‘Laser-focussed’ Victoria to meet £200m profit target

Victoria Group says it will meet profit expectations of about £200m.

The group says its will achieve expectations of sales of £1.364bn – £1.519bn and a range of £196m-£203m for underlying EBITDA.

It says it will deliver its tenth consecutive year of revenue and underlying operating profit growth. Total volume sold will exceed 200million sqm for the first time for the financial year ended 1 April.

‘The directors’ conviction that Victoria is well-positioned to deliver further earnings and cash flow growth in FY24 and beyond is underpinned by the known synergy gains from completion of the Balta re-organisation. Furthermore, whilst the group is not immune to the external factors that impact consumer demand or inflationary pressures, the board is confident that Victoria’s inherently low operational gearing, combined with price increases (where essential), cost savings, and tight supply chain management, will mitigate the financial impact of any macro-economic uncertainty in the year ahead. Victoria remains competitively very well placed in its markets to defend its position and capitalise on opportunities where gaps appear, and the directors are confident in the company’s ability to continue to create wealth for shareholders,’ it says.

‘We are laser-focussed on the reorganisation of Balta and the integration of other recent acquisitions. Completion of these projects is expected to deliver a significant uplift in productivity and cash flow, even during a period of economic uncertainty, which underpins our confidence in outlook for FY24 earnings growth and deleveraging,’ says Geoff Wilding, Victoria Group executive chairman.

The re-organisation will save it at least €15m a year. Production of Balta’s carpets is being moved to the UK, with lower production and transport costs and quicker delivery. 295 jobs will be lost. Rug production is being centralised at the Sint-Baafs Vijve, Belgium site, allowing with moving some production to Turkey, with the loss of 220 jobs.

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