Carpetmaker Victoria on a roll after above-expectation profit forecast

Worcestershire carpet manufacturer and retailer Victoria has forecast that underlying pre-tax profits are expected to be “comfortably ahead” of expectations.

The full year update had an immediate impact on the company’s share price, with a near 8% hike in value in early trading.

The Kidderminster-based business said it had benefited from operational synergies following the integration of recent acquisitions in the UK and Australia.

These have continued to positively impact gross profit margins and overheads throughout the current financial year, said the firm.

It said further improvements were expected in the coming financial year as the group benefitted from the further expertise and input of Philippe Hamers, its new group chief executive, who started with Victoria on March 20 this year.

In outlook, the firm said it remained focused on its strategy to create wealth for shareholders.

“Ongoing operational improvements are expected to continue to deliver very good organic earnings growth over the coming 12 months,” it said.

“Additionally, Victoria has invested a significant amount of time and energy during the past year identifying further suitable acquisition opportunities within Victoria’s existing markets and, importantly, Europe.

“The group’s banks continue to be very supportive and there remains considerable headroom in existing facilities.”

The board said it was confident the business would deliver another year of significant, earnings-accretive acquisition growth in addition to underlying organic growth.