Victoria rolls out the red carpet ahead of year end

CARPET manufacturer Victoria is expecting profits to be “materially ahead” of expectations when its financial year closes next week.

The Kidderminster company has been growing through acquisitions and now says the impact is being felt on its bottom line.

Last November it paid £65m for Interfloor Group, which followed the £16.4m purchase of Australian group Quest Carpet Manufacturers last August and a£5.75m deal for the Whitestone Weavers group of companies in January 2015.

In a statement to the stock market, Victoria said: “The group’s recent acquisitions have now been fully integrated and the associated operational synergies have resulted in improved gross profit margins, which the Board anticipates will continue to accrue into 2017.

“In addition, the group’s businesses have seen a strong performance in the key UK and Australian markets.”

It has guided the market to expect profits before tax and exceptional items to be materially ahead of current consensus market expectations. It also said there will be a “material reduction” in group net debt and the net debt to EBITDA ratio since the interim results.

It added that discussions regarding the potential acquisition of Lano Carpets are “ongoing”.