Victoria sees full-year profit ahead of expectations for a fifth consecutive year

The carpets group also said it has invested a significant amount of management focus during the past year identifying additional suitable acquisition opportunities, pointing out that shareholders should anticipate further acquisition-led growth focused on Europe

Victoria said ongoing operational improvements in logistics, procurement, and production efficiencies are expected to continue to deliver further organic earnings growth

Victoria PLC (LON:VCP) expects its revenue and underlying pre-tax profit to be ahead of consensus market expectations for the financial year ended 31 March 2018 and said shareholders should anticipate further acquisition-led growth focused on Europe.

The AIM-listed firm said its full-year performance has continued to deliver like-for-like growth, gains in market share and operational synergies, including the rationalisation of its UK manufacturing facilities which has positively impacted gross profit margin and reduced overheads since being implemented.

READ: Victoria expects full-year profits to be “comfortably ahead” of forecasts helped by acquisition synergies

The carpets manufacturer said the trading performance of the two ceramics business it acquired in late 2017 has also been encouraging and consistent with expectations.

Victoria said in line with its strategy to diversify both geographically and by product category, nearly 60% of the firm’s earnings are now generated from outside the UK and are spread across several product categories, reducing group’s overall operational risk.

It noted that ongoing operational improvements in logistics, procurement, and production efficiencies are expected to continue to deliver further organic earnings growth over the coming 12 months.

Additionally, Victoria said it has invested a significant amount of management focus during the past year identifying additional suitable acquisition opportunities, pointing out that shareholders should anticipate further acquisition-led growth focused on Europe.

Geoff Wilding, Victoria's executive chairman, said: “"The Board is encouraged by 2018 trading to date. Together with progress on ongoing internal initiatives to deliver synergies and revenue growth, and the very attractive acquisition prospects already identified, the Board is confident it will deliver another year of significant, earnings-accretive growth in the 2018/19 financial year."

The group expects to announce its preliminary results for the year ended 31 March 2018 in July.

In mid-morning trading, Victoria’s shares were up 3.1% to 765p.