Victoria’s share price slide accelerates

Floorcoverings group Victoria has issued a bullish statement to the markets about its prospects as it seeks to halt the slide in its share price.

Its margins are up to 1.5 percentage points below consensus market forecasts, although “margins are still expected to significantly exceed” last year because of growth and a change in its product mix.

However investors have continued the share sell-off this morning, with Victoria’s shares down more than 10% in early trading.

It continues a two-month decline which had already reduced its market value by 28%, £200m, at Friday’s close.

The Kidderminster-based group is focused on “driving sales and market share”, acknowledging this has a knock-on effect on operating margin.

In a statement to the stock market, it said: “The board believes that seeking to increase market share is the correct strategy for the group at this time as, even with current market conditions, the group’s year-to-date revenues are on track to exceed consensus market forecasts, and the group plans to recover the margin investment in stages over the next twelve months.”