Victoria: we will deliver
Flooring group Victoria has told shareholders that it will deliver the promised improvement in margins.
‘Current trading is consistent with our previous trading update of 18 February 2019, and that the Group's performance for the financial year ended 30 March 2019 is expected to meet consensus market expectations,’ it says.
‘The strategy adopted last financial year to drive top line growth, is continuing to deliver in the current calendar year, with like-for-like revenue gains across the group continuing to be plus 3%. Management remain confident that this growth is sustainable for the foreseeable future.
‘Importantly, the various management actions to continue to grow operating margins, which were set out in some detail in the February market announcement, have been completed as scheduled and are having the positive impact expected. As a consequence, it is expected that the group's margin increase of over 100bps in the 2019 financial year will be compounded by a further circa 100bps increase in the 2020 financial year. Having secured new long-term debt financing in April 2019, the Group is well-placed to continue to create wealth for shareholders from organic and acquisition-led growth.’
‘Shareholders can be confident margins are steadily improving alongside continued market share growth,’ says Philippe Hamers, Victoria group chief executive.
The refinancing saw it secure long-term funding for five years to 2024 to replace the group's existing €445m facility. The commitment has been provided by Credit Suisse, working alongside the group's existing banks, which continue to provide funding to the business.
In November the group abandoned plans to refinance its borrowings with a €450m bond.