Victoria PLC on Tuesday said it has achieved ‘record’ demand in its recent financial year, despite a ‘testing backdrop.’
Shares in the Kidderminster, England-based designer, manufacturer and distributor of flooring were down 12% to 568.00 pence each in London early Tuesday.
In the year ended April 1, Victoria said it saw its tenth consecutive year of revenue and underlying profit growth.
For the first time in the company’s history, the total volume of flooring sold in the financial year exceed 200 million square metres, generating ‘record’ revenue of £1.46 billion. Revenue is up 43% annually from £1.02 billion.
Underlying earnings before interest, tax, depreciation and amortisation rose by 20% to £196.0 million from £162.8 million a year earlier.
Victoria said that the results were achieved despite ‘challenging’ macro-economic conditions. ‘Dramatic increases in the cost of raw materials, unprecedented energy prices, labour cost inflation, subdued consumer demand, and international shipping disruption created a testing backdrop,’ it noted.
It added that there was ‘softer’ demand in the year, but fundamental sectoral drivers sustained long-term, steady growth.
Victoria also said that four major acquisition integration projects are now well ahead of schedule and in their final stages of completion. The acquisitions are expected to deliver a further £20 million per year increase in Ebitda.
Looking ahead, Victoria said its financial outlook is largely based on steady-state demand and underpinned by the various integration projects.
Commenting on outlook, Chair Geoff Wilding said: ‘With all major integration projects in their final stages, we expect FY2024 to be a year of two halves, with stronger H2 earnings as the benefits of the reorganisation are experienced.
‘Further ahead, FY2025 will see the full benefit of the successful acquisitions’ integration with an expected uplift in margins driving an additional increase in earnings and free cash flow,’ Wilding added.
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