Update

RNS Number : 5029H

Victoria PLC

20 June 2013

 

20 June 2013

Victoria PLC

('Victoria,' the 'Company,' or the 'Group')

Update 

Victoria PLC ('Group', 'Victoria' or 'Company'), a manufacturer, supplier and distributor of design-led carpets  and other floorcoverings, provides  the following  corporate update  for the year ended 30 March 2013, ahead of its full year results announcement, which is anticipated to be in the last week of July.

Tough trading conditions were highlighted at the time of the interim results announcement in November last year and as anticipated, trading has remained difficult in the second half in both of our core markets in Australasia and the United Kingdom.

At the half year it was reported that stock levels were considered to be too high, and in the second half period significant reductions in stock levels were targeted and achieved. The focus on stock reductions has, however, adversely impacted on gross margins in the period.  Whilst the audit is not yet finalised, the Board now anticipates the Group pre-tax loss (pre-exceptional items) for the year ended 30 March 2013 will be higher than market forecasts by approximately £0.4m.

At the time of the interim results, the Company announced that it was likely that exceptional items and provisions would be incurred in the second half of the current year and that this would materially impact the Group results.  It is now anticipated that exceptional items of circa £2.6m will be incurred in the year ended 30 March 2013, of which £1.6m relates to the restructuring of Australia's spinning mills and impairment of certain intangible assets and investments.

Despite the significant exceptional costs in the period, the Group has reduced its net debt levels from circa £8.3m at the half year to circa £7.5m at year end, which is also below the prior year end level of £7.7m.

The cost base was reviewed in the second half period and a number of operational initiatives were identified that will result in substantial cost savings. Whilst some of the initiatives have already been implemented, the full benefits will flow into future financial periods.

The Group has traded profitably in the first two months of the new financial period and results are in line with market expectations.   

Overall, the Board believes that an appropriate strategy has been adopted and that the actions taken will position the Company well for the future.

Enquiries:

Victoria PLC

Geoff Wilding, Executive Chairman

Tel: [phone]

Cantor Fitzgerald Europe (Nominated Adviser)
Tel: [phone]
Rick Thompson/Tom Sheldon (Corporate Finance)
Richard Redmayne (Corporate Broking)

MHP

Nick Denton

Vicky Watkins

Tel: [phone]

 

END

 

 

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