Victoria PLC - Interim Results
25 Novembro 1998 - 7:59AM
UK Regulatory
RNS No 0858v
VICTORIA P.L.C.
25th November 1998
Victoria P.L.C.
Manufacturers, marketers and distributors of premium branded carpet yarn and
carpets in the UK and Australia
Interim Results
for the six months ended 30 September 1998
Excellent progress on all fronts despite market conditions
Turnover #17.1 million
Operating profit up 139% to #696,000
Profit before tax up 476% to #472,000
Earnings per share up 462% to 4.61p
Strong cash flow
Strengthened market position
New products performing well
Surplus properties in portfolio being actively marketed
"The Group has made excellent progress despite difficult market conditions.
"The current state of the UK market is difficult with the plight of some of
the larger high street retailers well recorded. The Autumn trading season,
normally an active period for carpet sales, has started slowly but demand for
our new products remains at encouraging levels. In the UK we are confident
that we have the right facilities and products in place to make the best of
whatever market conditions prevail.
"With the new ranges developed in 1997 and new products launched in 1998 we
remain cautiously optimistic that our position will continue to improve. In
Australia, market conditions have improved. With the benefits from our
previous capital expenditure and new product development we expect the
business to continue to increase its profitability."
Bob Gilbert, Chairman
FULL STATEMENT ATTACHED
Enquiries:
Alan Bullock, Group Managing Director Today: 0171-282 8000
Mark Lee, Group Finance Director Mobile (A Bullock) 0385-325 701
Victoria P.L.C. Thereafter: 01562 823400
Fiona Tooley/Vanessa Hazeldine Today: 0171-282 8000
Citigate Dewe Rogerson Mobile (F Tooley): 0385 703523
Thereafter: 0121-631 2299
Victoria P.L.C.
Interim Results
for the six months ended 30 September 1998
STATEMENT BY THE CHAIRMAN, BOB GILBERT
RESULTS
The Group has made excellent progress despite difficult market conditions.
Turnover for the six months ended 30 September 1998 was #17.10 million,
compared to #18.77 million last year. However, in local currencies, the
United Kingdom, Australian and Canadian operations each showed increased
turnover.
With the improved product mix and better cost controls, operating profit was
substantially higher at #696,000 (1997: #291,000), and profit before tax was
increased to #472,000 (1997: #82,000). We continue to generate cash and at the
end of the period gearing was 34.5% (March 1998: 37.6%).
UNITED KINGDOM
Since late 1996, we have followed the strategy of investing in state of the
art equipment together with a new generation of products. Through improved
marketing and strongly targeting the independent retail sector the UK
operations have been able to show a positive increase in profit over the
corresponding period last year.
Our UK carpet sales were higher than the comparable period both in value and
volume. Against a background of a decline in the UK market of some 10%, this
indicates a strengthening of our market position.
September was a particularly notable month, as we collected the industry award
for the Firmtwist range introduced last year, and launched the new Natural
Look and Chateau Royale ranges.
Export sales in the period were lower as Sterling remained strong and
economies faltered world-wide.
Westwood Yarns again made a solid contribution to the Group result, with a
higher proportion of its sales being within the Group.
AUSTRALIA
Despite the effects of the Asian crisis on the Australian economy, turnover in
the home market has been maintained and profitability increased. Export
turnover was expanded, particularly to North America.
The investment in our yarn spinning operation at Castlemaine is now yielding
excellent returns and contributed to the increase in Australian profits.
We continue to reinvest profits from the Australian business to strengthen its
position as one of the leading manufacturers in that Continent.
CANADA
Colin Campbell & Sons, our 50% owned associate in Canada, had a strong first
half, more than doubling its contribution to Group profits. Campbell's
growing sales of our Australian manufactured products provide an additional
market and source of profit for the Group.
PROPERTY
Your Board has recognised that there are properties within its portfolio which
are surplus to planned requirements. We have been actively looking for
opportunities for disposal which will maximise shareholder value and enable
the complete consolidation of our UK carpet manufacturing onto one site.
We are currently at an advanced stage of negotiations with a developer for the
sale of our Green Street property, at a value in excess of the Option price,
of #2.51 million, set in the Option Agreement entered into in 1995, which has
now lapsed.
It is envisaged that full details of this transaction, which will be subject
to shareholder approval, will be circulated shortly.
PROSPECTS
The current state of the UK market is difficult with the plight of some of the
larger high street retailers well recorded. The Autumn trading season,
normally an active period for carpet sales, has started slowly but demand for
our new products remains at encouraging levels.
In the UK we are confident that we have the right facilities and products in
place to make the best of whatever market conditions prevail.
With the new ranges developed in 1997 and new products launched in 1998 we
remain cautiously optimistic that our position will continue to improve.
Whilst overseas business has been inhibited by both economic conditions and
the strength of Sterling, the recent more realistic value of Sterling should
assist our export prospects for the second half.
In Australia, market conditions have improved. With the benefits from our
previous capital expenditure and new product development we expect the
business to continue to increase its profitability.
Victoria P.L.C.
Interim Results
GROUP PROFIT AND LOSS ACCOUNT
for the six months ended 30 September 1998
Six months Six months Year
to to to
30 30 28
September September March
1998 1997 1998
Unaudited Unaudited Audite
d
Note #'000 #'000 #'000
Turnover 17,096 18,773 35,728
Cost of sales 12,318 14,132 26,452
Gross profit 4,778 4,641 9,276
Distribution costs 3,142 3,433 6,372
Administration costs 1,044 1,042 1,694
Other operating income 104 125 244
Operating profit 696 291 1,454
Interest payable 260 225 483
Share of profits of associated 36 16 34
undertaking
Profit on ordinary activities 472 82 1,005
before taxation
Taxation on profits on ordinary 156 26 270
activities
Profit for the period 316 56 735
Dividends proposed - - 240
Retained earnings 316 56 495
Earnings per share 2 4.61p 0.82p 10.71p
Dividends per share 3 - - 3.50p
Victoria P.L.C.
Interim Results
CONSOLIDATED BALANCE SHEET
for the six months ended 30 September 1998
30 30 28
September September March
1998 1997 1998
Unaudited Unaudited Audite
d
#'000 #'000 #'000
Fixed assets
Tangible assets 11,997 11,534 12,472
Investment in associated 217 182 196
undertaking
12,214 11,716 12,668
Current assets
Stock 9,154 10,832 10,357
Debtors 6,027 7,085 6,032
Cash 15 10 29
15,196 17,927 16,418
Less: current liabilities
Creditors due within one year 9,171 10,859 10,092
Net current assets 6,025 7,068 6,326
Total assets less current 18,239 18,784 18,994
liabilities
Less: Creditors due after one 1,735 2,714 1,901
year
Provision for 584 593 598
liabilities and charges
Net assets 15,920 15,477 16,495
Capital and reserves (equity)
Share capital 1,715 1,715 1,715
Share premium account 749 749 749
Revaluation reserve 2,909 1,360 3,014
Profit and loss account 10,547 11,653 11,017
Total shareholders' funds 15,920 15,477 16,495
Victoria P.L.C.
Interim Results
CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 September 1998
Six months Six months Year
to to to
30 30 28
September September March
1998 1997 1998
Unaudited Unaudited Audite
d
#'000 #'000 #'000
Operating profit 696 291 1,454
Depreciation charges 521 589 1,111
Profit on sale of fixed assets (3) - (11)
Decrease/(Increase) in working 954 (1,637) (1,318
capital )
Exchange rate difference on (501) - (550)
consolidation
Net cash inflow/(outflow) from 1,667 (757) 686
operating activities
Reorganisation costs - (1) -
Returns on investment and
servicing of finance
Interest paid (199) (168) (363)
Hire purchase interest (61) (57) (120)
(260) (225) (483)
Taxation
UK corporation tax paid (42) (40) (110)
Overseas tax received - 13 -
(42) (27) (110)
Capital expenditure and
financial investment
Payments to acquire tangible (587) (910) (1,356
fixed assets )
Receipts from sales of tangible 24 11 49
fixed assets
Return of capital in associated 12 13 13
undertaking
(551) (886) (1,294)
Equity dividends paid (240) (169) (169)
Financing
Debt due within one year
Repayment of secured loans (168) (94) (407)
Increase in long term loans 322 409 150
Capital element of finance lease
and (262) (228) (525)
hire purchase payment
Receipts from financing of 40 588 707
assets
(68) 675 (75)
Increase / (decrease) in cash 506 (1,390) (1,445)
Victoria P.L.C.
Interim Results
NOTES TO THE INTERIM STATEMENT
for the six months ended 30 September 1998
1. Basis of preparation
The results for the year ended 28 March 1998 are extracts from the Group
report and accounts as filed with the Registrar of Companies. These were
audited and reported upon without qualification under section 235 of the
Companies Act 1985.
2. Earnings per share
The earnings per share for the period are based on 6,860,556 ordinary
shares in issue throughout the period (1997: 6,860,556).
3. Dividends
No interim dividend is proposed (1997: nil)
4. The Interim Statement will be posted to shareholders on Friday 27th
November 1998. Further copies are available from the Company Secretary,
Victoria P.L.C., Green Street, Kidderminster, Worcester, DY10 1HL, Tel:
01562 823400.
END
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