Record sales for Victoria as profits soar
Carpets and floor coverings group Victoria saw its profits soar in the six months to October 1.
The Kidderminster-based group's pre-tax profit of £53.1 million compared to a £2.9m profit a year earlier.
It enjoyed record revenue of £776.1m in the half year from £489m in 2021.
New acquisitions made a big contribution to the operating performance with revenue growth up 7.7 per cent on a like-for-like basis.
The group said that proactive management of raw materials and energy successfully mitigated both inflationary pressures and supply chain constraints.
During the half year Victoria completed the acquisition of the rugs and UK carpet divisions of Balta to make the group Europe’s largest manufacturer of soft flooring. Integration is well underway to realise the material potential synergy benefits of this acquisition.
Geoff Wilding, executive chairman of Victoria, said: “Integration of recent acquisitions is proceeding apace and on schedule. Consequently, the board believes cash flow, after exceptional costs relating to the integration projects, will be in excess of £100m in the second half.
"In the near term it is likely that disposable incomes in some markets will come under further pressure, from higher interest rates and inflation and the resulting weakening consumer demand may make additional price increases to offset higher input costs more difficult for the company to implement.
"Nevertheless, whilst acknowledging these challenges, I am pleased to say that the board continues to be confident that synergy gains and proactive management actions will enable Victoria’s financial performance for 2022-2023 to be in line with market consensus expectations and the outlook for the business remains positive.”
