Victoria Share Discussion Threads

[rotrader] 28/7/2017 09:22

I believe the problem is that this comment -

"manufacturing operations in Kidderminster to the Group's two other UK carpet production facilities,"
was written on documents to employees (consultation period) and in an RNS to the stock exchange.
It is clearly not the case - G Tuft are not part of the group.

[wingspan] 28/7/2017 08:59

A...you said the company was behaving in an underhanded manner because they were waiting until an opportune moment to announce a takeover (while within a redundancy scenario).

Broadly, your 1+1 equalled more than 2.

The purpose of my posts was to correct this assumption which Rotrader has now confirmed.

[wingspan] 28/7/2017 08:51

Is it that if there is much needed capacity then why sell an asset that can provide that capacity?

Surely, this is the companies business? Maybe they intend to buy new machinery? Maybe they can optimise better with what they are doing?

Where is the lie ?
And if they are no longer (as you confirm) waiting until the end of the consultation period on redundancy to announce another takeover - where is the underhanded activity?

Is the company now not allowed to sell equipment it no longer wants?

[wingspan] 28/7/2017 08:44

Yes Rotrader...this is what I heard.

So, during this process of rationalisation some machinery is sold to GTuft...

Genuinely: Can someone explain in simple terms why this is underhand, untruthful etc?

What am I missing?

[rotrader] 27/7/2017 20:31

wingspan - Alemein

It was my intention to keep out of your discussion because you both have some valid points. But it has become known to me today, some information that seems to contradict some of the statements made.

The RNS concerning manufacturing and logistics states that -

"The reorganisation of the manufacturing capability, which involves the transfer of manufacturing operations in Kidderminster to the Group's two other UK carpet production facilities, will:

· Rationalise the Group's manufacturing operations to drive further incremental margin uplift.

· Optimise asset utilisation and positively impact manufacturing efficiency to provide significant - and much needed - additional capacity without material capex."

I have been informed today G Tuft (not part of the group)will be taking three tufting machines and the beaming facility.
The rest of the manufacturing machinery will be going to Abingdon Carpets Wales.
Someone is not telling the truth.
IMHO off course.

[wingspan] 25/7/2017 13:14

Sorry A...was trying to soften it... I KNOW that GTuft is a non starter.

[shanklin] 25/7/2017 12:49

Thank you 1boston, that's helpful.

[1boston] 25/7/2017 12:43

Re organic growth, just seen a couple of analyst reports out this morning on VCP: Like For Like revenue up 4.6% and LFL margins up 10.6%. Strong and impressive progress in my view.

[alemein] 25/7/2017 10:48

wingspan

"Our dependency on any one market continues to reduce with more than 30% of the group's earnings now coming from outside the UK. This trend is expected to increase further in 2018."

You have gone from saying that my comments about G Tuft are incorrect to "Let's wait and see on GTuft but I am fairly sure that is a non starter".

But like you say lets wait and see.

You also did comment "Are you interested in undermining all those uk jobs with your posts?"
I can categorically state that is not the case.

Decent results, but as always its knowing when to get out.
Wish you all the best of luck.

[shanklin] 25/7/2017 09:14

Last year's full year results included:

"This growth was primarily a result of the contribution from acquisitions, both in terms of the acquisitions in the year of Quest Carpets and Interfloor Group, and the full-year beneficial impact of Abingdon Flooring and Whitestone Weavers group, which were acquired during the previous financial year.

In addition, the underlying business has continued to perform strongly, delivering average organic revenue growth across the Group of over 3.0%, driven by increased sales volumes."

So VCP have previously given details of organic growth.

[wwick] 25/7/2017 09:14

Got to love GW's closing points:
-- Our dependency on any one market continues to reduce with more than 30% of the group's earnings now coming from outside the UK. This trend is expected to increase further in 2018.
-- We have a strong sales culture; irrespective of title, everyone is a sales person.
-- Our reorganisation lowers costs while increasing cost variability, thereby giving us greater resilience in variable economic conditions.
-- We have done a large amount of prospecting work - primarily in Europe - and are confident of securing some high-quality, earnings-accretive acquisitions.

[bouleversee] 25/7/2017 09:08

Sounds good to me.

[wwick] 25/7/2017 08:53

" Due to timing of the completion dates for the last of these acquisitions being late in the financial year, together with their integration costs, they had little impact on our FY17 net result. However, shareholders can be confident that profits from these businesses will make a meaningful contribution towards our growth in the current financial year. "

[wwick] 25/7/2017 08:48

"Operational synergies have continued to drive growth in operating margins and improved like-for-like performance across the Group." . . . . . "Organic growth is fundamentally driven by the five pillars of the business model highlighted above. In addition, the Group continues to seek and deliver synergies and transfer best operating practice between acquired businesses, both in terms of commercial upside, and cost and efficiency benefits to drive like-for-like margin improvement."

[shanklin] 25/7/2017 08:36

larva

Good point. I decided not to consider re-buying into VCP when I could not find an organic growth number. Is it something VCP normally provide?

[larva] 25/7/2017 08:14

Doesnt disclose ORGANIC growth rate
Big omission

[wingspan] 24/7/2017 23:56

I hope you don't mind me pointing out some wrong assumptions in what you write:

That I don't care about job losses

That there is definitely something going on because a company gets annoyed because information gets "leaked" rather than a company gets annoyed precisely because information has been leaked.

That you conclude that I think you are actually "interested" in undermining uk jobs

That because some machinery is being sold to a different company means there is "definitely" some sort of acquisition going on

Let's wait and see on GTuft but I am fairly sure that is a non starter.

I do agree with you that I would prefer for VCP to not be purchased by a foreign company who then erode the manufacturing fabric of this nation for extra profit...we don't know if that would happen but it is certainly an unpleasant prospect. one of the reasons I own shares in Victoria is that it does manufacture things in the UK and the management is trying to proactively build a great business.

I agree with you that it is very sad that jobs get lost anywhere.

[alemein] 24/7/2017 21:09

wingspan

Not personally embittered, just extremely disappointed that like yourself, nobody really cares about the 60 to 70 job losses and the implications for those workers.
As for me being interested in undermining uk jobs with my posts - that is a quite ridiculous comment to make.
G Tuft - there is definitely something happening there because some of Victoria Carpets machinery is going there. I say underhanded because when the information was leaked, the management got quite upset (rules of redundancy consultation compromised)
Your comments on Mowawk are interesting, we all know it is probably GW's end game, but I would be quite worried to be a UK worker in the group if that happens.
Brintons Carpets were bought out by an American company, now they hardly manufacture anything in the UK - gone to China India etc.
Perhaps even Belgium ;-)

All in my own personal opinion of course

[wingspan] 22/7/2017 08:46

Your posts would indicate that you are personally embittered by the closure of a manufacturing site and the loss of 60-70 jobs...

Do bear in mind that circa 1800 people are employed by the company...majority of which are UK based. Are you interested in undermining all those uk jobs with your posts?

For example: Your comments about GTuft are incorrect and therefore your personal remark of underhanded is incorrect and inappropriate.

And, last time I looked, it's not a crime for a company to grow itself and it's exposure to opportunities elsewhere...in Belgium or anywhere else for that matter.

[alemein] 20/7/2017 07:16

Unbelievable , they stop manufacturing at headquarters (Victoria Carpets) Then buy some little Belgium company who mainly supply the UK.
Hamers is Belgian I believe.


ANNOUNCEMENT

As per July 1st, Millennium Weavers Europe has been taken over by the Victoria Group and will keep on trading as Millennium Weavers Europe with its own P&L.

For customers and suppliers, everything remains the same. The current management and employees will stay on board.

We are welcoming the team of Millennium Weavers as part of the Victoria Group and are looking forward to further develop the brand and product line.



Philippe Hamers

CEO Victoria Group

[bouleversee] 19/7/2017 11:08

P.S. Clearly nobody in pursuit at the moment.

[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?