RNS Number:6560J
Victory Corporation PLC
04 April 2003

        Victory Corporation plc ("Victory Corporation" or "the Company")

                               Trading Statement



Virgin Cosmetics Direct, which accounts for 80% of our Cosmetics sales,
continues to deliver very strong growth with an overall sales increase of 37%
for the twelve months ended 31st March 2003. Meanwhile, Virgin Cosmetics Retail
stores recorded an 8% like for like sales increase in the year, despite a
challenging high street retailing environment.

During the last six months, Virgin Cosmetics supply chain has been restructured,
in order to achieve tax and cost-efficiencies going forward. A central
warehousing facility opened in Hungary, and our cosmetics supply chain will be
moved to the Far East during 2003. The restructuring of our supply chain has
incurred a number of one-off costs.

Capo, a non-core business, has continued to experience difficult trading
conditions, in a very challenging branded retail clothing sector, with margin
being further eroded. Victory Corporation is in advanced negotiations to sell
the business. With Capo's trading losses and potential sale amounting in total
to #2.9 million of losses, plus the one-off costs incurred in restructuring
Cosmetics supply chain, Victory Corporation's loss for the year will be greater
than market expectations.

With the forthcoming sale of Capo, the Group will concentrate its resources in
growing Virgin Cosmetics Direct which is now the core business and has
significant growth potential. The major shareholder of Victory Corporation,
Virgin Retail Holdings Limited, continue to be very supportive of the strategy
and working capital requirements of the Company.

Management are confident that, with the disposal of Capo and with the efficiency
gains derived from the restructure of the supply chain, the strategy of the
Group will deliver profitable growth going forward.



Enquiries:
John Jackson, Chairman, Victory Corporation plc                    01243 622 226

Clive Bruce, Finance Director, Victory Corporation plc             01243 622 226

Mark Percy, Seymour Pierce Limited                                 0207 648 8700

David Simonson or Clare Maciocia, Merlin Financial Communications  0207 606 1244


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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