TIDMVCP
RNS Number : 0326I
Victoria PLC
12 April 2022
12 April 2022
For Immediate Release
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR. .
Victoria PLC
('Victoria,' the 'Company,' or the 'Group')
Full Year Trading Update
Results Ahead of Market Expectations
Victoria PLC, (LSE: VCP) the international designers,
manufacturers and distributors of innovative flooring, is pleased
to confirm that the Group's revenues and underlying profits are
expected to be ahead of consensus market expectations for the
financial year ended 2 April 2022. The Group now expects, subject
to finalisation of the accounts and audit, revenues to be in excess
of GBP970 million (FY21: GBP662.3m), underlying EBITDA in excess of
GBP155 million (FY21: GBP127.4m), and underlying EBIT in excess of
GBP100 million (FY21: GBP79.8m).
Outlook
-- Demand strong. Heading into the new financial year, demand
for the Group's products remains robust across our markets, with
consistent demand from consumers driving our retailer channels.
Furthermore, the Group is also witnessing a strong resurgence in
commercial demand (hospitality, offices, leisure, home
construction), which is additive to consumer demand.
-- Inflation managed. As with all industries, inflation is
self-evidently an important feature of the current operating
environment, but Victoria continues to have the ability to increase
selling prices quickly (and is doing so) to mitigate the impact of
inflationary pressures on profits. The Group remains competitively
very well placed in its markets to defend its position or
capitalise on opportunities where gaps appear.
-- Supply chain secure. Shareholders may recall that Victoria
invested heavily in raw materials and continuity of operations last
year to ensure production schedules and normal product availability
were maintained, despite the global supply chain disruptions. This
established Victoria as a reliable partner to our customers, when
many alternative suppliers had extended delivery periods (or even
no delivery at all), and this reputational enhancement has led to
continued market share gains. Management believes that the Group's
reliability will continue to drive long-term organic growth.
As the Group's raw material supply continues to stabilise, and
as Victoria's management gain confidence this is sustainable, the
Group intends to return to normalised quantities of raw materials,
thereby releasing additional cash for further growth
investment.
-- Acquisitions. Acquisitions remain an integral part of
Victoria's growth strategy and the Board believes that the Group's
uniquely proactive methodology of identifying and executing on
opportunities will continue to deliver value-creating acquisitions.
Despite Victoria's significant growth in recent years, its share of
the flooring market remains less than 2% in Europe and less than
10% in the UK, which leaves very substantial opportunities in what
remains a highly fragmented industry.
Share Buybacks & Capital Allocation
In recent weeks Victoria's share price has, the Board believes,
completely decoupled from the Group's economic reality. As noted
above, ongoing demand for product remains strong and the Group
continues to have the ability to successfully increase prices to
mitigate inflation. Consequently, the Board decided to deploy a
proportion of excess cash to take advantage of the opportunity to
make market purchases of its own shares at levels it believes are
materially below the intrinsic value of the Group, thereby serving
Victoria's mission to create wealth for shareholders.
Victoria has become a permanent home of choice for flooring
businesses in Europe and the US, and the Group's potential pipeline
of accretive acquisitions continues to be compelling. As such the
recent opportunistic share repurchases are therefore not the start
of a formal and regular programme to return capital to shareholders
as we continue to see significant short and medium-term organic and
acquisitive investment opportunities, notwithstanding current world
events.
Executive Chairman Geoff Wilding said, " There are operating
challenges every year and FY2023 will be no different. However, we
have invested carefully over the last nine years and Victoria is in
a strong position to meet those challenges and capitalise upon
them. As a result, the Board expects EBITDA to be in excess of
GBP200 million over the coming year."
(1) Applying a GBP:EUR exchange rate of 1.18
The person responsible for arranging the release of this
announcement on behalf of the Company is Michael Scott, Group
Finance Director
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
Singer Capital Markets (Nominated Adviser
and Joint Broker)
Rick Thompson, Phil Davies, Alex Bond +44 (0) 207 496 3095
Berenberg (Joint Broker)
Ben Wright, Richard Bootle
Peel Hunt (Joint Broker) +44 (0) 203 207 7800
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, Turkey,
the United States and Australia and employs
approximately 4,500 people across 30 sites.
Victoria is Europe'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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