11th Jul 2019 10:43
(Alliance News) - Victoria PLC said Thursday it swung to a loss in what the floor coverings company described as "challenging" trading conditions, despite revenue rising in a "record year" for the firm.
For the financial year that ended March 30, Victoria recorded a pretax loss of GBP3.7 million, swinging from a profit of GBP13.4 million the year before, despite revenue rising 35% to GBP574.4 million from GBP424.8 million.
Some of the revenue was offset by GBP12.7 million in exceptional reorganisation costs and a further GBP20.9 million in growth capital expenditure which included investment in its carpet, ceramics and underlay departments.
Victoria also paid GBP1.8 million in legal and advisory fees in relation to its GBP86.2 million acquisition of tile maker Ceramica Saloni.
Those three costs in financial 2019 added up to GBP35.4 million. In financial 2018 by comparison, exceptional costs were GBP27.4 million.
Underlying operating profit rose 44% to GBP70.3 million in financial 2019 from GBP48.8 million the year before, and underlying earnings before interest, tax, depreciation and amortization grew by 49% to GBP96.3 million from GBP64.7 million.
Executive Chair Geoff Wilding said: "Victoria achieved another record year in 2019 making it the sixth consecutive year of growth in underlying earnings; and free cash flow per share, and operating margins, despite continuingly challenging market conditions.
"There remains an enormous market opportunity for Victoria to expand both in the UK and internationally, by organically improving margins and earnings still further within our existing business, as well as by acquisition, where we believe opportunities we have identified will make a meaningful contribution to the group. We remain focused on increasing both earnings and free cash flow per share."
Like last year, Victoria decided against paying shareholders a dividend.
Shares in the company were down 1.5% at 482.60 pence in London on Thursday morning.
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