Carpet group bucks trend to enjoy strong year
CARPET maker Victoria exceeded its own expectations today as it posted a 27% rise in profits thanks to a strong performance from its Australian operation.
Announcing its preliminary results for the year ended March 29 2008 the group, which employs more than 100 people at Westwood Yarns in Holmfirth, near Huddersfield, said that it had seen another year of “solid growth”.
Victoria said that despite the difficulty of the current markets a strong product offering had helped it to increase turnover by 11.3% to £61.7m while pre-tax profits increased by 27% to £3.5m
The company said that it had reduced its debt by £2.1m and proposed a final dividend of 14p per share, an increase of 12%.
Carpet sales within the UK were up 6.8% at £24.9m, in a market which was estimated, by management, to be down by around 5%, whilst operating profits were up 9.8% to £1.3m
Victoria said its Australian operation had enjoyed another year of excellent growth with revenues up 20.1% to £28.5m and operating profit up 46.5% to £3.0m.
In contrast export sales to Ireland were weaker in the year falling from £4.4m to £3.51m partly due to poor market conditions and the strength of the pound against the dollar.
Chairman Alexander Anton said: “With all the gloom and doom around, I am delighted to be able to declare a much improved result for the year ended 29 March 2008. We have strong products, unrivalled knowledge and expertise, and a passion for customer service that means we are as well placed as any to deliver growing returns to our Shareholders. The Board believes that the group has an advantage within the sectors in which it is positioned. The businesses have a strong and experienced management team who are focused on winning market share.”
He added that Victoria’s businesses have a current and fashionable product offering which is sold through higher margin distribution channels and have a highly efficient manufacturing operation.
Mr Anton also said that a major investment in the latest Tufting machines would help it to increase its market share in Australia and New Zealand.
The company also announced that it had signed an initial three year exclusive distribution agreement with Mannington Mills – a specialist American carpet tile and flooring manufacturer – to market its producers in the UK, Ireland and France.
