International expansion weaves growth story at floorings group

Flooring group Victoria has rolled out another set of strong financial figures as it continues to grow organically and internationally.

The Worcestershire-based group bought Spanish group Keraben for £246.5m earlier this month, supported by a £180m fundraising, and followed the £50m purchase of Italian floor tiles group Ceramiche Serra.

Victoria’s executive chairman Geoff Wilding said: “We have had a good, strong start to the year, it’s been really solid. Good strong organic growth, as well as the acquisitions that everyone has come to expect from us.”

Less than half of Victoria’s profits now come from the UK as the group continues its evolution into an international flooring business.

“I like the idea of being a bit more diversified,” said Wilding. “It’s prudent to have exposure to more than one economy.”

Philippe Hamers was appointed as chief executive in March, and he is “already delivering measurable gains across the business” that will continue to increase margins and deliver organic growth.

“We have uncovered some really interesting acquisition opportunities,” added Wilding.

Victoria has shrugged off the problems hitting furniture manufacturers, such as Multiyork and Feather & Black which have fallen into administration, and delivered a 26% increase in underlying pre-tax profits, up to £12.3m in the six months to September.

He said: “The average purchase of carpet is less than £500. It’s not a large purchase, at the mid to high-end of the market where Victoria is focused.

“When people make a decision to refresh their house, the first thing they look at is flooring.”

Analysts Cantor Fitzgerald said: “We continue to believe VCP is well placed for further growth given its expanding international operations, the scope to achieve further cost and margin synergies and the prospect of further domestic and international earnings enhancing acquisitions.”

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