19th Jun 2024 12:14
(Alliance News) - Victoria PLC on Wednesday said management took action over the last year to prepare the business for a future recovery amid dampened consumer demand.
The Worcester, England-based designer, manufacturer, and distributor of innovative flooring products said in the year that ended March 30, pretax loss widened to GBP130.9 million from GBP110.6 million the previous year.
Revenue slumped 14% to GBP1.27 billion from GBP1.48 billion.
In accordance with the last ten years, Victoria continues to pay no dividend with the board opting to deploy capital elsewhere in the business.
The company maintains a strong liquidity position, finishing the year with cash and undrawn credit lines in excess of GBP250 million.
Weaker performance during the year was primarily attributed to challenging macroeconomic conditions that depressed consumer spending amid rising inflation and lower confidence. Management also noted the impact of Covid-19 lockdowns which elevated demand for home improvement products throughout financial 2021 to 2022.
In response to this, with demand subdued, management focused on the completion of integration and reorganisation projects to prepare the company for a future recovery.
The company reduced staffing levels by 16% and laid off 1,170 personnel to "deliver structural improvement" while maintaining production capacity.
Looking ahead, management remains cautious regarding near-term trading conditions and conceded that it will be difficult for the company to anticipate the recovery.
Executive Chair Geoff Wilding said: "As interest rates fall, housing transactions and deferred residential renovation, improvement and repair purchases will rebound, driving flooring demand.
"We expect the market outperformance and productivity improvements secured over the last 24 months to then be rapidly reflected in Victoria's earnings and cash flow. Until this occurs, we remain focussed on minimising controllable costs and driving market share gains."
Victoria shares were down 1.1% to 170.20 pence each in London on Wednesday afternoon.
By Elijah Dale, Alliance News reporter
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