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Victoria Expecting Profit, Revenue To Beat Market Expectations

4th Apr 2018 11:28

LONDON (Alliance News) - Flooring firm Victoria PLC said Wednesday it expects profit and revenue to be ahead of market expectations for is recently ended financial year for the fifth year running.

Victoria said performance in the year, which ended March, was driven by like-for-like growth, gains in market share, and operational synergies, which includes the rationalisation of its UK manufacturing facilities. This, Victoria said, has helped its gross profit margin and reduced overheads.

The trading performance of the two ceramics businesses acquired in 2017 has also been "encouraging" and has met expectations.

Victoria generates nearly 60% of its earnings outside the UK, spread across several categories of flooring including carpets, ceramics, underlay, and luxury vinyl tiles.

This geographic and product diversification, coupled with the low operational gearing inherent in the business, reduces the overall operational risk, it said.

Ongoing operational improvements in logistics, procurement, and production efficiencies are expected to continue to deliver further earnings growth over the coming 12 months, according to the flooring manufacturer.

The company has during the past year focused on identifying further suitable acquisition opportunities, and Victoria said to expect further acquisition-led growth, focused on Europe.

Geoff Wilding, executive chairman, said: "We are now seeing the clear benefits of our strategy to develop a broadly based, resilient flooring business, where operational and manufacturing synergies lower costs, whilst also providing a robust platform for organic and acquisitive growth. This is in no small part due to the excellence of our wider senior management teams who continue to drive the business and create opportunities to grow market share while maintaining margins."

He added: "The board is encouraged by 2018 trading to date. Together with progress on ongoing internal initiatives to deliver synergies and revenue growth, and the very attractive acquisition prospects already identified, the board is confident it will deliver another year of significant, earnings-accretive growth in the 2018/19 financial year."

Shares in Victoria were trading up 2.9% Wednesday morning at 763.84 pence each.


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