News blog

Victoria

• BY: Andrew Hore |
• POSTED: 06/11/2013 |

Carpets and floorcoverings manufacturer Victoria reported a small decline in revenues but it returned to profit.

In the six months to September 2013, revenues fell from £36m to £34.5m, well a pre-exceptional loss of £65,000 was turned into a pre-exceptional profit of £614,000. This improvement is mainly down to a reduction in admin expenses. Exceptional charges of £528,000 relate to the restructuring of the Australian spinning mills due to declining demand for woollen yarns. Production at the smaller of the two spinning mills ended in June.

The decline in revenues came in Australia with a small increase for the UK. The UK made a small pre-exceptional profit while the contribution from Australia improved. Consumer demand for carpets remains weak but wool prices are increasing. There are more positive signs for commercial sales.

Net debt has been reduced by £4.54m to £2.97m at the end of September 2013. The company is no longer trying to sell its sports ground in Kidderminster to the council. An unchanged interim dividend of 2p a share was announced.

At 245p a share, Victoria is valued at £17.2m. The NAV is £34m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFOctober2013_49.pdf