Victoria “facing some real challenges”
CARPET manufacturer Victoria is continuing to struggle. Its revenue was down by 7.8% for the half year to September 29.
Revenue declined to £35.99m over the period and the firm’s debt increased to £8.35m.
Group operating profit before exceptional items fell 94.3% from £1.85m to £0.11m while group profit before tax and exceptional items decreased from £1.72m to a loss of £0.07m.
After exceptional items, the group recorded a loss before tax of £1.53m, compared with a £1.27m profit before tax in the prior year H1.
Chairman Geoff Wilding said: “Victoria is facing some real challenges. The group is experiencing strong economic headwinds in each of its major markets, has a cost structure that is too high for its current level of business, limited competitive advantages, excessive debt levels in the UK, surplus production capacity (in a sector with abundant surplus production capacity), and a considerable oversupply of stock in the UK.
“Despite these issues, and the consequential poor results, we should remember that Victoria is well known for producing superb quality carpets, has an enviable reputation for service, and employs some talented and committed people.
“Since our appointment on 3 October, we have begun to build on these foundations to address the key issues facing the business.
Our plans for the group will take time to impact the financial results and it is our view that, at best, the group will break even (before exceptional items) for the full year.
“Furthermore, in restructuring the group, it is likely that exceptional items and provisions will be incurred in the second half of the current year that will materially impact the group’s present net asset value.”
Now the Kidderminster firm – which has spent much of the year consumed by a bitter battle for boardroom control which has only recently been resolved – is planning to move its listing from the main Stock Exchange to AIM.
