We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Victoria Plc | LSE:VCP | London | Ordinary Share | GB00BZC0LC10 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -14.00 | -6.39% | 205.00 | 205.00 | 207.00 | 221.50 | 199.80 | 217.50 | 707,145 | 16:35:08 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Carpets And Rugs | 1.48B | -91.8M | -0.7982 | -2.57 | 236.35M |
From Apr 2019 to Apr 2024
TIDMVCP
RNS Number : 7662P
Victoria PLC
22 November 2016
22 November 2016
Victoria PLC
('Victoria', the 'Company', or the 'Group')
Interim Results
Strong Performance Continues - Well Positioned For Further Growth
Victoria PLC (LSE: VCP) the international designers, manufacturers and distributors of innovative floorcoverings, is pleased to announce its consolidated interim results for the 26 weeks ended 1 October 2016.
Financial and Operational Highlights
Continuing operations H1 FY17 H1 FY16 Growth Revenue GBP153.4m GBP105.6m +45% Underlying EBITDA(1) GBP20.2m GBP12.6m +60% Underlying operating profit(1) GBP14.4m GBP7.9m +82% Operating profit GBP12.0m GBP6.4m +88% Underlying profit before tax(1) GBP12.3m GBP6.4m +92% Profit before tax GBP8.4m GBP3.9m +115% Net debt GBP67.7m GBP80.5m -16% Adjusted net debt / EBITDA(2) 1.93x 2.25x Earnings per share(3) : - Basic adjusted 10.43p 6.59p +58% - Basic 6.57p 0.88p +647%
Victoria's successful growth has continued:
-- Group revenues for the six months ending 1 October 2016 grew by 45% from GBP105.6m to GBP153.4m
-- Like-for-like revenues grew by 8.0% (4.9% on a constant currency basis)(4) -- Underlying operating profit increased from GBP7.9m to GBP14.4m -- Underlying profit before tax substantially increased from GBP6.4m to GBP12.3m
-- Net debt as at the half year was GBP67.7m, representing a very comfortable 1.93x annualised EBITDA(2) (2015 H1: 2.25x)
-- Acquisition of Ezi Floor on 30 September 2016 for initial cash consideration of GBP6.5m and deferred consideration of GBP6.5m, plus contingent cash consideration of up to a further GBP6.5m wholly dependent on improved EBITDA over the next four years
1. Underlying performance is stated before the impact of exceptional items, amortisation of acquired intangibles and asset impairment within operating profit. Underlying profit before tax and adjusted EPS are also stated before non-underlying items within finance costs (comprising mark-to-market adjustments, BGF redemption premium charge and deferred consideration fair value adjustments)
2. Adjusted net debt / EBITDA as measured in relation to the Group's bank facility covenants
3. Basic and basic adjusted earnings per share calculations set out in Note 7
4. Like-for-like revenue growth based on a complete half year of revenue for all businesses acquired excluding Ezi Floor. Figures are adjusted for the 26 week period to 1 October 2016 as compared to the 27 week prior period
Geoff Wilding, Executive Chairman of Victoria PLC commented:
"During the last six months we remained focused on executing our plan, with the acquisition of Ezi Floor extending the Group's underlay offering and earnings. The Board continues its effective cash management whilst at the same time being quick to identify and implement potential commercial and margin enhancing synergies across the Group as we gain market share both in the UK and Australia. With no shortage of acquisition opportunities in the UK and Europe, the Board is confident it can continue to grow Victoria and create more wealth for shareholders."
For more information contact:
Victoria PLC Geoff Wilding, Executive Chairman Michael Scott, Group Finance +44 (0) 15 Director 6274 9300 Cantor Fitzgerald Europe (Nominated Adviser & Broker) Rick Thompson, Phil Davies, Michael Reynolds (Corporate Finance) +44 (0) 20 Mark Westcott, Caspar Shand- 7894 7000 Kydd ( Sales) finnCap (Joint Broker) Matt Goode, Grant Bergman (Corporate Finance) +44 (0) 20 Tim Redfern (Corporate Broking) 7220 0500 Buchanan Communications Charles Ryland, Victoria Hayns, +44 (0) 20 Jane Glover 7466 5000
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Chairman's Statement
The first half of this financial year was another successful trading period of continued growth and performance for Victoria. Despite the prognostications of the doom-sayers, Brexit has had no discernible impact on demand for our products in the UK with like-for-like revenues up 3.5%. Growth in Australia continues apace (up 8.9% AUD like-for-like). We remain confident in achieving all of our objectives for the financial year.
Ezi Floor
Underlay is sold alongside nearly two-thirds of carpet sales in the UK and, as such, some 18 months ago we formed the view that an underlay manufacturer would be an ideal addition for Victoria.
September 2015 saw the initiation of this strategy, with the acquisition of underlay manufacturer Interfloor. Over the last year, in particular with a focus on minimising costs, Interfloor has become a highly valuable contributor to the Group's earnings.
Following the success of Interfloor, we acquired another underlay manufacturer, Ezi Floor, on 30 September this year. This is a very entrepreneurial and successful business and its acquisition means Victoria is now able to provide a full range of underlay products across the market. Whilst, as with previous acquisitions, Interfloor and Ezi Floor will remain largely independent in terms of marketing and sales, we are highly confident operational synergies can be achieved between these two businesses and believe Ezi Floor will also make a material contribution to Victoria's earnings.
Acquisitions
Buying a company is easy; making it successful is another matter entirely. Many acquisitions fail to meet expectations and, understandably, many investors are sceptical of a business plan that incorporates acquisitions as part of its strategy. I have completed literally dozens of acquisitions in my business career, making my share of mistakes, but the end product achieved in several sectors over many years has been the creation of significant shareholder wealth.
So, the fact remains that acquisitions can be - and have been - a powerful tool for growing a business and opening new market opportunities.
Having said that, we have made just six acquisitions in four years. This steady pace enables us to ensure each acquired business is properly integrated into Victoria before we proceed with securing the next earnings enhancing deal.
At the risk of boring shareholders with repetition, let me once again set out the key criteria Victoria uses when assessing a potential acquisition opportunity. This list is not exhaustive and sometimes we will not acquire a business that meets all our criteria simply because of some indefinable factor that makes us uncomfortable with proceeding.
1. We never buy struggling businesses or turnarounds. The time and energy expended on a turnaround is rarely worth it;
2. Modern, well-equipped factories. As a company, Victoria is extremely focussed on cash generation. It is free cash that allows us to pay down debt, fund growth, whether acquisitions or organic, and progressively return capital to shareholders through dividends or share buybacks. So, the last thing we want to have to do after buying a business is spend all the cash it generates bringing the factory up to standard.
3. Committed, talented and honest management. Anyone can lease a factory and buy the machinery to make carpet (or other flooring). The difference between the average business and the extraordinary businesses Victoria acquires is the management;
4. Broad distribution channels. Victoria's sales are overwhelmingly made to literally thousands of retailers. We like the security this diversity provides; and pay close attention to customer concentration when considering a potential acquisition.
5. A fair price. To quote Warren Buffet, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. We recognise that quality businesses are rarely 'cheap' but shareholders can take comfort from the fact that we will not overpay. Ever.
Debt
Debt is a business tool like any other. Properly used it can transform growth and shareholder returns and, given the very high levels of cash generation by the business, Victoria makes use of prudent levels of debt to grow the business and improve earnings.
We have consistently demonstrated over the last four years that, while there is a significant seasonal profile in Victoria's net debt (our working capital levels peak in September each year due to the increase in demand during the pre-Christmas rush, plus the timing of our deferred consideration payments are substantially weighted to H1), overall cash generation is aligned to annual earnings. Management across the entire Victoria Group is very focussed on cash generation, which gives the Board the confidence to appropriately deploy debt to fund acquisitions.
Outlook
Both markets in which Victoria trades - the UK and Australia - continue to perform well.
The Australian flooring market is experiencing very good demand from consumers. Although Australia housing stock is about one-third that of the UK, the houses themselves are about three times the size of the average UK house and therefore the addressable market is quite similar in size. I have been delighted by the performance of both our historical business in Australia and Quest, the acquisition we made in August 2015.
The UK, which is about 75% of our business, also continues to trade well. Brexit has had no discernible impact on demand for product and, with some 60% of carpet sold in the UK imported - primarily from Europe - weaker Sterling has benefited us by making our main competitors product materially more expensive whilst less than 20% of our cost base is in Euros or US dollars.
Unlike most other retail purchases, consumers typically only decide to invest in a new carpet for their home once every seven to nine years. As a result, consumers have little awareness as to what a square metre of carpet "should" cost. It is for that reason that the price at which we can sell product is governed moreover by the price point of our competitors than consumers expectations. This, therefore, makes it easier to pass on any production-based inflationary pressures due to all manufacturers broadly being in the same position; all seeking to increase prices at similar inflection points.
In the same regard, as consumer spend for carpet averages at GBP300-500 per room, any marginal increase in price per square metre will have limited impact on them deciding whether or not to proceed with the purchase.
Nonetheless we continue to maintain tight control over costs and inventory to ensure that the Group is well positioned should selling conditions change. To that end, I thought it might be helpful for shareholders to understand the level of variability in our cost base. Victoria is more lowly geared operationally than I suspect some shareholders appreciate. Over half of Victoria's cost base fluctuates directly with sales (e.g. raw materials and energy) and a further circa 30% is capable of being varied within a few weeks (e.g. labour, logistics and marketing costs), should conditions change.
Growth in earnings per share will continue from both organic improvements and acquisitions. There is no shortage of opportunities both in the UK and Europe - although we take care to only proceed once we are confident the last acquisition has been properly integrated. Our strong positive cash-flow, together with supportive bankers and shareholders ensure further acquisition-based growth can be funded. By maintaining very strict criteria and strong price discipline, I am confident acquisitions will continue to be earnings enhancing and a useful tool to both strengthen the Group and create wealth for shareholders.
Therefore, once again, I am pleased to say the Board faces the balance of the financial year with a positive outlook.
Hot Features
Premium
Condensed Consolidated Income
Statement
For the 26 weeks ended 1
October 2016 (unaudited)
27 weeks ended
26 weeks ended 1 3 October 2015 53 weeks ended
October 2016 (1) 2 April 2016 (Audited)
Non- Non- Non-
Underlying underlying Reported Underlying underlying Reported Underlying underlying Reported
performance items numbers performance items numbers performance items numbers
re-stated re-stated re-stated
Notes GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------------- ------ ------------ ----------- ---------- ------------ ----------- ---------- ------------ ----------- ----------
Continuing operations
Revenue 3 153,405 - 153,405 105,607 - 105,607 255,174 - 255,174
Cost of sales (103,007) - (103,007) (70,365) - (70,365) (169,930) (249) (170,179)
------------------------ ------ ------------ ----------- ---------- ------------ ----------- ---------- ------------ ----------- ----------
Gross profit 50,398 - 50,398 35,242 - 35,242 85,244 (249) 84,995
Distribution costs (29,285) - (29,285) (22,754) - (22,754) (49,852) (157) (50,009)
Administrative expenses
(including intangible
amortisation) (6,997) (2,440) (9,437) (4,732) (1,525) (6,257) (13,753) (3,787) (17,540)
Other operating income 291 - 291 130 - 130 292 - 292
------------------------ ------ ------------ ----------- ---------- ------------ ----------- ---------- ------------ ----------- ----------
Operating profit/(loss) 14,407 (2,440) 11,967 7,886 (1,525) 6,361 21,931 (4,193) 17,738
Comprising:
Operating profit before
exceptional items and
intangible
amortisation 3 14,407 - 14,407 7,886 - 7,886 21,931 - 21,931
Intangible amortisation - (1,946) (1,946) - (197) (197) - (2,315) (2,315)
Asset impairment - - - - - - - (160) (160)
Exceptional items 3,4 - (494) (494) - (1,328) (1,328) - (1,718) (1,718)
------------------------ ------ ------------ ----------- ---------- ------------ ----------- ---------- ------------ ----------- ----------
Finance costs 5 (2,116) (1,470) (3,586) (1,531) (975) (2,506) (3,714) (4,734) (8,448)
------------------------ ------ ------------ ----------- ---------- ------------ ----------- ---------- ------------ ----------- ----------
Profit/(loss) before
tax 12,291 (3,910) 8,381 6,355 (2,500) 3,855 18,217 (8,927) 9,290
Taxation 6 (2,802) 395 (2,407) (1,458) - (1,458) (4,302) 961 (3,341)
------------------------ ------ ------------ ----------- ---------- ------------ ----------- ---------- ------------ ----------- ----------
Profit/(loss) for the
period from continuing
operations 9,489 (3,515) 5,974 4,897 (2,500) 2,397 13,915 (7,966) 5,949
Loss for the period
from discontinued
operations - - - - (1,746) (1,746) - (2,132) (2,132)
Profit/(loss) for the
period 9,489 (3,515) 5,974 4,897 (4,246) 651 13,915 (10,098) 3,817
------------------------ ------ ------------ ----------- ---------- ------------ ----------- ---------- ------------ ----------- ----------
Earnings per share
from continuing
operations (2)
basic (pence) 7 6.57 3.23 7.22
diluted (pence) 7 6.46 3.29 7.11
Earnings per share (2)
basic (pence) 7 6.57 0.88 4.63
diluted (pence) 7 6.46 0.98 4.60
------ ------------ ----------- ---------- ------------ ----------- ---------- ------------ ----------- ----------
(1) Re-stated to reflect the new accounting policy adopted in relation to expenditure on sampling assets and the change in accounting treatment of the Business Growth Fund Loan to split the debt and equity components. The effects of these changes were detailed in Note 31 of the Annual Report and Accounts for the 53 weeks ended 2 April 2016.
(2) The prior year earnings per share metrics have been recalculated to reflect the five for one share split which was effective from 12 September 2016.
Condensed Consolidated Statement of Comprehensive
Income
For the 26 weeks ended 1 October 2016 (unaudited)
26 weeks 27 weeks 53 weeks
ended ended ended
1 October 3 October 2 April
2016 2015 2016
(re-stated) (Audited)
GBP000 GBP000
------------------------------------------ ----------- ------------ ----------
Profit for the period 5,974 651 3,817
---------------------------------------------- ----------- ------------ ----------
Other Comprehensive (expense)/income:
Items that will not be
reclassified to profit
or loss:
Actuarial (losses)/gains
on pension scheme (6,550) 329 (152)
Increase/(decrease) in deferred
tax asset relating to pension
scheme liability 1,214 (60) 53
Total items that will
not be reclassified to
profit or loss (5,336) 269 (99)
---------------------------------------------- ----------- ------------ ----------
Items that may be reclassified
subsequently to profit
or loss
Currency translation
gains/(losses) 1,716 (1,533) 708
Totals items that may be reclassified
subsequently to profit or loss 1,716 (1,533) 708
-------------------------------------------- ----------- ------------ ----------
Other comprehensive (expense)/income
for the year, net of tax (3,620) (1,264) 609
-------------------------------------------- ----------- ------------ ----------
Total comprehensive income/(loss)
for the year attributable to the owners
of the parent 2,354 (613) 4,426
---------------------------------------------- ----------- ------------ ----------
Condensed Consolidated Balance Sheet
As at 1 October 2016 (unaudited)
1 October 3October 2 April
2016 2015 2016
(re-stated) (Audited)
GBP000 GBP000 GBP000
-------------------------------------- ---------- ------------ ----------
Non-current assets
Goodwill 48,949 68,389 37,205
Intangible assets 42,174 8,661 43,476
Property, plant and equipment 41,220 35,206 38,811
Investment property 180 180 180
Deferred tax asset 4,818 3,148 3,287
------------------------------------------
Total non-current assets 137,341 115,584 122,959
------------------------------------------ ---------- ------------ ----------
Current assets
Inventories 63,261 54,679 58,970
Trade and other receivables 46,415 45,767 42,562
Cash at bank and in hand 21,501 7,846 19,078
Other financial assets 374 180 384
Total current assets 131,551 108,472 120,994
------------------------------------------ ---------- ------------ ----------
Total assets 268,892 224,056 243,953
------------------------------------------ ---------- ------------ ----------
Current liabilities
Trade and other payables 70,488 60,493 66,913
Current tax liabilities 3,750 2,630 2,891
Other financial liabilities 617 3,644 596
------------------------------------------
Total current liabilities 74,855 66,767 70,400
------------------------------------------ ---------- ------------ ----------
Non-current liabilities
Trade and other payables 14,850 10,735 11,524
Other financial liabilities 87,617 84,690 78,522
Deferred tax liabilities 8,393 1,681 9,129
Retirement benefit obligations 9,734 2,665 3,345
Total non-current liabilities 120,594 99,771 102,520
------------------------------------------ ---------- ------------ ----------
Total liabilities 195,449 166,538 172,920
------------------------------------------ ---------- ------------ ----------
Net assets 73,443 57,518 71,033
------------------------------------------ ---------- ------------ ----------
Equity
Share capital 4,548 4,370 4,548
Share premium 52,467 44,164 52,462
Retained earnings 15,695 8,302 13,341
Other reserves 733 682 682
Total equity 73,443 57,518 71,033
------------------------------------------ ---------- ------------ ----------
Condensed Consolidated Statement of Changes
in Equity
For the 26 weeks ended 1 October 2016
(unaudited)
Share Share Retained Other Total
capital premium earnings reserves equity
GBP000 GBP000 GBP000 GBP000 GBP000
At 28 March 2015 (re-stated) 3,639 10,144 8,915 682 23,380
----------------------------------- -------- -------- --------- --------- --------
Profit for the period to
3 October 2015 ---- ---- 651 ---- 651
Other comprehensive loss
for the period ---- ---- (1,264) ---- (1,264)
Total comprehensive loss ---- ---- (613) ---- (613)
----------------------------------- -------- -------- --------- --------- --------
Issue of share capital 731 34,020 ---- ---- 34,751
Transactions with owners 731 34,020 ---- ---- 34,751
----------------------------------- -------- -------- --------- --------- --------
At 3 October 2015 (re-stated) 4,370 44,164 8,302 682 57,518
----------------------------------- -------- -------- --------- --------- --------
At 28 March 2015 (re-stated) 3,639 10,144 8,915 682 23,380
----------------------------------- -------- -------- --------- --------- --------
Profit for the period to
2 April 2016 ---- ---- 3,817 ---- 3,817
Other comprehensive income
for the period ---- ---- 609 ---- 609
----------------------------------- -------- -------- --------- ---------
Total comprehensive income ---- ---- 4,426 ---- 4,426
----------------------------------- -------- -------- --------- --------- --------
Issue of share capital 909 42,318 ---- ---- 43,227
Transactions with owners 909 42,318 ---- ---- 43,227
----------------------------------- -------- -------- --------- --------- --------
At 2 April 2016 4,548 52,462 13,341 682 71,033
----------------------------------- -------- -------- --------- --------- --------
At 3 April 2016 4,548 52,462 13,341 682 71,033
----------------------------------- -------- -------- --------- --------- --------
Profit for the period to
1 October 2016 ---- ---- 5,974 ---- 5,974
Other comprehensive loss
for the period ---- ---- (3,620) ---- (3,620)
Total comprehensive income ---- ---- 2,354 ---- 2,354
----------------------------------- -------- -------- --------- --------- --------
Issue of share capital ---- 5 ---- ---- 5
Movement in other reserves ---- ---- ---- 51 51
Transactions with owners ---- 5 ---- 51 56
----------------------------------- -------- -------- --------- --------- --------
At 1 October 2016 4,548 52,467 15,695 733 73,443
----------------------------------- -------- -------- --------- --------- --------
Condensed Consolidated Statements
of Cash Flows
For the 26 weeks ended 1 October
2016 (unaudited)
26 weeks 27 weeks 53 weeks
ended ended ended
1 October 3 October 2 April
2016 2016 2016
(re-stated) (Audited)
Notes GBP000 GBP000 GBP000
----------------------------------------- ------ ----------- ------------- ----------
Cash flows from operating
activities
Operating profit from continuing
operations 11,967 6,361 17,738
Adjustments for:
- Depreciation charges 5,829 4,689 10,347
- Amortisation of intangible
assets 1,946 197 2,315
- Goodwill adjustment ---- ---- (43)
- Asset impairment ---- ---- 160
- Profit on disposal of property,
plant and equipment (1) (129) (143)
- Defined benefit pension
cash contributions (221) ---- ----
- Exchange rate difference on consolidation 235 (425) 594 -------------------------------------------- ------ ----------- ------------- ---------- Net cash flow from operating activities before movements in working capital 19,755 10,693 30,968 Change in inventories (1,592) (3,666) (7,767) Change in trade and other receivables (1,190) (683) 215 Change in trade and other payables (3,034) 2,495 7,628 -------------------------------------------- ------ ----------- ------------- ---------- Cash generated by continuing operations 13,939 8,839 31,044 Interest paid (1,841) (1,392) (3,243) Income taxes paid (2,721) (1,627) (3,243) Net cash flow from discontinued operations ---- 65 65 Net cash inflow from operating activities 9,377 5,885 24,623 -------------------------------------------- ------ ----------- ------------- ---------- Investing activities Purchases of property, plant and equipment (6,030) (4,896) (9,752) Proceeds from disposal of Westwood Yarns Limited ---- ----- 431 Proceeds on disposal of property, plant and equipment 48 827 1,034 Deferred consideration and earn-out payments (8,332) (5,155) (7,453) Acquisition of subsidiaries net of cash acquired ---- (16,478) (19,265) Net cash used in investing activities (14,314) (25,702) (35,005) -------------------------------------------- ------ ----------- ------------- ---------- Financing activities Increase/(decrease) in long term loans 7,385 (657) (4,573) Issue of share capital ---- 34,592 43,043 Repayment of obligations under finance leases/HP (475) (539) (650) Net cash generated by financing activities 6,910 33,396 37,820 -------------------------------------------- ------ ----------- ------------- ---------- Net increase in cash and cash equivalents 1,973 13,579 27,438 Cash and cash equivalents at beginning of period 19,078 (8,502) (8,502) Effect of foreign exchange rate changes 450 (177) 142 Cash and cash equivalents at end of period 8 21,501 4,900 19,078 -------------------------------------------- ------ ----------- ------------- ----------
Notes to the Condensed Half-Year Financial Statements
1 General information
These condensed consolidated financial statements for
the 26 weeks ended 1 October 2016 have not been audited
or reviewed by the Auditors. They were approved by
the Board of Directors on 21 November 2016.
The information for the 53 weeks ended 2 April 2016
does not constitute statutory accounts as defined in
Section 434 of the Companies Act 2006. A copy of the
statutory accounts for that year has been delivered
to the Registrar of Companies. The Auditors' report
on those accounts was unqualified and did not include
a reference to any matter to which the Auditor drew
attention by way of emphasis without qualifying the
report and did not contain statements under Section
498(2) or 498(3) of the Companies Act 2006.
2 Basis of preparation and accounting policies
These condensed consolidated financial statements should
be read in conjunction with the Group's financial statements
for the 53 weeks ended 2 April 2016, which were prepared
in accordance with IFRSs as adopted by the European
Union.
The accounting policies and basis of consolidation
of these condensed financial statements are consistent
with those applied and set out on pages 27 to 33 of
the Group's audited financial statements for the 53
weeks ended 2 April 2016.
Having reviewed the Group's projections, and taking
account of reasonable possible changes in trading performance,
the Directors believe they have reasonable grounds
for stating that the Group has adequate resources to
continue in operational existence for the foreseeable
future.
Accordingly, the Directors continue to adopt the going
concern basis in preparing the financial statements
of the Group.
3 Segmental information
The Group is organised into two operating divisions,
the sale of floorcovering products in the UK and Australia.
Geographical segment information for revenue, operating
profit and a reconciliation to entity net profit is
presented below.
Income statement
26 weeks ended 1 October 27 weeks ended 3
2016 October 2015
Unallocated Unallocated
central central
UK Australia expenses Total UK Australia expenses Total
re-stated re-stated re-stated
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue from
continuing
operations 112,082 41,323 ----- 153,405 81,069 24,538 ----- 105,607
------------------ -------- ---------- ------------- -------- ---------- ---------- ------------- ----------
Underlying
operating
profit 11,062 4,141 (796) 14,407 6,420 1,964 (498) 7,886
Non-underlying
operating items (1,578) (368) ----- (1,946) (197) ----- ----- (197)
Exceptional
operating
items ----- ----- (494) (494) ----- ----- (1,328) (1,328)
------------------ -------- ---------- ------------- -------- ---------- ---------- ------------- ----------
Operating profit
from continuing
operations 9,484 3,773 (1,290) 11,967 6,223 1,964 (1,826) 6,361
Underlying
interest
charges (2,116) (1,531)
Non-underlying
finance costs (1,470) (975)
------------------ -------- ---------- ------------- -------- ---------- ---------- ------------- ----------
Profit before tax
from continuing
operations 8,381 3,855
Tax (2,407) (1,458)
------------------ -------- ---------- ------------- -------- ---------- ---------- ------------- ----------
Profit after tax
from continuing
operations 5,974 2,397
Loss from
discontinued
operations * ----- (1,746)
------------------ -------- ---------- ------------- -------- ---------- ---------- ------------- ----------
Profit for the
period 5,974 651
* Loss from discontinued operations relates to the disposal
of Westwood Yarns Limited, which was sold on 2 October
2015.
Management information is reviewed on a segmental basis
to operating profit.
Other segmental
information
26 weeks ended 1 October 27 weeks ended 3
2016 October 2015
Unallocated Unallocated
central central
UK Australia liabilities Total UK Australia liabilities Total
re-stated re-stated re-stated
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Depreciation
(from
continuing
operations) 4,612 1,217 ----- 5,829 3,755 934 ----- 4,689
Amortisation of
acquired
intangibles 1,578 368 ----- 1,946 197 ----- ----- 197
6,190 1,585 ----- 7,775 3,952 934 ----- 4,886
------------------ -------- ---------- ------------- -------- ---------- ---------- ------------- ----------
26 weeks ended 1 October 27 weeks ended 3
2016 October 2015
Unallocated Unallocated
central central
UK Australia expenditure Total UK Australia expenditure Total
re-stated re-stated re-stated
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Capital
expenditure
(from continuing
operations) 5,092 938 ----- 6,030 4,298 598 ----- 4,896
Exceptional Items from continuing
4 operations
26 Weeks 27 Weeks
ended ended
1 Oct 3 Oct
2016 2015
GBP000 GBP000
----------------------------------- ------------------- -------------------
(a) Acquisition costs 494 1,066
(b) Bank refinancing
costs ----- 262
494 1,328
--------------------------------------- ------------------- -------------------
All exceptional items are classified within
administrative expenses.
(a) Professional fees in connection with prospecting
and completing acquisitions during the period.
(b) The prior year bank refinancing cost was in connection
with establishing the Company's multi-currency revolving
facility with existing Group bankers, Barclays and
HSBC.
5 Finance costs
26 Weeks 27 Weeks
ended ended
1 Oct 3 Oct
2016 2015
GBP000 GBP000
----------------------------------- ------------------- -------------------
Interest on loans and
overdrafts wholly repayable
within five years 1,512 900
Interest payable
on BGF loan 572 586
Hire purchase and
finance lease interest 32 45
--------------------------------------- ------------------- -------------------
Underlying interest
costs 2,116 1,531
(a) BGF loan and
option, redemption
premium charge 90 90
(b) Unwinding of present
value of deferred and
contingent consideration 1,317 885
(c) Mark to market adjustment
on foreign exchange
forward contracts 63 -----
------------------------------------- ------------------- -------------------
Non-underlying costs 1,470 975
Total finance costs 3,586 2,506
--------------------------------------- ------------------- -------------------
(a) Non-cash annual cost of the redemption premium
in relation to the BGF loan and option.
(b) Deferred and contingent consideration in respect
to acquisitions is measured under IFRS 3, initially
at fair value discounted for the time value of money.
The present value is then re-measured at each half-year
and year-end to unwind the time value of money. In
addition, any changes arising from actual and forecast
business performance are reflected, although such
movements form an immaterial portion of the overall
annual charge. All such adjustments are non-cash
items.
(c) Non-cash fair value adjustment on foreign exchange
forward contracts.
Tax from continuing
6 operations
26 Weeks 27 Weeks
ended ended
1 Oct 3 Oct
2016 2015
GBP000 GBP000
re-stated
----------------------------------- ------------------- -------------------
Current tax
- Current year UK 2,392 1,637
- Current year overseas 1,187 637
3,579 2,274
--------------------------------------- ------------------- -------------------
Deferred tax
- Credit recognised
in the current year (1,236) (796)
- Adjustments in
respect of prior
years 64 (20)
(1,172) (816)
--------------------------------------- ------------------- -------------------
Total tax 2,407 1,458
--------------------------------------- ------------------- -------------------
The overall corporation tax rate is 22.8% (2015: 22.9%),
representing the best estimate of the weighted average
annual corporation tax rate expected for the full financial
year.
7 Earnings per share
The calculation of the basic, adjusted and diluted
earnings per share is based on the following data:
26 Weeks 26 Weeks 27 Weeks 27 Weeks
ended ended ended ended
1 1 Oct 3 Oct 3 Oct
Oct 2016 2015 2015
2016
Basic Adjusted Basic Adjusted
GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------------- --------- --------- ------------------- ------------------
Profit attributable to ordinary
equity holders of the parent
entity from continuing operations 5,974 5,974 2,397 2,397
Exceptional items:
Amortisation of acquired
intangibles ---- 1,946 ---- 197
Acquisition costs ---- 494 ---- 1,066
Unwinding of present value
of deferred and contingent
consideration ---- 1,317 ---- 885
BGF loan and option,
redemption premium
charge ---- 90 ---- 90
Release of prepaid
finance costs ---- ---- ---- 262
Mark to Market adjustment
on foreign exchange forward
contracts and interest rate
swap ---- 63 ---- ----
Tax effect on adjusted items
where applicable ---- (395) ---- ----
Earnings for the purpose of
basic and adjusted earnings
per share from continuing
operations 5,974 9,489 2,397 4,897
----------------------------------------- --------- --------- ------------------- ------------------
Loss attributable to ordinary
equity holders of the parent
entity from discontinued operations ---- ---- (1,746) ----
Earnings for the purpose
of basic and adjusted earnings
per share 5,974 9,489 651 4,897
---------------------------------------- --- --------- --------- ------------------- ------------------
Weighted average
number of shares
2016 2015
Number Number
of of
shares shares
('000) ('000)
(1) (1)
-------------------------------------- --------- -----------
Weighted average number
of ordinary shares for
the purposes of basic and
adjusted earnings per share 90,967 74,300
Effect of dilutive
potential ordinary
shares:
BGF share options 2,973 1,215
Weighted average number
of ordinary shares for
the purposes of diluted
earnings per share 93,940 75,515
----------------------------------------- --------- -----------
(1) The number of shares in issue increased by a
factor of five on 12 September 2016 following approval
of a five-for-one share split at the AGM on 9 September
2016. The weighted average number of shares in issue
over the period has been determined on this new
basis.
The potential dilutive effect of the share options
has been calculated in accordance with IAS 33 using
the average share price in the period.
The Group's earnings/(loss) per
share are as follows:
2016 2015
re-stated
Pence Pence
-------------------------------------- --------- -----------
Earnings per share
from continuing
operations
Basic adjusted 10.43 6.59
Diluted adjusted 10.10 6.48
Basic 6.57 3.23
Diluted (1) 6.46 3.29
--------------------------------------------- --------- -----------
Loss per share
from discontinued
operations
Basic ---- (2.35)
Diluted (1) ---- (2.35)
--------------------------------------------- --------- -----------
Earnings per share
Basic adjusted 10.43 6.59
Diluted adjusted 10.10 6.48
Basic 6.57 .88
Diluted (1) 6.46 .98
--------------------------------------------- --------- -----------
(1) Earnings for the purpose of diluted (basic)
earnings per share have been adjusted to add back
the Business Growth Fund ('BGF') redemption premium
charge as this cost is only incurred if the BGF
share options are not exercised.
The prior year earnings per share metrics have been
recalculated to reflect the five for one share split
which was effective from 12 September 2016.
8 Analysis of net debt
Capital
At expenditure At
2 under Other 1
April Cash finance non-cash Exchange October
2016 flow leases/HP changes movement 2016
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------------------- --------- -------- ------------- ---------- ---------
Cash 19,078 1,973 ---- ---- 450 21,501
------------------------------- --------- -------- ------------- ---------- ---------- ---------
Cash and cash equivalents 19,078 1,973 ---- ---- 450 21,501
Finance leases and
hire purchase agreements
- Payable less than
one year (596) 264 ---- (280) (5) (617)
- Payable more than
one year (513) 211 (657) 280 (20) (699)
Bank loans
- Payable more than
one year (69,280) (7,385) ---- ---- (1,242) (77,907)
BGF loan
- Payable less than
one year ---- ---- ---- ---- ---- ----
- Payable more than
one year (9,796) ---- ---- (163) ---- (9,959)
Net debt (61,107) (4,937) (657) (163) (817) (67,681)
Prepaid finance costs 1,067 75 ---- (194) ---- 948
Net debt including
prepaid finance costs (60,040) (4,862) (657) (357) (817) (66,733)
------------------------------- --------- -------- ------------- ---------- ---------- ---------
9 Acquisition of subsidiaries
Ezi Floor Limited
On 30 September 2016, the Group acquired UK underlay
manufacturer Ezi Floor Limited, for an initial cash
consideration of GBP6.5m and deferred cash consideration
of GBP6.5m, payable in annual instalments over four
years. Additional contingent cash consideration up
to a maximum of GBP6.5m is wholly dependent on improved
EBITDA over the next four years. The principal activity
of Ezi Floor is the manufacture and distribution
of a range of underlay and underlay accessories for
both the residential and contract markets. Ezi Floor
sells to wholesalers, retail groups, and independent
stores throughout the UK. The acquisition is expected
to be immediately accretive to the underlying earnings
per share of the Company.
The Group results for the 26 weeks ended 1 October
2016 do not include any revenue or profit from Ezi
Floor as it was acquired at the end of the first
half period.
The valuation exercise to identify intangible assets
acquired, as required under IFRS3, has not been finalised
as at the half year. The valuation will be reflected
in the Annual Report and Accounts for the Group for
the year ending 1 April 2017 together with the IFRS
3 disclosures. Accordingly, an element of the Goodwill
recorded on the balance sheet as at 1 October 2016
will be reclassified to Intangible assets once the
IFRS 3 valuation has been completed.
10 Rates of exchange
The results of the Group's overseas subsidiary has
been translated into Sterling at the average exchange
rates prevailing during the periods. The balance
sheet is translated at the exchange rates prevailing
at the period ends:
26 27 53
Weeks Weeks weeks
ended ended ended
1 3 2
Oct Oct April
2016 2015 2016
----------------------------- --------- -------- ------------- ---------- ---------- ---------
Australia (A$) -
average rate 1.8196 2.0489 2.0327
Australia (A$) -
period end 1.6942 2.1544 1.8526
------------------------------- --------- -------- ------------- ---------- ---------- ---------
11 Risks and uncertainties
The Board continuously assesses and monitors the
key risks of the business. The key risks that could
affect the Group's medium term performance and the
factors which mitigate these risks have not changed
from those set out on page 9 of the Group's 2016
Annual Report, a copy of which is available on the
Group's website - www.victoriaplc.com. The Chairman's
Statement includes consideration of uncertainties
affecting the Group in the remaining six months of
the year.
On behalf of the Board
Geoffrey Wilding
Chairman
21 November 2016
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DMMZMZMFGVZZ
(END) Dow Jones Newswires
November 22, 2016 02:01 ET (07:01 GMT)
1 Year Victoria Chart |
1 Month Victoria Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
