Floorcoverings manufacturer and distributor Victoria PLC has reported a surge in profit and sales as its latest acquisitions are expected to boost its bottom line further.
According to its interim results for the six months ended 1 October 2022, total sales rose 58.7% to £776.1m from £489m against the same period last year. Underlying EBITDA increased 18.5% to £100.1m from £84.5m, while pre-tax profit resulted at £53.1m, jumping 1,731% from its profit of £2.9m.
Victoria said that 7.7% like-for-like organic revenue growth, plus acquisitions, led to the group achieving a record operating performance. This included the completion of the acquisition of the rugs and UK carpet divisions of Balta to make Victoria one of Europe’s largest manufacturers of soft flooring, with revenue for the six months reaching £372m.
“Integration is well underway to realise the material potential synergy benefits of this acquisition. We expect that the integration of our most recent acquisitions will lead to significant growth in profits over the next several years (without the necessity of a significant improvement in macroeconomic conditions). This is currently our team’s primary focus and will remain the focus during the rest of FY2023 and FY2024,” the company said.
“Although macro-economic conditions are challenging, the Board continues to be confident that synergy gains and proactive management actions will enable Victoria’s financial performance for FY2023 to be in line with market consensus expectations.”
Geoff Wilding, Executive Chairman of Victoria PLC, added: “Integration of recent acquisitions is proceeding apace and on schedule. Consequently, the Board believes cash flow, after exceptional costs relating to the integration projects, will be in excess of £100 million in H2.
“In the near term it is likely that disposable incomes in some markets will come under further pressure, from higher interest rates and inflation and the resulting weakening consumer demand may make additional price increases to offset higher input costs more difficult for the Company to implement. Nevertheless, whilst acknowledging these challenges, I am pleased to say that the Board continues to be confident that synergy gains and proactive management actions will enable Victoria’s financial performance for FY2023 to be in line with market consensus expectations and the outlook for the business remains positive.”