Victoria rebels outline plans for carpet maker’s growth

THE consortium bidding to seize control of Worcestershire carpet maker Victoria has outlined its proposals to shareholders – after accusing the current board of “unjustified accusations, obfuscations, and misrepresentations” in the way it has conducted its affairs.

The consortium is led by former director Alexander Anton and Geoff Wilding, who both resigned as non-executive directors of the company last month in a row over bonuses.

A stormy annual general meeting on August 31 saw all directors but current chairman Katherine Innes Ker voted off the board.

The consortium is now bidding to step into the power vacuum at a general meeting set for October 3 at the Metropole Hotel at the NEC.

In a statement to the London Stock Exchange today Mr Anton and Mr Wilding said: “There have been a lot of unjustified accusations, obfuscations, and misrepresentations made by the company over the last few weeks.

“However, instead of also indulging in mudslinging, character assassination and personal attacks, let’s look at some hard facts.

•        Victoria plc’s profits are lower than eight years ago
•        Your dividend is lower now than it was eight years ago
•        Victoria plc’s return on assets is very poor – just 3.3% last year.
•        In the last four years Victoria Carpets UK has made a profit of just £300k on sales of £114m
•        Over the last four years Executive Directors have taken more out of the company in salaries and benefits (£2.8m) than shareholders have received in dividends (£2.4m).

“So, fundamentally, your decision comes down to this: do you, as a shareholder, want more of the same? Or, do you want a committed and highly motivated team with a proven track record of creating substantial shareholder wealth focussed on improving the value of your shares?”
 
He said the AGM had seen all of the four directors up for re-election voted off the board by votes of between 65% and 80% against them.

“A number of shareholders present at the AGM said they had come to the meeting intending to vote for the existing board.  But, after hearing Geoff Wilding speak (he was given the opportunity to address the meeting), the shareholders realised the new team’s position had been grossly misrepresented by the company and decided to support Alexander Anton and Geoff Wilding and to vote against the directors’ re-election,” added the statement.
 
The new team, which comprises Mr Anton and Mr Wilding plus Andrew Harrison, said its strategy for growth offered more to shareholders.

It said the plan was to grow the company both in the UK and Australia, and that no strategic opportunity was being ruled in or out. It said in particular, strong opportunities existed in Australia where Mr Wilding’s knowledge and expertise would be especially helpful.

The new board would also improve productivity and create new opportunities.