Floorcoverings group Victoria PLC has reported a growth in sales and profit.
According to its preliminary results for the year ended 2 April 2022, total sales rose 54% to just over £1bn from £662.3m in 2021.
Underlying EBITDA increased 27.8% to £162.8m from £127.4m, while pre-tax profit resulted at £73.8m, up 47.3% from £50.1m recorded the previous year.
The growth marked a ninth consecutive record year for Victoria in terms of revenue and underlying operating profit, despite challenging operational conditions due to supply chain constraints and significant inflationary pressures.
During the year, Victoria completed five acquisitions – one in the UK & Europe Soft Flooring division, three in the UK & Europe Ceramic Tiles division, and one in the US forming a new North America division.
Within its UK & Europe Soft Flooring division, LFL revenues increased by 31% whilst maintaining operating margins, despite inflationary pressures. Victoria completed the relocation of its prestigious Westex brand manufacturing to new production facilities in Dewsbury, Yorkshire. The significantly improved productivity at the new site has lifted operating margins.
Meanwhile, high-speed tufters and a beaming facility were installed in the Abingdon plant in Wales to enhance productivity, enabling smaller production runs to be efficient, enhancing productivity and reducing working capital.
Geoff Wilding, Executive Chairman of Victoria PLC commented: “Victoria continues to be in an enviable operational position thanks to the achievements of our management team, who have successfully managed a year that has seen the highest inflation in a generation alongside massive disruption to global supply chains.
“This year they remain laser-focussed on integration of recent acquisitions and execution of detailed synergy plans that will drive higher productivity, lower costs, and better customer service. I remain confident Victoria will continue to create wealth for shareholders.”
In current trading, Q1 FY2023, Victoria said overall revenue and earnings during the first quarter of the financial year were in line with original budget expectations.