Carpet manufacturing firm reports sixth consecutive record year

Kidderminster flooring specialist Victoria’s revenue increased 35% to £574m despite challenging market conditions.

Victoria said it achieved another record year in 2019 making it the sixth consecutive year of growth in underlying earnings and free cash flow per share, and operating margins.

However, while its underlying operating profit was £70.3m up from £48.8m its operating profit was £24m, down 9% from last year’s £26.4m.

A big part of the company’s success has been a significant reorganisation of its UK and European manufacturing footprint and logistics structure completed on schedule and on budget with £12.7m in exceptional reorganisation costs.

“Victoria’s mission statement since October 2012 has been to create wealth for shareholders,” said Geoff Wilding, executive chairman.

“Since that date to 30 March 2019, Victoria’s total shareholder return has been 62.0% per annum, a cumulative 2,183.2%.”

The company invested £21m in growth capital expenditure across the group to accelerate growth, increase margins and cash flow in the years ahead.

Wilding said there also remains an “enormous market opportunity for Victoria to expand both in the UK and internationally, by organically improving margins and earnings still further within our existing business, as well as by acquisition, where we believe opportunities we have identified will make a meaningful contribution to the Group”.

He said the company remains focused on increasing both earnings and free cash flow per share.

“At times, reorganising a factory while still focussed on achieving organic growth felt like conducting open heart surgery while the patient was running a marathon but we are very pleased with the end result.”

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