Victoria Share Discussion Threads

[alemein] 19/7/2017 09:51

G Tuft is the acquisition - waiting for the end of redundancy consultations at Victoria Carpets before the announcement (underhanded)All in my own personal opinion of course

[wingspan] 18/7/2017 14:33

Alemein...what makes you say that?

Given you were "out" on one of your last posts...Are you now back in if you think they are going to do another acquisition?

[alemein] 18/7/2017 12:48

Another acquisition soon - announcement maybe after the finishing of production at Victoria Carpets IMHO

[wingspan] 17/7/2017 12:46

Bouleversee,

Naturally, all the below very much my own opinion and qualified as an enthusiastic outlook.

Apologies for not replying sooner...I don't check these boards all that often...I will expand:

Mohawk Industries...US flooring giant with a mkt cap of 18 bln dollars

Part of the narrative around the VCP proposition has been (and I stress has been) that at some point along the growth curve the company becomes attractive to a larger player who wishes to have a presence in Europe (who cannot get it for himself...think large predator seeking very small prey).

Mohawk was often touted as the buying company...indeed, I heard that immediately after Brexit they had landed the corporate jet somewhere in Oxfordshire with a view of looking at cheap companies (both in shrinking value immediately post Brexit, and also with increasing currency purchasing power of the dollar relative to sterling).

The inference I picked up was that a company like Mohawk who wanted to build presence and market share in Europe would have to go knocking on the doors of small companies here, and trying to acquire them might prove expensive and difficult.

So, why not let someone else do the work, pay them a premium for the task and the roll up gets rolled up into a bigger beast.

I understand that Mohawk lacks on the European Carpet side of things...so the fit could be good.

My hunch is that GW will steer VCP towards a European expansion next...surely the recent hires would indicate this to be the case? The new CEO speaks five Indo-European languages and is a well known person on the European flooring scene.

So, the two halves are as follows:

Grow a UK business that is now being shaped up into an efficient company with great margin through scale and operational efficiency.

Find a good management team who really knows financial structuring, the flooring business in general, the European flooring market, how to structure operational efficiency and how to get deals done. (Sound familiar?)

Then (start the second half):

Acquire into Europe with a great team, repeat the process

And finally sell out to a very appreciative Giant US flooring business looking for an increased presence in Europe who would be unable to go quietly acquiring on their own.

I believe (even if this is just a pipe dream on behalf of the management) that this is the forward aim of GW and his team...if (the consumer needs to keep replacing his carpet every nine years or so) management can deliver this then it will become apparent that what I am writing here is starting to happen.

If this is looking like how the company is going then the shares have a long way to run yet.

If it does not happen then you are in a cash generative and defensive play that is valued cheaply.

My own prediction: 600-700 pence by year end.

All being well by the end of next year then significantly higher than that...

With a close of second half takeover premium (not beyond the realms of impossibility) for all those long standing, and ancient Shareholders who tend to like AIM for its Inheritance tax exemption...then I think that all of us in retirement should sit tight and watch the show.

Wingspan

[rotrader] 15/7/2017 11:01

Are we talking about a buy out - I believe that was always G Wildings end game.

[bouleversee] 15/7/2017 08:53

wingspan -
Could you please explain the Mohawk reference to this ancient long term holder.

[wingspan] 14/7/2017 23:05

Game of two halves...this company has now set its target for the second half in creating shareholder value by becoming a major European flooring business...then Mohawk...

[rotrader] 11/7/2017 17:17

Hit its peak in my opinion.Looking a bit desperate for synergies when they stop manufacturing at Victoria Carpets with there skill base and the most modern machinery- to move it all to Wales , Yorkshire and Portugal.Where next Greece , India and China.All of course in my own personal opinion.

[bouleversee] 04/7/2017 10:20

That's OK. I also hold them!

[alemein] 04/7/2017 09:42

Good question - I suppose the royal warrant for Victoria Carpets is just to supply.
Somebody should tell her, they wont actually be making it.

She might as well buy it from Carpetright ;-)

[bouleversee] 30/6/2017 12:27

Will the Queen still be buying her carpets from them, I wonder?

[rotrader] 30/6/2017 12:14

Kidderminster site will be distributing carpets made by other manufacturers.
Victoria Carpets will be a brand name that sells carpet made from other companies in the group and elsewhere.
In my opinion

[bouleversee] 29/6/2017 22:24

So will Kidderminster be distributing carpets made by other manufacturers then> I had assumed that it was to be a distribution centre for all products inc. carpets made in Cleckheaton and Newport.

I should think the Antons will be laughting all the way to the bank with the performance to date, though it remains to be seen what happens going forward.

[rotrader] 29/6/2017 19:25

I believe that to be the case.
But Victoria Carpets Kidderminster
will not be Manufacturing there own
carpet.
We wait to see whether other manufacturers will be able to match
the expertise and manufacturing quality of the Kidderminster site.
In my opinion.

[bouleversee] 29/6/2017 19:08

I did read somewhere that they would continue to manufacture in Cleckheaton and Newport.

[alemein] 29/6/2017 18:46

How embarrassing - Victoria Carpets - the catalyst for the start of the VCP conglomerate, to stop manufacturing carpet.

Philippe Hamers CEO has to justify his vast salary.
Phil Hartley MD that stalwart of the carpet industry and his puppet Gary Restall FD. aka Laurel & Hardy, seem to have destroyed 100+ plus years of manufacturing carpet between them.
The old Anton's must be turning in there graves.

Stinks off desperation - down hill from this position I believe. I'm out.
IMHO

[rotrader] 26/6/2017 16:53

dyno - rod sunk back into his sewer

[luckymouse] 26/6/2017 15:42

wheres that lying basher tw*t dyno who said this was a bust at 300p lol?

[rotrader] 26/6/2017 14:50

Thanks TIGER good to hear from you.

[castleford tiger] 26/6/2017 11:42

good luck rotrader.

probably met you on tour with Alan when they bought looms from NAVAN >??

TIGER

[rotrader] 23/6/2017 20:56

Good luck Mate.I will stay on the board and give info when I can.

[bouleversee] 23/6/2017 20:44

I'm so sorry to hear that and wish you all the best. I instinctively didn't like the sound of Wilding and supported Bullock but have to admit that he has made a good profit for me so far.. However, it wouldn't totally surprise me if I ended up losing it as I did with Anglo Irish Bank and I don't like to make money at the expense of others. Let's hope it turns out well for both of us. I need to tell my kids that the VCP shares I bought for them recently are losing them money. they won't be pleased.

[bouleversee] 23/6/2017 16:56

OK, thanks. So why has it dropped when their profit forecast was so optimistic?