TIDMVCP
RNS Number : 0154V
Victoria PLC
05 August 2022
For Immediate Release 5 August 2022
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
Victoria PLC
('Victoria' or the 'Company' or 'Group')
Purchase of Own Shares
Victoria Plc. announces that yesterday it purchased 32,500 of
its ordinary shares of 5 pence each ("Ordinary Shares") at an
average price of 365.5 pence per share pursuant to the authorities
obtained at the Company's last annual general meeting to make
market purchases up to a maximum aggregate of 11,685,190 Ordinary
Shares.
The Board believes that the current share price is materially
below the intrinsic value of the business and indeed at the current
levels few alternatives exist for capital deployment that will
provide equivalently high, risk-weighted returns.
When making the decision to repurchase shares, the Board
carefully considered the Company's current financial strength and
resources available, its trading outlook, and global economic
uncertainties. As confirmed in the recent FY2022 preliminary
results announcement, Victoria has traded in line with expectations
for the current year and continues to generate significant positive
cash flow. Notwithstanding the consideration paid for the Balta
acquisition in April, the Group remains with more than GBP200
million of liquidity (cash and undrawn credit lines) - an amount
that is expected to increase materially this year.
T he Board emphasises that this is not the start of a
longer-term programme to return capital to shareholders. However,
subject to maintaining strict price discipline and operating within
the regulatory limits , the Company may continue to buy shares up
to the maximum permitted under the current authority provided by
shareholders at the last AGM.
Aggregated information:
Date of purchase 4 August 2022
Number of Ordinary Shares purchased 32,500
Highest price paid per share 369.27p
Lowest price paid per share 353.46p
Volume weighted average price paid 365.49p
The repurchased shares will be held in Treasury, to be
re-deployed when appropriate in a manner that will continue to
create wealth for shareholders. Following the purchase of these
shares, Victoria holds 8,770,685 of its Ordinary Shares in treasury
and has 116,693,982 Ordinary shares in issue (excluding treasury
shares). This figure may be used by shareholders as the denominator
for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest
in, the Company under the FCA's Disclosure Guidance and
Transparency .
Executive Chairman, Geoff Wilding, commented,
"Share buybacks are not something to be undertaken lightly.
However, there are times when the fundamental economics of doing so
are utterly compelling. This is one of those times.
This buyback will result in a transfer of wealth from the
selling shareholders to those that continue to hold their shares.
However, given Victoria recently published its FY2022 results and
provided guidance around expected FY2023 trading, we plan to
continue to take advantage of the opportunity to buy back shares at
levels we believe are materially below the intrinsic value of the
Company."
Transaction details
In accordance with Article 5(1)(b) of Regulation (EU) No
596/2014 (the Market Abuse Regulation) (which forms part of
domestic UK law pursuant to the European Union (Withdrawal) Act
2018), a detailed breakdown of individual trades is available
below:
Number of Ordinary Shares purchased Transaction price (GBp) Time of transaction Trading venue
5,000 353.46p 08:55:55 AIMX
12,500 367.00p 09:39:27 AIMX
5,000 366.19p 10:07:47 AIMX
10,000 369.27p 11:22:25 AIMX
The person responsible for arranging the release of this announcement on behalf of the Company
is Michael Scott, Group Finance Director.
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
Singer Capital Markets (Nominated Adviser
and Joint Broker)
Rick Thompson, Phil Davies, Alex Bond +44 (0) 207 496 3095
Berenberg (Joint Broker)
Ben Wright, Richard Bootle
Peel Hunt (Joint Broker) +44 (0) 203 207 7800
Adrian Trimmings, Andrew Clark
+44 (0) 207 418 8900
Buchanan Communications (Financial PR)
Charles Ryland, Chris Lane, Jack Devoy +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, Turkey,
the USA, and Australia and employs approximately
6,500 people across 30 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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END
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