Victoria PLC Comment on the Second UK Lockdown & Recent Trading (0181E)
03 Novembro 2020 - 4:00AM
UK Regulatory
TIDMVCP
RNS Number : 0181E
Victoria PLC
03 November 2020
For Immediate Release 03 November 2020
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Victoria PLC
('Victoria', the 'Company', or the 'Group')
Comment on the Second UK Lockdown
And
Recent Trading
The Board of Victoria PLC (LSE: VCP) the international
designers, manufacturers and distributors of innovative flooring,
notes the announcement regarding the imminent one-month lockdown in
England. Based on the Company's experience of the UK-wide lockdown
earlier this year, the Board believes that, in the long run, this
second lockdown will make little material difference to
Victoria.
Victoria has used the last six months to adapt its factories to
enable production to be maintained whilst providing a Covid-safe
environment. Health monitoring, social distancing, staggered
shifts, PPE, education, and other practises have been adopted
throughout the Group to enable full production schedules through
another lockdown. All the Group's factories will remain open and
continue to accept and deliver orders. Victoria's experienced
management team intends to continue production throughout the next
month, which is expected to minimise the impact of the lockdown on
Victoria's UK business.
The Board believes the Group's liquidity position is strong and
we expect to continue to grow at the expense of weaker competitors
- particularly those with UK-centric businesses, that do not have
Victoria's advantage of generating a very significant majority of
earnings and cash from outside the UK. Therefore, whilst the Group
may not be as cash generative had the second lockdown not happened
(with net debt therefore reducing slightly less), the Board expects
improved profitability as we capitalise on the decline of weaker
competitors.
Recent Trading
Trading in recent months exceeded the Board's expectations, with
sales for the 3 months to 3 October 2020 recovering above both
management's pre-Covid budget (which included the anticipated
benefit of productivity investments made over the previous 18
months), and last year's levels. The Board believes this favourable
outcome is a result of people spending more time in their homes and
working remotely. This trend is encouraging increased investment by
consumers in home redecorating, as well as driving new home
purchases across all the markets where the Group trades.
For the September quarter, Group revenues were as follows:
3 months to 3 October % of pre-Covid-19 % of same period
(GBP millions) budget last year
Group Revenues 195 109% 128%
---------------------- ------------------ -----------------
Additionally, the Group continues to maintain a strong liquidity
position and finished the quarter with cash and undrawn credit
lines in excess of GBP200 million - up from GBP180 million as at 30
June. Shareholders will also recall that, despite the lockdown in
all of Victoria's geographies in the June quarter, negative cash
flow was just GBP7 million for the three months.
Outlook
The Board is also pleased to have announced the proposed GBP175
million investment by an affiliate of Koch Equity Development, LLC,
together with the off-market buyback by the Company of 8.55 million
ordinary shares at 350 pence, neither of which will be impacted by
the lockdown.
It remains premature to provide meaningful earnings guidance for
FY2021, although the Board looks forward to updating shareholders
on 30 November, with the publication of the Interim Results for the
six months ending 3 October 2020.
For more information contact:Victoria PLC
Geoff Wilding, Executive Chairman
Philippe Hamers, Group Chief Executive
Michael Scott, Group Finance Director +44 (0) 1562 749 610
N+1 Singer (Nominated Adviser and Joint
Broker)
Rick Thompson, Phil Davies, Alex Bond +44 (0) 207 496 3095
Berenberg (Joint Broker)
Ben Wright, Mark Whitmore +44 (0) 203 207 7800
Peel Hunt (Joint Broker)
Adrian Trimmings, Andrew Clark +44 (0) 207 418 8900
Buchanan Communications (Financial PR)
Charles Ryland, Chris Lane, Tilly Abraham +44 (0) 20 7466 5000
About Victoria
Established in 1895 and listed since 1963
and on AIM since 2013 (VCP.L), Victoria
PLC, is an international manufacturer and
distributor of innovative flooring products.
The Group, which is headquartered in Kidderminster,
UK, designs, manufactures and distributes
a range of carpet, flooring underlay, ceramic
tiles, LVT (luxury vinyl tile), artificial
grass and flooring accessories.
Victoria has operations in the UK, Spain,
Italy, Belgium, the Netherlands and Australia
and employs approximately 3,400 people
across more than 20 sites. Victoria is
the UK's largest carpet manufacturer and
the second largest in Australia, as well
as the largest manufacturer of underlay
in both regions.
The Group's strategy is designed to create
value for its shareholders and is focused
on consistently increasing earnings and
cash flow per share via acquisitions and
sustainable organic growth. (Further information
about Victoria can be found on its website,
www.victoriaplc.com.)
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