Shares in floorcoverings group Victoria fell 15% yesterday, wiping off \u00a380m from the company’s market value as investors took a dim view of the company’s decision to grow market share instead of profits.<\/p>\n
Its shares closed last night at a two-year low of 369p, 60% below its price last May.<\/p>\n
The reaction came despite Victoria providing \u201ca considerable degree of granularity about the actions\u201d it had taken with the aim of reassuring shareholders.<\/p>\n
The Kidderminster-based group is forecasting the current financial year, to March, will deliver underlying pre-tax profits that are up to 39% higher than last year\u2019s \u00a340.8m, benefitting from eight months\u2019 contribution from Ceramica Saloni, but below expectations.<\/p>\n
It is forecasting that its strategy focusing on growing market share in flat and falling markets will \u201cmaterially enhance\u201d profits in the next financial year.<\/p>\n
The Kidderminster-based company has been absorbing rising costs in raw materials and says it has been growing revenues in \u201cdifficult market conditions\u201d.<\/p>\n
It estimates the market in the UK and Australia is down 6-8% and is flat in Europe.<\/p>\n
In a statement to the stock market yesterday, Victoria said: \u201cWith the strategy continuing to deliver increasing revenues and meaningful market share gains, the key now is to ensure margins continue to increase.<\/p>\n
\u201cIn the November announcement the Group referenced plans to recover some margin gains temporarily foregone in the drive for top-line growth.<\/p>\n
\u201cAlmost all these actions Victoria planned to take to increase margins have now been successfully completed.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Manufacturer’s shares down 15% as group puts market share ahead of profits<\/p>\n","protected":false},"author":18,"featured_media":2026637,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"coauthors":[81],"class_list":["post-2026627","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manufacturing","tag-featured-story","tag-top-story"],"yoast_head":"\n