Interim Management Statement

RNS Number : 8316Z

Victoria PLC

24 July 2008

 



Issued by Citigate Dewe Rogerson Ltd, Birmingham

Date: Thursday, 24 July 2008

VICTORIA PLC

(the 'Company' or the 'Group')

Interim Management Statement

and

Annual General Meeting

At the Annual General Meeting of Victoria PLC held today (24 July 2008), Alexander Anton, Chairman, gave the following Interim Management Statement to shareholders:

'The overall performance of the Group in the first quarter has been satisfactory, despite the challenging market conditions. Sales revenues in the first quarter have grown by 10.8% (in constant currency terms) when compared to last year, although margins have been under pressure.

Looking across the territories in which we operate:

United Kingdom

Market conditions in the UK have hardened significantly since March and we are now likely to see a sustained period of difficult trading conditions in the floor coverings sector.

Against this back drop Victoria has grown sales revenues by 2.9% on a like for like basis. Weaker demand in residential sales has been off-set by a strong debut by the Company in the contract commercial market. There was, however, pressure on gross margins in the period, which declined by 3.6%, brought about by raw material price increases, which we now plan to pass on to customers in the near future.

Australia

The Group's Australian business produced a solid performance in the first quarter, in-line with management expectations. Sales revenues grew by 12.7% in local currency terms, with gross profit margins marginally down by 0.7% in the period.

Expansion plans outlined in the annual report are progressing well, being both on-time and within budget. The first of four new tufting machines was commissioned in June and the second machine is scheduled to commence production within the next few days.

Ireland

The Irish companies have made a promising start to the new financial year with sales revenues up significantly by 36.3% in local currency. The gross profit margin was, impacted negatively by 2.6% due to a change in sales mix.

Munster Carpets, the contract commercial division, had a good start to the year after securing several large contract orders, which had been identified last year. Navan Carpets, the residential division, saw an improved like for like performance on last year despite the worsening domestic market conditions.

Canada

Colin Campbell & Sons, the Group's Canadian associate company has grown sales revenues in the first quarter by 5.5%, but margins have been affected slightly by the planned discontinuation of older product ranges in preparation for the introduction of new product launches.

The roll-out of our new eco-friendly carpet programme, Nature's Carpet, in both Canada and the United States is proceeding well.

Summary

The Group's growth in sales revenues in the first quarter of 10.8% in constant currency terms is broadly in-line with management expectations, although margins have been under pressure due to cost increases which have yet to be passed on to customers.

The economic and market conditions in the UK & Ireland are anticipated to remain extremely difficult for the remainder of the year. The demand for residential carpet is likely to decline further, but it is hoped that the new ranges and a continuing service excellence, coupled with a widening of our channels to market will off-set the worst.

The outlook in Australia remains positive and overall the Board feel that the Company is well placed to deliver continued growth and profitability to its Shareholders'.

All resolutions were duly passed by the shareholders and details of the proxy votes are provided on the Group's website www.victoria.plc.uk or by request from the Company Secretary.

Enquiries:
Alan Bullock, Group Managing Director
Ian Davies, Group Finance Director		Keith Gabriel, Senior Account Manager
Victoria PLC		Citigate Dewe Rogerson
Tel:	[phone]	Tel:	[phone]
Mobile:	[phone] (AB)	Mobile:	[phone]
www.victoria.plc.uk

 

END

 

 

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