Victoria Share Discussion Threads

[bouleversee] 25/9/2023 22:43

I have held shares in VCP for many years, long before Wilding came on the scene.
I have never shorted any company and don't trade. I buy and hold, which used to pay but in these days of shorters and algorithms quite often doesn't. I'd love to believe that everything at VCP is hunky dory but I find refusing to supply info to auditors and the devious manoeuvres re the claimed acquisitions of companies they already owned very worrying and I should not be surprised if time shows that some fiddle has been going on, though I hope for my family's sake that will prove not to be the case.

[extrader] 25/9/2023 21:33

Hi BB

I have no position in VCP either way, but your summary of the Iceberg report doesn't reflect its contents or claims.

The claims it makes haven't -AFAICS- been addressed.

I'm more than happy for you to correct my understanding.

GL

[black boulder] 25/9/2023 20:42

The company has provided a full statement regarding the audit issues. In summary;

The issues apply only to one very small subsidiary (Hanover), which represents “less than 1.25% of total group revenue”, and less than £400K of payments that were applied to Hanover customer accounts could not be properly reconciled to original invoices. In other words, the issue is quite immaterial and doesn’t change the underlying value of the group whatsoever, despite the shorts’ desperate attempt to make it sound like it does.

“There is no wrong-doing at Hanover and nor are the auditors alleging this”.

The company has “identified the issue, allocated additional finance resources, and is putting appropriate controls in place and the issue is not ongoing.”

The scope of the audit was limited by the company because it became obvious that the auditors were not going to get to the bottom of the immaterial issue they were digging into in time to meet the company’s statutory obligation of publishing the audit report by the end of September, six months after the balance date, which could have been a more significant problem.

It is interesting to note that the same shorts have in the past made a huge fuss about the shorts driven “Iceberg Report” which ridiculously claimed in another desperate attempt to discredit the company that Hanover didn’t even exist as an acquisition. The auditors have clearly had Hanover under the microscope for months, and have concluded that a very small percentage of its revenue cannot be properly reconciled to individual invoices, clearly confirming that Hanover does exist. The same shorts that were previously urging that the shares were over-valued because Hanover doesn’t exist are now urging that the shares are over-valued because a very small percentage of Hanover’s revenue cannot be reconciled.

[rucellai] 25/9/2023 18:49

Perhaps you will find this post interesting:

“People just need to take a deep breath before they get taken advantage of by short-sellers - many of whom are writing on these message boards - whipping up hysteria to make a profit at ordinary shareholders expense.

So here are some facts instead of the emotional speculation seen today:

1. The results RNS published two weeks ago and the Annual Report sets out the issues in great detail, so there is no mystery - the company has been open with investors.
2. The audit opinion clearly states that Victoria’s financial statements are true and fair and the limitation applies solely to incomplete accounting records at a small acquisition, Hanover Flooring.
3. The issue involves less than £400,000 of customer payments that had not been allocated to specific invoices. Importantly, all the payments due from customers have been received - there is no missing money and there is no allegation of intentional wrongdoing - this is simply a case of inadequate record-keeping at this particular subsidiary.
4. Victoria has already addressed the issue and allocated additional resources to Hanover alongside engaging a Big-Four firm to help upgrade the accounting systems and processes at the business.

Many times, ‘where there’s smoke, there’s fire’. In this instance I think the smoke is emanating from a bunch of weed-smoking short-sellers!”;

[bouleversee] 25/9/2023 17:50

Unless I have misunderstood it, it was the main board who refused to provide further audit evidence.

[bda3490] 25/9/2023 17:27

I hardly think that it’s normal for susidiary management to refuse to provide audit evidence and for the main board to back them.

Nor that it takes 2 years to have accounts in place ! Or simply getting a separate back account ! And Hanover was the second acquisition the first was Ezi - underlay.

Anyway the main point of the auditors report was probably to not “high risk” on going concern.

Someone loves to buy this stock

[extrader] 25/9/2023 15:31

GT are a bit conflicted, since they allegedly failed to pick up the 2 x questionable acquisitions subject of Iceberg's article, one of which is named again in the current furore.

Do they 'double down' or 'fess up ?

Tough call.

[babbler] 25/9/2023 15:11

VCP have commented on the article just not via rns. It's nothing. Nada. Not to worry about.

[bouleversee] 25/9/2023 14:48

The disclaimer is almost as infuriating as the information contained in the article.
I certainly think the FCA or other appropriate authority should be looking into this although I expect that would entail waiting in a long queue as with every other organisation one has to deal with these days.

I wonder how Wilding was able to afford such an expensive yacht.

[rotrader] 25/9/2023 14:27

In response to the FT Alphaville article, Victoria said: 'There is no wrong-doing at Hanover and nor are the auditors alleging this. Hanover's issue was predominantly one of having heightened financial risk due to inadequate accounting records - a situation that is regularly found when smaller businesses are acquired as their standard of financial controls and record keeping often don't match the high levels we have across the rest of the group.'

[topvest] 25/9/2023 14:24

I am not surprised this has surfaced. The highly regarded FD left to take up a position at Eurocell a year ago. I remember thinking at the time that this was a big red flag as Victoria are much bigger than Eurocell.

I previously concluded that Wilding probably likes to quote Buffett and Munger as a cover for his slightly dodgy operations. He is a shrewd operator that is clear and has done an impressive job here, but what about his integrity...has he got any? Shareholders will find out in the fullness of time. I am still not sure to be honest, but I am 80:20 no integrity:integrity. That's why I exited a while back.

[rotrader] 25/9/2023 14:22

I'm still here. Expected you to gloat but we will all have to wait and see the outcome.If it's as serious as some people are making out then surely it would have been suspended.I find it difficult to understand why people slate VCP when they hold no position.

[parvez] 25/9/2023 13:45

Extrader Post 2494. Thanks for this. I read the article and extremely fishy. Wonder if the authorities will get involved. Interesting conclusion from article too.

[babbler] 25/9/2023 13:39

In response to the FT Alphaville article, Victoria said: 'There is no wrong-doing at Hanover and nor are the auditors alleging this. Hanover's issue was predominantly one of having heightened financial risk due to inadequate accounting records - a situation that is regularly found when smaller businesses are acquired as their standard of financial controls and record keeping often don't match the high levels we have across the rest of the group.'

[babbler] 25/9/2023 13:38

https://www.sharesmagazine.co.uk/news/shares/shares-in-carpet-group-victoria-slump-as-media-report-highlights-audit-issues

[extrader] 25/9/2023 13:34

'Google is your friend'

hxxps://iceberg-research.com/2022/08/03/victoria-plc-vcp-ln-mites-under-the-rug/

I've since seen that Lucian Miers has also written about VCP, FWIW.

HTH

[bouleversee] 25/9/2023 12:46

Extrader post 2489

That certainly does make it very fishy. Where can one read about that?

[babbler] 25/9/2023 12:23

Why would there be an rns? It was all reported almost TWO WEEKS AGO in the results.The fact they decided to point it out today as part of a short attack is neither here nor there. It failed too now and is back at near evens. What an op that wasIIs didn't care. They tried to scare PIs. It worked for some. Ouch.All was there in the results almost 2 weeks ago as I say

[velocytongo] 25/9/2023 12:17

Why is there no RNS? FT reporting this but surely the LSE should know first!

[sbb1x] 25/9/2023 11:58

550 to 411 back to 550 .Saw some big lumps buying into this today.

[extrader] 25/9/2023 11:29

A 30 second search on google 'Victoria (LON:VCP) vcp audit issues' threw up this short position

Victoria Plc ($VCP.LN): Mites under the Rug | Iceberg Research (iceberg-research.com)

suggesting some irregularities, involving 2 specific acquisitions

"Companies Victoria claimed to have bought were in fact its own existing subsidiaries.

Victoria made these entities look unrelated i.e., their names were changed before ‘acquisition’."

One of these is Hanover Flooring Limited, flagged in today's FT article.

No position.

[bulltradept] 25/9/2023 10:27

No statement from Mgt? Mmmmm

[buywell4] 25/9/2023 10:11

To read the FT article Google “Victoria plc”, select the news tab and it shows the article in full. Only a small holding for me, and I’ve sold this morning.

[parvez] 25/9/2023 10:08

Sounds like expanded too quickly through acquisitions and have been caught out! How can they get this so wrong!