Sales and profits improve for carpets group Victoria
Carpets group Victoria says it expects sales and underlying profits for the year to April 2 to be ahead of market expectations.
The Kidderminster-based group now expects, subject to finalisation of the accounts and audit, that revenue will be more than £970 million compared to £662.3m a year earlier with underlying earnings before tax at £155m – up £27.6m.
Victoria says that demand remains strong across its markets.
The group is also witnessing a strong resurgence in commercial demand including from hospitality, offices, leisure and housebuilding.
Victoria continues to have the ability to increase selling prices quickly to mitigate the impact of inflationary pressures on profits.
The group invested heavily in raw materials and continuity of operations last year to ensure production schedules and normal product availability were maintained, despite the global supply chain disruptions.
As the group’s raw material supply continues to stabilise, and as Victoria’s management gain confidence this is sustainable, the Group intends to return to normalised quantities of raw materials, releasing additional cash for further growth investment.
Executive chairman Geoff Wilding said: “There are operating challenges every year and FY2023 will be no different. However, we have invested carefully over the last nine years and Victoria is in a strong position to meet those challenges and capitalise upon them. As a result, the Board expects earnings before tax to be in excess of £200 million over the coming year.”
