Victoria PLC Continued Growth at Italian Business
March 29 2021 - 2:00AM
RNS Non-Regulatory
TIDMVCP
Victoria PLC
29 March 2021
Victoria PLC
('Victoria', the 'Company', or the 'Group')
Continued Growth at Italian business - Milestone of EUR100m
Sales Achieved
The Board of Victoria PLC (LSE:VCP), the international
designers, manufacturers and distributors of innovative
floorcovering, is pleased to advise that its Italian business has
continued to grow throughout 2020/21 and on Friday invoiced its
EUR100 millionth sale since the start of the financial year.
In December 2017, Victoria began its expansion into Italy by
acquiring Sassuolo-based ceramic tile manufacturer, Ceramiche Serra
- a mid-sized factory with revenues at the time of EUR28 million.
As shareholders will recall from earlier announcements, Serra
continued to perform very strongly under Victoria's ownership and,
notwithstanding investment in a new production line shortly after
acquisition, outgrew its production capacity during 2019.
Therefore, in February 2020, Victoria acquired, for GBP9.9
million, the factory of a neighbouring business, which was facing
closure, complete with its plant, equipment and brands . This was a
highly efficient way of adding production capacity as it provided
more-or-less instantaneous additional production capacity versus
the 18-24 months it would take to build a factory, install the
plant, and acquire emission rights.
This factory was fully integrated into the existing Italian
operation during the following six months, with a reduction of
employees from 368 to 250 FTE alongside production output
increasing by 1.2m m(2) of red body tiles and 0.7m m(2) of
porcelain tiles. The product mix was also optimised.
Victoria is delighted to report that, despite the constraints of
the last 12 months, the management team has taken full advantage of
the additional capacity. G rowth has accelerated over the last 12
months with new significant customers and new markets - mainly in
Eastern Europe and North America - being secured (nearly 100% of
output is exported globally) . As a result, on Friday 26 March, the
business reached a remarkable milestone - invoicing EUR100 million
of sales for the year since 30 March 2020.
Organic growth has again filled capacity and some production is
once more being outsourced. Consequently, Victoria is now actively
seeking to efficiently add further capacity to enable this
production to be insourced to improve margins further as we are
confident of additional growth in 2021/22.
For more information contact:
Victoria PLC
Geoff Wilding, Executive Chairman
Philippe Hamers, Group Chief Executive
Michael Scott, Group Finance Director +44 (0) 1562 749 610
N+1 Singer (Nominated Adviser and Joint
Broker)
Rick Thompson, Phil Davies, Alex Bond +44 (0) 207 496 3095
Berenberg (Joint Broker)
Ben Wright, Mark Whitmore, Tejas Padalkar +44 (0) 203 207 7800
Peel Hunt (Joint Broker)
Adrian Trimmings, Andrew Clark +44 (0) 207 418 8900
Buchanan Communications (Financial PR)
Charles Ryland, Chris Lane, Tilly Abraham +44 (0) 20 7466 5000
About Victoria
Established in 1895 and listed since 1963
and on AIM since 2013 (VCP.L), Victoria
PLC, is an international manufacturer and
distributor of innovative flooring products.
The Group, which is headquartered in Kidderminster,
UK, designs, manufactures and distributes
a range of carpet, flooring underlay, ceramic
tiles, LVT (luxury vinyl tile), artificial
grass and flooring accessories.
Victoria has operations in the UK, Spain,
Italy, Belgium, the Netherlands and Australia
and employs approximately 3,400 people
across more than 20 sites. Victoria is
the UK's largest carpet manufacturer and
the second largest in Australia, as well
as the largest manufacturer of underlay
in both regions.
The Group's strategy is designed to create
value for its shareholders and is focused
on consistently increasing earnings and
cash flow per share via acquisitions and
sustainable organic growth. (Further information
about Victoria can be found on its website,
www.victoriaplc.com.)
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