Interim Management Statement

RNS Number : 8250W

Victoria PLC

06 February 2012

 

"International designers and manufacturers of innovative quality floorcoverings"

Issued by Citigate Dewe Rogerson

Date:  Monday 6 February 2012                                                                                         Immediate Release

VICTORIA PLC

INTERIM MANAGEMENT STATEMENT

Victoria PLC ('Group', 'Victoria' or 'Company') publishes its Interim Management Statement covering the 13-week period from 2 October to 31 December 2011 and a trading update covering the period from 1 January 2012 to the date of this announcement, as required by the UK Listing Authority Disclosure and Transparency Rules.

Trading

Total Group revenue in the period 2 October to 31 December 2011 was up by 3.5% compared to the same period last year, but marginally below (-0.7%) in constant currency terms.

Victoria's UK business has continued to see growth in its sales through the John Lewis Partnership, the insurance replacement market and the contract market, which have more than off-set any weakness seen in general retail sales.  Pleasingly, Victoria's sales in the UK were up strongly in the period by 11.2% and, when combined with our sales to Ireland, which are now reported upon as part of the UK operation, still showed a gain of 4.1% in constant currency terms.

The Group's Australian operation saw sales down by 3.9% in local currency terms as concerns about Australia's dependence on the mining sector and wider international factors such as the European Debt crisis impacted consumer sentiment in Australasia.

2012 trading to date in both the UK and Australia have been in line with management expectations. Sales in the UK were ahead of January last year, whereas sales in Australia were slightly down in what is a generally quiet summer holiday period.  This reflects favourably against others in the sector who recently reported relatively poor trading and the Board feels that this is further evidence that its strategy is feeding through and starting to deliver value to its shareholders.

The Group's planned move in the UK into the luxury vinyl flooring market this year is on target and proceeding well. Currently, we are in the process of launching the ranges to our customers with a series of "road-shows" and we are pleased to report that feedback from our customers has been very encouraging.  We look forward to updating shareholders further on progress in this new area of our business later in the year.

Recent Events

Towards the end of last year, the Directors became aware that a consortium was attempting to take control of the Company and, consequently, an announcement was issued to the market and posted to all shareholders on 21 December 2011.  

On 17 January 2012, the Company announced that it had received a requisition pursuant to Section 303 of the Companies Act 2006 requiring the Company to convene a General Meeting, no later than    6 March 2012, for the purpose of proposing ordinary resolutions (the "Resolutions") to the effect that all of the Company's Independent Non-Executive Directors, being Nikki Beckett (Chairman) and Peter Jensen (Senior Independent Non-Executive Director), should be removed as Directors of the Company and that in their place should be appointed Alexander Anton, a former Director and Chairman of the Company, Geoff Wilding, Lady Katherine Innes Ker and Sir Bryan Nicholson.

This minority shareholder group is trying to take control of the Company without telling the Board or the majority of shareholders of their reasons for demanding change or their strategy for the business.  Furthermore, they are offering no financial consideration in exchange for control of the Company.

Shareholders are urged NOT to undertake to support the Requisitioners' Resolutions.

On Friday 13 January 2012, the Company announced it had instigated a formal sales process.  The Board unanimously believes that this process will achieve the objective of realising value for shareholders, whilst safeguarding the interests of all stakeholders.

Although there can be no certainty that any offer will be made for the Company or its operating businesses, or even proposed, the Company has currently set a deadline of the end of February 2012 for the announcement of any firm offer for the Company or its operating businesses. 

The Board believes that it will be in a position to give all shareholders a real choice by the time of the General Meeting.

The Directors are most grateful to all those shareholders and other stakeholders who have expressed their support to them and the business whilst these matters are resolved.

The Board, together with the operational management teams across the business, remain very focused on building Victoria's 'brand' reputation and its objective of delivering a strong business performance in an economic climate that is still far from easy, and we look forward to updating on our progress at the year-end.

Enquiries to:

Victoria PLC	Citigate Dewe Rogerson	Arden Partners
Office: [phone]	Mobile: [phone]	Office: [phone]
Alan Bullock, Group Managing Director	Office: [phone]	Steve Douglas, Corporate Finance Director
Or	Fiona Tooley
Ian Davies, Group Finance Director
www.victoriaplc.com
LSE; Premium Listing
Ticker: VCP.L

Shareholders are advised by the Board NOT to take any action and urged NOT to undertake to support the Requisitioners' Resolutions.  Shareholders should wait until:

(a)           they have received and read the circular from the Company containing the Notice convening the General Meeting and at which the Resolutions to change the Board will be voted upon, and

(b)       the Board reports on the progress of the formal sale process, announced on 13 January 2012, by the end of February 2012.

 

END

 

 

IMSTAMMTMBIMTMT