Victoria set for further growth

Carpets group Victoria says current trading is ahead of market expectations and it believes this growth will continue into the new year.

Victoria Carpets in Kidderminster is the headquarters of the group
Victoria Carpets in Kidderminster is the headquarters of the group

The Kidderminster-based floor coverings business has seen strong recovery in sales since the first lockdown.

For the 27 weeks to October 3 revenue was down from £312.3 million a year before to £305.5m and its went from a pre-tax profit of £5.5m to a loss of £2.9m

Widespread lockdowns around the world impacted on the first quarter of the financial year, but there had been record post-lockdown performance, with absolute growth of 22.8 per cent,

There were also sustainable productivity gains from operational reorganisation and synergy projects completed last year

Following the half year, Koch Equity Development, a subsidiary of the US group Koch Industries, committed to invest £175 million in preferred equity to accelerate Victoria’s acquisition strategy. They also acquired a 10.7 per cent shareholding in Victoria

The board expects the full year performance to be well ahead of market expectations.

Executive chairman Geoff Wilding said: “The underlying resilience of Victoria was proven during the challenging conditions of 2020-2021. The strength of the group’s operational management, the skill and flexibility of our workforce, our robust customer loyalty, and the strength of our balance sheet, came together under the most difficult trading conditions in living memory to deliver an outstanding result for its shareholders.

"The strong demand we are currently experiencing for our products is expected to continue due to consumers prioritising spending on their home environment, supported by some of the highest household savings rates on record. As a result, meaningful organic growth is expected to continue into the new year.

"We were also delighted to be able to recently announce the £175 million preferred equity investment by Koch Equity Development, which brings the capital, resources, and deep industrial expertise of one of the largest privately held companies in the United States to back Victoria’s next phase of shareholder value creation.”

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