Record annual results for Victoria
Carpets group Victoria achieved record results for its latest financial year despite the impact of the coronavirus pandemic.
The 126-year-old business expects revenue for the year to April 3 to be more than £640 million – up from £621.5m for the previous year – with underlying earnings before tax rising from £118.1m to more than £120m.
The group, which has its headquarters at Worcester Road, also designs, manufactures and distributes a range of innovative flooring including ceramic tiles, luxury vinyl tile and artificial grass
The improved sales and profits are despite the impact of the April to May 2020 lockdown, which saw more than £50 million of revenue reduction in those two months.
The year saw no major acquisitions completed and the record trading results were driven by improved performance.
Victoria was able to capitalise on strong consumer demand by restarting manufacturing and logistics operations as soon as lawfully permitted – ahead of competitors. The result was a post-lockdown double-digit growth in revenue.
The board has invested a significant amount of management focus during the past year identifying additional suitable acquisition opportunities and the company has reorganised its financing arrangements to provide it with a significant amount of capital for acquisitions, as well as extending its debt financing maturities and reducing interest rates.
It anticipates being able to report further acquisition-led growth in the near future.
Victoria says the trading outlook for the 2021-2022 financial year is very encouraging in terms of both revenue and margins.
Housing sales, a key 12 to 18-month indicator of flooring sales, are at very high levels – not only in the UK, but across international markets. More than 70 per cent of the group’s earnings are now generated from outside the UK.
Victoria, which has been listed on AIM since 2013, remains focused on its mission to create wealth for shareholders.
The group has operations in the UK, Spain, Italy, Belgium, the Netherlands and Australia and employs approximately 3,400 people across more than 20 sites. It is now the UK's largest carpet and underlay manufacturer.
