Sales and profits soar at Kidderminster floorings group Victoria

Most recently the 122-year-old Kidderminster-based group paid £246.5m for Spanish tiling company Grupo Keraben and £50m for Italy's Ceramiche Serra.

Today it unveiled half year group revenues that have soared by 24 per cent on last year, to £189.5 million.

Underlying pre-tax profits also jumped in the six months to September 30, up 26 per cent to £15.5m.

Even on a statutory basis, including finance costs and exceptional items, profits rose five per cent to £8.8m.

But, as it continued its aggressive expansion drive, the company saw its net debt soar by 46 per cent to £98.6m, although Victoria said it was "very comfortable" with that figure.

The six months has also seen the company shut down carpet making at Kidderminster after more than a century, with the loss of around 60 jobs, as it concentrates manufacturing on two UK sites – in Yorkshire and South Wales – rather than three. The Kidderminster closure was completed in September.

It leaves around 150 still working at Kidderminster, which remains the company headquarters and centre of product development, with new warehousing and showroom facilities.

Chairman Geoff Wilding said: "Victoria had another successful six months and much was achieved during the period. We strengthened our management team, met all of our objectives, focused on improving efficiencies across the group and since the period end, have also announced two significant earnings enhancing acquisitions.

"Our strong operational management and the solid pipeline of acquisition opportunities gives the Board confidence that we will achieve all of our objectives for the current financial year."

Outlining the Kidderminster changes, Mr Wilding said: "Inevitably there was some short-term disruption to supply, which has now been totally put behind us.

"The resulting increase in productivity will contribute noticeably to our continued growth in operating margins across the group."

The two tiling company acquisitions are part of Victoria's declared aim to win a slice of the lucrative hard floorings market. While Serra generated £25m of revenue last year, Keraben, with 4 million sq ft of facilities near Valencia, generated £106.4m.

Looking ahead, Mr Wilding said: "The markets in which Victoria trades – the UK, Europe, and Australia – continue to experience demand."

And there are more takeovers to come: "There is no shortage of acquisition opportunities, although we remain very selective. Our strong positive cash-flow, together with supportive bankers and shareholders ensure further acquisition-based growth can be funded. By maintaining very strict criteria and strong price discipline, I am confident that future acquisitions will continue to be earnings enhancing and a useful tool to both strengthen the group and create wealth for shareholders."

With operations in the UK, Belgium, the Netherlands and Australia, Victoria currently employs 1,800 people across 20 sites. It is the UK's largest carpet manufacturer and the second largest in Australia.