number of factors that have contributed to our
change in fortunes but I would like to highlight a few specific
actions over the period:
-- Much of the underlying improvement has come from a relentless
day-to-day focus on costs, margins, and sales growth. The success
of this is a credit to the Group's employees who have needed to
adjust in a relatively short time to a new culture and I would like
to thank them for their efforts and focus. I would also like to
take this opportunity to sincerely thank our retailers whose loyal
support and business has been vital to our plans.
-- We were very pleased to acquire Westex during 2014. Westex is
arguably the UK's premium tufted carpet manufacturer, and is run by
talented and committed individuals who, I am delighted to say, have
committed to remain at the business for a minimum of five years. In
2014, Westex generated profits of GBP4.53m although the
contribution to Victoria's profit before tax was GBP1.17m,
reflecting the fact that we owned the business for just three
months of the financial year.
-- Our ongoing focus on generating cash has significantly
reduced the Group's debt levels - from GBP7.51m at the end of 2013
to GBP1.48m as at the end of 2014 - even after the payment of
GBP16.00m to the shareholders of Westex.
-- Although Victoria has long owned its factories, it is
difficult to see any genuine competitive advantage in ownership of
the land and buildings. Victoria is a carpet manufacturer, not a
property investor, and the Board has formed the view that the
capital locked up in real estate is generally better employed in
carpet manufacturing and distribution operations. There will be
circumstances where it is worthwhile to retain ownership of the
real estate, but during 2014 we have sold our operational real
estate in Australia and the Company's property at Kidderminster, by
way of sale and lease back.
-- In last year's report to shareholders I outlined the proposed
rationalisation of the Company's spinning mills in Australia to one
site at Bendigo and this consolidation has now been completed.
Costs associated with this move totalled GBP0.78m in 2014 but it
has significantly improved operating efficiencies in Australia,
ensuring we remain competitive.
-- As part of our strategy to dispose of non-core and
underperforming assets we have successfully sold the Canadian
interior decorating retailer, Colin Campbell, realising a small
premium to the carrying value. The business had never generated a
meaningful return to Victoria and it did not have any strategic
value so in 2013 we bought out the other 50% shareholder, which
enabled us to deal freely with the business - a move which resulted
in us being able to achieve a sale.
Post balance sheet date the Board was delighted to deliver on
its commitment to shareholders at the time of its appointment and
be able to pay a special dividend of GBP2.92 per share in July -
bringing the total payment to shareholders since they approved the
Contract for Differences ("CFD") to GBP3.00 per share. This act
also enabled the CFD to be terminated and remove any uncertainty
around this arrangement. 100% of the proceeds of the CFD were
reinvested into Victoria demonstrating my commitment to, and
confidence in, the future of the business.
Dividend
The very large dividend paid in July 2014 has led to the
decision that a final dividend will not be paid this year. However
the Board would like to send a clear signal to shareholders of the
Company's commitment to paying dividends as part of its plan to
create wealth for shareholders and it is intended to recommence
dividends next year.
Board Changes
As announced in May 2014, the Board of Victoria was further
strengthened with the appointment of Terry Danks, the existing
Company Secretary of the Group and Finance Director of Victoria
Carpets Limited.
Outlook
We are encouraged by the improving UK residential property
market. Although new homes are a useful source of revenue, by far
the most important driver of carpet sales is home-owners
redecorating/refurbishing their homes. Consumer confidence and home
sales are the underlying factors for this activity.
After a very difficult couple of years there are also promising
signs of economic improvement in Australia, which will, in time,
translate into consumer confidence and increasing demand for
carpet.
To help shareholders understand the underlying earnings of
Victoria I have set out in the table below a summary of the
operating profits of each component of the Group.
EBIT GBP000's 2012 2013 2014
Existing UK 308 (1,820) 403
--------------------- ----------------------- ------------------------
Westex 3,341 3,698 4,538
--------------------- ----------------------- ------------------------
Australia (A$) 4,786 3,104 2,876
--------------------- ----------------------- ------------------------
Australia (GBP) 3,134 2,027 1,686
--------------------- ----------------------- ------------------------
PLC (859) (705) (682)
--------------------- ----------------------- ------------------------
Total 5,924 3,200 5,945
--------------------- ----------------------- ------------------------
Notes:
1. Westex earnings are for the 12 months ending 28 February of
each year (their former balance sheet date); all other earnings are
for Victoria's financial year
2. All numbers exclude exceptional items
3. Existing UK incorporates Victoria Carpets Limited and Westwood Yarns Limited
Our Mission
I would like to finish this report by highlighting Victoria
PLC's commitment to create wealth for shareholders. It is the
benchmark against which all management and board decisions are
measured. The means by which we do this is by the manufacture and
distribution of some of the finest floor coverings in the UK and
Australia, but the objective is to reward shareholders for their
investment in, and support for, Victoria PLC.
I am pleased to say that over the last 18 months many of the
Group's management have bought shares (most of them for the first
time) on market with their own cash reflecting their belief in
Victoria PLC. Their personal investment ensures they think and act
in the best interests of shareholders because they are
shareholders.
In summary, with the reshaping of the business that has already
occurred, together with the improving market conditions and other
opportunities that we see, I am optimistic about the Group's
future.
Operating and Financial Review
Operational Review
United Kingdom
Whilst the improving UK economic position has been well
documented during this financial period, market conditions remain
highly competitive and consumers remain cautious over spend on high
value items after a sustained period of below inflationary wage
growth.
With the market trend towards less expensive products, Victoria
launched a number of product ranges in the financial period to
reflect this.
The UK achieved like for like sales growth of 1.7% from
GBP27.73m to GBP28.21m, which excludes the impact of the
acquisition of Westex.
The UK underlying operating performance (excluding Westex) has
improved from an operating loss of GBP1.82m in 2013 to an operating
profit of GBP0.40m in 2014. The turnaround in performance is driven
by an improvement in gross margin and a continued focus on reducing
the cost base, including the full year benefit of cost saving
initiatives undertaken in the second half of 2013.
The UK completed a sale and leaseback of the manufacturing
facility in Kidderminster in March 2014, receiving cash of
GBP5.80m.
The acquisition of Westex in December 2013 has contributed sales
of GBP4.83m and an operating profit of GBP1.17m in the period post
acquisition. The annual operating profit of Westex over the past
three years is shown within the Chairman's Statement.
As a result of the above, the UK recorded a profit before tax
and exceptional items of GBP1.57m compared to a loss before tax and
exceptional items of GBP2.03m in 2013.
Australia
The Australian economy continues to be impacted by the slowdown
in the resources sector and a softening in prices as a result of
slowing growth in key markets of China and India. The retail and
building & construction sectors are showing progress whilst
manufacturing and service sectors continue to struggle.
The direction of the Australian Dollar is critical to the health
of the manufacturing sector and to competitiveness in the resources
sector and overall unemployment rates. There has been considerable
volatility in both the Australian Dollar and New Zealand Dollar
during the year and experts are divided over their future
direction.
The continued low interest rate environment has fostered
significant increases in house prices in both Australia and New
Zealand with many major cities showing double digit growth over the
past 12 months. This activity has boosted approval and
commencements in new building construction in 2014, and driven the
turnover and clearance rates of existing properties. Most recent
data indicates that building and property activity levels are now
moderating heading into 2015.
Sales in the period of A$65.40m were below prior year by 1.1%
(A$66.14m), impacted by tough economic conditions and the
competitive trading environment.
Whilst reported operating profit has reduced by A$0.23m to
A$2.88m on lower sales, the like for like operating profit, after
adjusting for property leasing costs during the period was in line
with prior year. Cost saving initiatives across the business also
delivered and contributed to the underlying operating profit,
offsetting additional costs in third party logistics following the
failure of a long term partner.
The exit from and closure of the Castlemaine Mill freed up key
assets to be transferred to the Bendigo Mill, increasing that
plant's capacity and reducing operating costs by year end.
The company completed sale and leasebacks of the manufacturing
facility in Dandenong and spinning mill at Bendigo realising cash
of A$10.50m in the financial year. The sale of the Castlemaine Mill
was completed post year end in May 2014 for A$1.0m.
The company has achieved a significant reduction in working
capital, with inventory reduced by A$4.29m (20.9%).
Canada
As noted in the Chairman's Statement, the Group disposed of its
Canadian operation Colin Campbell at the end of the financial
period. The Canadian operation contributed operating profit of
GBP5k in the period and GBP77k in prior year. The sale of the
business in March 2014 realised a GBP111k profit.
Financial Review
The Group's financial performance for the year end 29 March 2014
is summarised as follows:
2014 2013 %
GBPm GBPm Change
-------------------------------------------- ---------- --------- -------
Revenue 71.39 70.91 0.7%
Operating profit/(loss) before exceptional
items from continuing operations 2.58 (0.50) 618.3%
Finance Costs (0.53) (0.46) 15.2%
Profit/(loss) before tax and exceptional
items from continuing operations 2.05 (0.96) 312.9%
Exceptional items 0.23 (2.38) 109.7%
Profit/(loss) before tax from continuing
operations 2.28 (3.34) 168.3%
Tax (0.67) 0.74 190.8%
Profit/(loss) after tax from continuing
operations 1.61 (2.60) 161.9%
Profit/(loss) from discontinued operations 0.12 (0.18) 163.7%
Profit/(loss) for the period 1.73 (2.78) 162.1%
Net debt 1.48 7.51 -80.3%
Exceptional Items
The exceptional items for the year end 29 March 2014 are
summarised below:
2014 2013
GBPm GBPm
--------------------------------------------- -------- ---------
Profit on sale of properties 3.30 ------
Contract for Differences (1.63) ------
Restructuring of Australia's spinning mills (0.78) (0.87)
Acquisition costs (0.66) ------
Move to AIM ------ (0.23)
Incentive plan ------ (0.23)
General Meeting costs ------ (0.60)
Write off of certain intangible assets ------ (0.44)
0.23 (2.37)
--------------------------------------------- -------- ---------
The Group sold its carpet manufacturing facilities in both
Australia and the UK during the year and the spinning mill in
Bendigo, Australia. These properties are now under operating leases
varying from 10 to 20 year terms. The property sales realised a
profit of GBP3.30m, which is recorded in other operating
income.
The Contract for Differences charge of GBP1.63m represents the
fair value assessment of the contract at the year-end date and
associated professional fees in the period. The fair value
calculation was based on the principles of the contract and the
market capitalisation as at the year end. Also taken into account
were a number of conditions still to be met before the contract
could be exercised. The conditions were eventually satisfied in
July 2014 resulting in the issue of 7,087,730 ordinary shares for
the benefit of Geoffrey Wilding (through Camden Holdings
Limited).
The smaller of the two spinning mills in Australia was closed in
the first half period to meet reduced volume requirements for
woollen yarns as a result of the continuing consumer trend away
from wool to synthetic carpets.
Acquisition costs in the period relate to professional fees
associated with the acquisition of Westex in December 2013.
Taxation
The tax charge in the year was GBP0.67m (2013: tax credit of
GBP0.74m), equivalent to an effective tax rate of 28.0%. The
Group's tax rate is above the prevailing UK standard rate of 23%
impacted by a number of factors including a higher standard rate of
30% in Australia and expenses that are not deductible in
determining taxable profit.
Cash Flow and Debt
2014 2013
GBPm GBPm
---------------------------------------------------- ---------- --------
Operating profit/(loss) from continuing operations
and before exceptional items 2.58 (0.50)
Depreciation and non-cash items 2.55 2.77
Foreign exchange 0.06 0.12
Movement in working capital 4.32 2.12
Operating cash flow (before exceptional
items) 9.51 4.51
---------------------------------------------------- ---------- --------
EBITDA * 5.14 2.33
Operating cash flow conversion % (against
EBITDA*) 185.1% 193.7%
* Earnings before interest, tax, depreciation,
amortisation and exceptional items.
The Group generated significant operating cash flows in the
period (before exceptional items) relative to EBITDA (before
exceptional items), driven by a continued focus on reducing working
capital levels. In particular, underlying inventories levels have
decreased year on year by GBP4.86m after excluding the impact of
the additional inventory on the Group balance sheet following the
acquisition of Westex in the period.
2014 2013
GBPm GBPm
------------------------------------------- ---------- ------------
Operating cash flow (before exceptional
items) 9.51 4.51
------------------------------------------- ---------- ------------
Interest paid (0.53) (0.46)
Corporation tax paid (0.40) (0.51)
Capital Expenditure (0.53) (0.85)
Free cash flow (before exceptional items) 8.05 2.69
------------------------------------------- ---------- ------------
Proceeds on disposal of property,plant
and equipment 11.70 0.10
Acquisition of Westex (12.84) ------
Dividends paid (0.56) (0.63)
Restructuring of Australia's spinning
mills (0.78) (0.87)
Dividends and sales proceeds from Colin
Campbell 0.50 ------
General Meeting, AIM and Incentive Plan
costs ------ (1.06)
Other items (0.04) 0.01
Net cash flow 6.03 0.24
------------------------------------------- ---------- ------------
Opening net debt (7.51) (7.75)
Closing net debt (1.48) (7.51)
------------------------------------------- ---------- ------------
Capital expenditure was relatively modest at GBP0.53m (2013:
GBP0.85m) and significantly below depreciation levels. The Group is
well invested with modern plant and equipment and capital
expenditure requirements are expected to remain below depreciation
levels in the new financial period.
The net cash inflow of GBP11.70m in the period on disposal of
property, plant and equipment principally relates to the sale and
leaseback of the properties noted earlier in this review.
The net cash outflow arising in respect to the acquisition of
Westex was GBP12.84m, comprising an initial cash consideration of
GBP16.00m and GBP0.66m of associated professional fees, partly
offset by GBP3.82m opening cash in Westex.
Net debt levels reduced by GBP6.03m during the financial year to
GBP1.48m (2013: GBP7.51m).
Future funding
The Group's annual renewal of its Australia facilities took
place in November 2013 and there are no problems anticipated in
renewing these facilities on similar terms in November 2014.
The Group's UK facilities comprise a committed 3 year revolving
credit facility expiring in July 2015, a new term loan facility to
finance the Westex acquisition expiring in December 2016 and an
overdraft facility. The facilities are subject to financial
covenants measured against Group results and all lending covenants
were satisfied at all quarterly test dates throughout the year.
There are no problems anticipated in renewing the 3 year revolving
credit facility which expires in less than 12 months from the date
of this report.
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.
Key performance indicators (KPI's)
The KPI's monitored by the Group Board are set out in the table
below for the year ended 29 March 2014.
2014 2013 2012
--------------------------------------------- ---------- ------- ----------
Sales growth (constant currency) 6.8% -7.9% 4.6%
Operating margin (pre exceptional items) 3.6% -0.6% 3.5%
Return on operating assets (pre exceptional
items) 7.1% -0.9% 5.6%
Earnings/(loss) per share (basic adjusted) 27.1p -11.0p 23.7p
3.3
Net debt to EBITDA* 0.3 times times 1.4 times
4.8 12.1
Interest cover (against EBITDA*) 9.7 times times times
--------------------------------------------- ---------- ------- ----------
* Earnings before interest, tax, depreciation, amortisation and
exceptional items.
Principal risks and uncertainties
The principal risks facing the business are set out as
follows:
Competition
The Group companies operate in mature and highly competitive
markets, resulting in pressure on pricing and margins. Management
regularly review competitor activity to devise strategies to
protect the Group's position as far as possible.
Global Economic conditions
The operating and financial performance of the Group is
influenced by economic conditions in the geographic areas it
operates, particularly the UK, Eurozone, Australia and the USA. The
Group remains focussed on driving operational efficiency
improvements, cost reductions and ongoing product development to
adapt to the current market and economic conditions.
Key input prices
Material adverse changes in certain raw material prices, in
particular wool prices, could affect the Group's profitability.
These prices are closely monitored and forward contracts placed to
help manage shorter term volatility.
Geoffrey Wilding
Executive Chairman
Consolidated Income Statement
For the 52 weeks ended 29 March 2014
52 weeks 52 weeks
ended ended
29 March 30 March
2014 2013
Re-stated
Notes GBP000 GBP000
------------------------------------ --------- --------- ------ ---------- ----------
Continuing operations
Revenue 1 71,386 70,909
Cost of sales (50,544) (53,679)
Gross profit 20,842 17,230
Distribution costs (13,804) (14,041)
Administrative
expenses (7,914) (6,230)
Other operating
income 3,688 168
Operating profit/(loss) 2,812 (2,873)
Analysed between:
Operating profit/(loss) before exceptional
items 1 2,581 (498)
Exceptional items 3 231 (2,375)
---------------------------------------------------------- ------ ---------- ----------
.
Finance costs (531) (465)
Profit/(loss) before
tax 1 2,281 (3,338)
Taxation (672) 738
Profit/(loss) for the period from continuing
operations 1,609 (2,600)
Profit/(loss) for the period from
discontinued operations 1 116 (182)
Profit/(loss) for
the period 1,725 (2,782)
---------------------------------------------------------- ------ ---------- ----------
Earnings/(loss)
per share - pence basic 2 24.52 (39.56)
diluted 2 24.52 (39.56)
Earnings/(loss) per share from continuing
operations - pence basic 2 22.87 (36.97)
diluted 2 22.87 (36.97)
-------------------------------------------------------- ------ ---------- ----------
The prior year Consolidated Income Statement was re-stated due
to the sale of Colin Campbell & Sons Limited, which is now
shown separately under discontinued operations.
Consolidated Statement of Comprehensive Income
For the 52 weeks ended 29 March 2014
52 weeks 52 weeks
ended ended
29 March 30 March
2014 2013
GBP000 GBP000
Exchange differences on translation
of foreign operations (5,078) 1,597
------------------------------------------------- ---------- ----------
Amounts which may be subsequently reclassified
to profit or loss (5,078) 1,597
Profit/(loss)
for the period 1,725 (2,782)
------------------------------------------------- ----------
Total comprehensive loss for
the period (3,353) (1,185)
------------------------------------------------- ---------- ----------
Consolidated and Company Balance Sheets
As at 29 March 2014
Group Company
29 March 30 March 29 March 30 March
2014 2013 2014 2013
GBP000 GBP000 GBP000 GBP000
--------------------------------------- --------- --------- --------- ---------
Non-current assets
Goodwill 2,735 ------ ------ ------
Intangible assets 4,953 248 ------ ------
Property, plant and equipment 18,681 23,778 ------ 4,966
Investment property 180 180 180 180
Investment in subsidiary undertakings ------ ------ 27,126 3,322
Deferred tax asset 1,441 1,323 285 ------
---------------------------------------
Total non-current assets 27,990 25,529 27,591 8,468
--------------------------------------- --------- --------- --------- ---------
Current assets
Inventories 21,203 20,866 ------ ------
Trade and other receivables 13,964 11,163 16,177 4,281
Current tax assets ------ 361 ------ ------
Cash at bank and in hand 15,192 1,091 13,151 ------
Assets held for sale 547 389 ------ 56
Total current assets 50,906 33,870 29,328 4,337
---------------------------------------
Total assets 78,896 59,399 56,919 12,805
--------------------------------------- --------- --------- --------- ---------
Current liabilities
Trade and other payables 17,496 9,624 3,128 229
Current tax liabilities 1,162 ------ ------ ------
Other financial liabilities 5,406 7,709 5,267 4,246
---------------------------------------
Total current liabilities 24,064 17,333 8,395 4,475
--------------------------------------- --------- --------- --------- ---------
Non-current liabilities
Trade and other payables 7,716 1,954 6,804 ------
Other financial liabilities 11,267 890 9,733 500
Deferred tax liabilities 1,210 749 ------ 471
Total non-current liabilities 20,193 3,593 16,537 971
--------------------------------------- --------- --------- --------- ---------
Total liabilities 44,257 20,926 24,932 5,446
--------------------------------------- --------- --------- --------- ---------
Net assets 34,639 38,473 31,987 7,359
--------------------------------------- --------- --------- --------- ---------
Equity
Share capital 1,772 1,758 1,772 1,758
Share premium 909 829 909 829
Retained earnings 31,958 35,724 29,306 4,669
Share-based payment reserve ------ 162 ------ 103
Total equity 34,639 38,473 31,987 7,359
--------------------------------------- --------- --------- --------- ---------
Consolidated Statement of Changes in Equity
For the 52 weeks ended 29 March 2014
Share Share Retained Share-based Total
capital premium earnings payment equity
reserve
GBP000 GBP000 GBP000 GBP000 GBP000
At 31 March 2013 1,758 829 35,724 162 38,473
Profit for the period ---- ---- 1,725 ---- 1,725
Other comprehensive loss for
the period ---- ---- (5,078) ---- (5,078)
--------------------------------------- -------- -------- --------- ------------ --------
1,758 829 32,371 162 35,120
Transactions with owners:
Dividends paid ---- ---- (563) ---- (563)
Movement in share-based payment
reserve ---- ---- ---- (12) (12)
Transfer of share-based payment
reserve to retained earnings ---- ---- 150 (150) ----
Issue of share capital in connection
with exercise of share options under
LTIP plan 14 80 ---- ---- 94
At 29 March 2014 1,772 909 31,958 ---- 34,639
--------------------------------------- -------- -------- --------- ------------ --------
At 1 April 2012 1,736 829 37,575 180 40,320
Loss for the period ---- ---- (2,782) ---- (2,782)
Other comprehensive income for
the period ---- ---- 1,597 ---- 1,597
--------------------------------------- -------- -------- --------- ------------ --------
1,736 829 36,390 180 39,135
Transactions with owners:
Dividends paid ---- ---- (627) ---- (627)
Movement in share based payment
reserve ---- ---- ---- (18) (18)
Deferred tax on share option
scheme ---- ---- (39) ---- (39)
Issue of share capital in connection
with exercise of share options under
LTIP plan 22 ---- ---- ---- 22
At 30 March 2013 1,758 829 35,724 162 38,473
--------------------------------------- -------- -------- --------- ------------ --------
Company Statement of Changes in Equity
For the 52 weeks ended 29 March 2014
Share Share Retained Share-based Total
capital premium earnings payment equity
reserve
GBP000 GBP000 GBP000 GBP000 GBP000
At 31 March 2013 1,758 829 4,669 103 7,359
Profit for the period ------ ------ 25,097 ------ 25,097
-------------------------------------- -------- -------- --------- ------------ -------
1,758 829 29,766 103 32,456
Transactions with owners:
Dividends paid ------ ------ (563) ------ (563)
Transfer of share-based payment
reserve to retained earnings ------ ------ 103 (103) ------
Issue of share capital in connection
with exercise of share options
under LTIP plan 14 80 ------ ------ 94
At 29 March 2014 1,772 909 29,306 ------ 31,987
-------------------------------------- -------- -------- --------- ------------ -------
At 1 April 2012 1,736 829 5,802 113 8,480
Loss for the period ------ ------ (467) ------ (467)
-------------------------------------- -------- -------- --------- ------------ -------
1,736 829 5,335 113 8,013
Transactions with owners:
Dividends paid ------ ------ (627) ------ (627)
Movement in share based payment
reserve ------ ------ ------ (10) (10)
Deferred tax on share option
scheme ------ ------ (39) ------ (39)
Issue of share capital in connection
with exercise of share options
under LTIP plan 22 ------ ------ ------ 22
At 30 March 2013 1,758 829 4,669 103 7,359
-------------------------------------- -------- -------- --------- ------------ -------
Consolidated and Company Statements of Cash Flows
For the 52 weeks ended 29 March 2014
Group Company
52 weeks 52 weeks 52 weeks 52 weeks
ended ended ended Ended
29 March 30 March 29 March 30 March
2014 2013 2014 2013
Notes
GBP000 GBP000 GBP000 GBP000
-------------------------------------------- ------ ---------- ---------- ---------- ----------
Net cash inflow/(outflow) from operating
activities 5 7,093 1,611 13,263 (1,049)
-------------------------------------------- ------ ---------- ---------- ---------- ----------
Investing activities
Purchases of property, plant and equipment (531) (850) ----- ----
Proceeds from disposal of Colin Campbell
& Sons Limited 324 ---- 324 ----
Dividend received from Colin Campbell
& Sons Limited 179 ---- 179 ----
Proceeds on disposal of property,
plant and equipment 11,696 96 5,600 8
Acquisition of subsidiary, net of
cash acquired, at Group level (12,176) ---- (16,000) ----
Net cash (used)/generated in investing
activities (508) (754) (9,897) 8
-------------------------------------------- ------ ---------- ---------- ---------- ----------
Financing activities
Increase in long term loans 10,488 500 9,233 500
Issue of share capital 94 ----- 94 -----
Repayment of obligations under finance
leases/HP (14) (327) ----- -----
Dividends paid (563) (627) (563) (627)
Net cash generated/(used) in financing
activities 10,005 (454) 8,764 (127)
-------------------------------------------- ------ ---------- ---------- ---------- ----------
Net increase/(decrease) in cash and
cash equivalents 16,590 403 12,130 (1,168)
Cash and cash equivalents at beginning
of period 6 (6,475) (6,920) (4,246) (3,078)
Effect of foreign exchange rate
changes (190) 42 ----- -----
Cash and cash equivalents at end of
period 6 9,925 (6,475) 7,884 (4,246)
-------------------------------------------- ------ ---------- ---------- ---------- ----------
Notes to the Accounts
1 Segmental information
The Group is organised into two operating divisions, the sale of
floorcovering products in the UK and Australia.
Geographical segment information for revenue, operating
profit/(loss) and a reconciliation to entity net profit/(loss) is
presented below.
Income For the 52 weeks ended For the 52 weeks ended 30
statement 29 March 2014 March 2013
Segmental
Segmental Exceptional Profit operating Exceptional Loss
operating operating Finance before (loss)/ operating Finance before
Revenue profit items costs tax* Revenue profit items costs tax*
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------- -------- ---------- ------------ -------- -------- -------- ---------- ------------ -------- --------
UK 33,047 1,577 - (9) 1,568 27,729 (1,820) (442) (206) (2,468)
Australia 38,339 1,686 1,824 (138) 3,372 43,180 2,027 (1,082) (154) 791
--------------- ------------ -------- -------- ------------ -------- --------
71,386 3,263 1,824 (147) 4,940 70,909 207 (1,524) (360) (1,677)
Unallocated
central
expenses (682) (1,593) (384) (2,659) (705) (851) (105) (1,661)
--------------- -------- ---------- ------------ -------- -------- -------- ---------- ------------ -------- --------
Total
continuing
operations 71,386 2,581 231 (531) 2,281 70,909 (498) (2,375) (465) (3,338)
Tax (672) 738
--------------- -------- ---------- ------------ -------- -------- -------- ---------- ------------ -------- --------
Profit/(loss)
after tax from
continuing
activities 1,609 (2,600)
--------------- -------- ---------- ------------ -------- -------- -------- ---------- ------------ -------- --------
Profit/(loss) from
discontinued
operations* 5 111 116 77 (259) (182)
Profit/(loss)
for the
period 71,386 2,586 342 (531) 1,725 70,909 (421) (2,634) (465) (2,782)
--------------- -------- ---------- ------------ -------- -------- -------- ---------- ------------ -------- --------
* Profit/(loss) from discontinued operations relates to the
Canadian operation Colin Campbell & Sons Limited, which was
sold on 28 March 2014. The result is shown net of tax.
Intersegment sales between the UK and Australia were immaterial
in the current and comparative periods.
Management information is reviewed on a segmental basis to
profit/(loss) before tax.
Balance Sheet As at 29 March As at 30 March
2014 2013
Segment Segment Segment Segment
assets liabilities assets liabilities
GBP000 GBP000 GBP000 GBP000
--------------------- ---------- ------------ ---------- ------------
UK 55,877 24,739 22,203 7,965
Australia 22,000 11,022 36,627 7,912
Assets held
for sale 547 ---- 389 ----
Unallocated central
assets/liabilities 472 8,496 180 5,049
--------------------- ---------- ------------ ---------- ------------
78,896 44,257 59,399 20,926
--------------------- ---------- ------------ ---------- ------------
Assets held for sale relates to the Castlemaine spinning mill in
Australia which was sold in May 2014. The prior year figure relates
to the Canadian operation Colin Campbell & Sons Limited which
was sold on 28 March 2014.
52 weeks 52 weeks
ended ended
29 March 30 March
Other segmental information 2014 2013
GBP000 GBP000
------------------------------- ---------- ----------
Depreciation and amortisation
UK 904 792
Australia 1,650 1,960
------------------------------- ----------
2,554 2,752
------------------------------- ---------- ----------
No other significant non-cash expenses were deducted in
measuring segment results.
52 weeks 52 weeks
ended ended
29 March 30 March
2014 2013
GBP000 GBP000
--------------------- ---------- ----------
Capital expenditure
UK 304 593
Australia 227 257
--------------------- ---------- ----------
531 850
--------------------- ---------- ----------
2 Earnings/(loss) per share
The calculation of the basic, adjusted and diluted earnings/(loss)
per share is based on the following data:
Basic Adjusted Basic Adjusted
2014 2014 2013 2013
GBP000 GBP000 GBP000 GBP000
---------------------------------------- ------- --------- --------- ---------
Profit/(loss) attributable to ordinary
equity holders of the parent entity 1,725 1,725 (2,782) (2,782)
Exceptional items
(net of tax effect):
Profit on sale of
Australia properties ---- (1,823) ---- ----
Profit on sale
of UK property ---- (693) ---- ----
Contract for
Differences ---- 1,631 ---- ----
Profit on sale of investment in Colin
Campbell & Sons Limited ---- (111) ---- ----
Acquisition
costs ---- 633 ---- ----
Restructuring of Australia's
spinning mills ---- 546 ---- 608
Move to AIM ---- ---- ---- 177
Incentive
plan ---- ---- ---- 173
General Meeting
costs ---- ---- ---- 459
Write off of certain
intangible assets ---- ---- ---- 336
Impairment of investment
in associate company ---- ---- ---- 259
Earnings for the purpose of basic
and adjusted earnings per share 1,725 1,908 (2,782) (770)
Earnings for the purpose of basic
and adjusted earnings per share
from continuing operations 1,609 1,792 (2,600) (588)
---------------------------------------- ------- --------- --------- ---------
Weighted average number of shares:
2014 2013
Number Number
of of
shares shares
('000) ('000)
---------------------------------------------------- -------- --------------
Weighted average number of ordinary shares for the
purposes of basic and adjusted earnings per share 7,036 7,033
---------------------------------------------------- -------- --------------
The Group's earnings/(loss) per share are
as follows:
2014 2013
Pence Pence
---------------------------------------------------- --------
Basic adjusted and
diluted adjusted 27.12 (10.95)
Basic and
diluted 24.52 (39.56)
Basic adjusted and diluted adjusted from
continuing operations 25.47 (8.36)
Basic and diluted from continuing
operations 22.87 (36.97)
---------------------------------------------------- -------- --------------
The issue of 7,087,730 new shares post year-end on the 29 July
would have reduced the Group's earnings per share by 50% had they
been in place from the start of the financial period.
3 Exceptional Items from continuing operations
52 weeks 52 weeks
ended ended
29 March 30 March
2014 2013
GBP000 GBP000
------------------------------------------------------------ ----------- ----------------
(a)Contract
for Differences (1,631) ------
(b) Profit on
sale of properties 3,297 ------
(c) Restructuring of Australia's
spinning mills (780) (869)
(d) Acquisition
costs (655) ------
(e) Move to
AIM ------ (233)
(f) Incentive
plan ------ (227)
(g) General
Meeting costs ------ (604)
(h) Write off of certain
intangible assets ------ (442)
231 (2,375)
------------------------------------------------------------ ----------- ----------------
All exceptional items are classified within administrative
expenses (except where noted).
(a) Relates to the fair value of the Contract for Differences between
the Company and Geoffrey Wilding signed in April 2013, including related
professional fees of GBP26,000. The contract was terminated on 28
July 2014 and resulted in the issue of 7,087,730 new shares to Geoffrey
Wilding (through Camden Holdings Limited) on 29 July 2014.
(b) Relates to the profit from the sale and leaseback of Australia's
carpet manufacturing facility and spinning mill in Bendigo, and the
profit from the sale and leaseback of the carpet manufacturing facility
in Kidderminster, UK. This profit is included as part of other operating
income.
(c) Relate to costs associated with the "right-sizing" and reorganising
the two spinning mills to meet reduced volume requirements as a result
of declining demand for woollen yarns. The smaller of the two spinning
mills was closed during the first half of the financial period and
ceased production by the end of June 2013. The property is shown under
the heading 'assets held for sale' in the accounts at 29 March 2014
and was subsequently sold after the year end for its written down
value.
(d) Relate to professional fees in connection with the
acquisition of Globesign Limited in December 2013.
(e) Relate to costs incurred in the move from the Official
List to the AIM market of the London Stock Exchange.
(f) Relate to professional fees in connection with a proposed incentive
remuneration plan subsequently withdrawn.
(g) Relate to costs in connection with various General
Meetings of the Company, resulting in changes to the
Board composition.
(h) Relates to the write off of intangible assets held in relation
to 1) the acquisition of certain assets of C&H Distribution and 2)
the Munster brand in respect to the UK contract market where it is
no longer used.
4 Rates of exchange
The results of overseas subsidiaries 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:
2014 2013
Year
Average Year end Average end
------------- -------- --------- -------- -------
Australia -
A$ 1.7057 1.7988 1.5317 1.4565
Canada - C$ 1.6816 1.8401 1.5841 1.5427
------------- -------- --------- -------- -------
5 Reconciliation of operating profit/(loss) to net cash
inflow/(outflow) from operating activities
Group Company
2014 2013 2014 2013
GBP000 GBP000 GBP000 GBP000
--------------------------------------------- -------- -------- --------- --------
Operating profit/(loss) from continuing
operations 2,812 (2,873) 24,163 (714)
Adjustments for:
- Depreciation charges 2,484 2,700 60 60
- Amortisation of intangible assets 70 52 ---- ----
- Impairment of intangible assets ---- 442 ---- ----
- Fair value charge for Contract
for Differences 1,605 ---- 1,605 ----
- (Profit)/loss on disposal of property,
plant and equipment (3,324) 13 (693) (8)
- Exchange rate difference on consolidation 55 124 ---- ----
--------------------------------------------- -------- -------- --------- --------
Operating cash flows before movements in
working capital 3,702 458 25,135 (662)
Decrease/(increase) in working
capital 4,317 2,124 (11,488) (282)
--------------------------------------------- -------- -------- --------- --------
Cash generated/ (used) by operations 8,019 2,582 13,647 (944)
Interest paid (531) (465) (384) (105)
Income taxes paid (395) (506) ---- ----
--------------------------------------------- -------- -------- ---------
Net cash inflow/(outflow) from operating
activities 7,093 1,611 13,263 (1,049)
--------------------------------------------- -------- -------- --------- --------
6 Analysis of net debt
At Other At
30 March Cash non-cash Exchange 29 March
2013 flow canges movement 2014
GBP000 GBP000 GBP000 GBP000 GBP000
---------------------------------- ---------- --------- ---------- ---------- ----------
Cash 1,091 14,296 ---- (195) 15,192
Bank loans payable less than one
year and overdrafts (7,566) 2,294 ---- 5 (5,267)
---------------------------------- ---------- --------- ---------- ---------- ----------
Cash and cash equivalents (6,475) 16,590 ---- (190) 9,925
Finance leases and hire purchase
agreements
- Payable less than one year (143) 14 (37) 27 (139)
- Payable more than one year (390) ---- 37 74 (279)
Bank loans payable more than one
year (500) (10,488) ---- ---- (10,988)
----------------------------------
Net debt (7,508) 6,116 ---- (89) (1,481)
---------------------------------- ---------- --------- ---------- ---------- ----------
7. Post Balance Sheet Events
(a) Special Dividend
A special dividend of GBP2.92 pence per share was paid to
shareholders on 25 July 2014, following the approval by
shareholders at a General Meeting on 9 July 2014.
(b) Contract for Differences
A CFD between the Company and Geoffrey Wilding was entered into
on 19 April 2013, following shareholder approval at a General
Meeting of the Company on 20 February 2013. The CFD was
subsequently terminated further to satisfying the condition of
returning GBP3 per share to shareholders. At a General Meeting held
on 9th July 2014, shareholders approved the issue of 7,087,730 new
shares in settlement of the liability under the CFD upon
termination. Following this share issue, the percentage of the
Company owned by Geoffrey Wilding (through Camden Holdings Limited)
is 50%. The proportion of the cost recognised in the financial
period was approximately 15%.
(c) Castlemaine Spinning Mill
The Castlemaine spinning mill, in Australia, was closed during
the first half of the financial year and ceased production by the
end of June 2013. The property is shown under the heading "Assets
held for sale" in the financial statements at 29th March 2014 and
was subsequently sold after the year-end for its written down
value.
8. The results have been extracted from the audited financial
statements of the Group for the 52 weeks ended 29 March 2014. The
results do not constitute statutory accounts within the meaning of
Section 434 of the Companies Act 2006. Whilst the financial
information included in this announcement has been computed in
accordance with the principles of International Financial Reporting
Standards ("IFRS") as adopted by the EU, IFRIC interpretations and
Companies Act 2006 that applies to companies reporting under IFRS,
this announcement does not itself contain sufficient information to
comply with IFRS. The Group has published full financial statements
that comply with IFRS. The audited financial statements
incorporated an unqualified audit report. The Auditor's report on
these accounts did not draw attention to any matters by way of
emphasis and did not contain statements under S498(2) or (3)
Companies Act 2006.
Statutory accounts for the 52 weeks ended 30 March 2013, which
incorporated an unqualified auditor's report, have been filed with
the Registrar of Companies. The Auditor's report on these accounts
did not draw attention to any matters by way of emphasis and did
not contain statements under S498(2) or (3) Companies Act 2006. The
accounting policies applied are consistent with those described in
the Annual Report & Accounts for the 52 weeks ended 30 March
2013.
9. The Annual Report & Accounts are being posted to
shareholders today. Further copies will be available from the
Company's Registered Office: Worcester Road, Kidderminster,
Worcestershire, DY10 1JR or via the website:
www.victoriaplc.com.
10. The Annual General Meeting is being held at the Registered
Office of the Company, as above, at 11.00am on Wednesday, 24
September 2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR DVLFLZVFFBBE
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
