Solid performance by flooring firm against ‘challenging’ backdrop

Flooring specialist Victoria has delivered a strong first half performance, driven by organic growth and an £86m acquisition.

Kidderminster-based Victoria, which bought Spanish tile manufacturer Cerámica Saloni last year, saw revenue rise 16% in the 26 weeks to the end of September, to £315.9m from £273.4m.

Operating profit rose to £23.8m from £13.6m while underlying profit before tax came in at £27.5m, down slightly from £28.2m relating to increased interest costs from its recent bond issue and the additional borrowings following the acquisition of Saloni.

Geoff Wilding, executive chairman of Victoria, said: “Victoria has delivered both revenue growth and margin growth in the first half of our 2020 financial year, in challenging market conditions.

“Alongside these organic-led gains, we also made a small acquisition in Spain, which, following completion of its integration in the first quarter of next year, is expected to contribute meaningful earnings to Victoria due to operational synergies that will result from the integration.

“We were also pleased to successfully complete our bond issue in July, as this provides the group with secure, long-term financing to support our continued organic and acquisition-based growth.”