Annual Report and Accounts
for the 52 weeks ended 1 April 2023
www.victoriaplc.com
stock code: VCP
WELCOME TO VICTORIA PLC
Victoria is a designer, manufacturer and distributor of innovative flooring products.
GROUP FINANCIAL AND OPERATIONAL HIGHLIGHTS
BY APPOINTMENT TO
HER MAJESTY THE QUEEN CARPET MANUFACTURERS VICTORIA CARPETS LTD KIDDERMINSTER
UNDERLYING REVENUE (£m) | UNDERLYING OPERATING PROFIT (£m)1 | |||||||||||||
23 | 23 | |||||||||||||
1,461.4 | 118.8 | |||||||||||||
22 | 1,019.8 | 22 | 107.9 | |||||||||||
21 | 662.3 | 21 | 79.8 | |||||||||||
20 | 621.5 | 20 | 77.1 | |||||||||||
IFRS REPORTED OPERATING PROFIT / (LOSS) £m | ADJUSTED NET DEBT / EBITDA2 | |||||||||||||
23 | (24.1) | 23 | 3.4x | |||||||||||
22 | 53.6 | 22 | 2.7x | |||||||||||
21 | 45.9 | 21 | 3.1x | |||||||||||
20 | (8.5) | 20 | 3.0x | |||||||||||
- For the first time in the Company's history, the total volume of flooring sold in FY2023 exceed 200 million square metres (more than 29,500 football fields), generating record revenues of £1.46 billion.
- Solid like-for-like organic revenue growth of 2.8%, despite challenging macro-economic conditions and following very strong like-for-like organic growth of +19.2% in the previous 12 months.
- Underlying EBITDA grew by +20.4% over the prior year to £196.0 million.
- Year-endnet leverage was 3.44x, with the Group's senior debt consisting entirely of fixed rate, covenant-lite bonds falling due in August 2026 and March 2028.
- A resilient balance sheet, with cash and undrawn credit lines at the year-end in excess of £250 million.
- FY2023's focus on the successful integration of acquisitions has resulted in the projects' completion this month. The outcome is anticipated to conservatively deliver a £20+ million per annum increase in EBITDA.
- The Group's integration expenditure (exceptional expenses and capex) of the last three years is coming to an end. Consequently, the Board anticipates free cash flow to increase sharply. For the five-year period FY2015-2019, the Group averaged cash conversion of EBITDA to Net Free Cash Flow of 55%3, which the Board believes is a sustainable, long-term ratio and one management is focused on returning to in the near-term.
- Whilst the Group's FY2024 financial outlook is largely based on steady-state demand and underpinned by the various integration projects, each future 5% increase in overall revenue, which is Victoria's long-run organic growth rate, would be expected to deliver earnings and cash flow growth of more than £25 million per annum.
- The "signs of life" in some geographies noted in earlier market announcements, has continued to be seen - most noticeably in the UK, where we believe the Group is benefitting from the service it offers customers and its mid-high end product positioning and underlying earnings year-to-date are ahead of both budget and the same period last year.
- underlying and before exceptional and non-underlying items
- applying our lending banks' measure of financial leverage
- cash generated after replacement capex, interest, and tax as a percentage of EBITDA
Read the Victoria snapshot on pages 02 and 03
Victoria PLC Annual Report and Accounts 2023 | Stock Code: VCP |
OUR MISSION STATEMENT
TO CREATE WEALTH FOR OUR SHAREHOLDERS
Read the Financial review on pages 18 to 30
Visit our corporate website www.victoriaplc.com
Business and Performance
CONTENTS
Business and Performance
Group financial and operational | IFC |
highlights | |
A snapshot of Victoria PLC | 02 |
Chairman and CEO review | 04 |
Strategic report | 13 |
Financial review | 18 |
Environmental, Social and Governance | 31 |
Report |
Our Governance
Board of Directors | 43 |
Directors' report | 44 |
Statement of Directors' responsibilities | 48 |
Our Financials
Independent auditor's report | 49 |
Consolidated income statement | 64 |
Consolidated statement | 65 |
of comprehensive income | |
Consolidated and Company | 66 |
balance sheets | |
Consolidated and Company | 67 |
statements of changes in equity | |
Consolidated and Company | 68 |
statements of cash flows | |
Significant accounting policies | 69 |
Notes to the accounts | 79 |
Other Information
Shareholder information | 143 |
Registered offices of subsidiaries | 144 |
Glossary | 146 |
Appendix | 147 |
www.victoriaplc.com | 01 |
A Snapshot of Victoria PLC
OVERVIEW
The Group designs, manufactures and distributes a wide range of carpets, ceramic tiles, underlay, LVT (luxury vinyl tile), artificial grass and flooring accessories.
UNDERLYING REVENUE | OPERATING PROFIT | EMPLOYEES | |||
UK & Europe Soft Flooring | 48.9% | UK & Europe Soft Flooring | 21.3% | UK & Europe Soft Flooring | 53.3% |
UK & Europe Ceramic Tiles | 31.6% | UK & Europe Ceramic Tiles | 65.2% | UK & Europe Ceramic Tiles | 37.2% |
Australia | 8.2% | Australia | 8.4% | Australia | 5.1% |
North America | 11.3% | North America | 5.1% | North America | 4.4% |
UK & EUROPE SOFT FLOORING
Underlying Revenue
£718.8m
Employees
3,884
m2 flooring sold
115.8m
m2 underlay sold
51.3m
UK & EUROPE CERAMIC TILES
Underlying Revenue
£453.3m
Employees
2,714
m2 flooring sold
53.9m
AUSTRALIA
Underlying Revenue
£120.9m
Employees
369
m2 flooring sold
8.4m
m2 underlay sold
14.7m
NORTH AMERICA
Underlying Revenue
£168.4m
Employees
321
m2 flooring sold
6.1m
02 | Victoria PLC Annual Report and Accounts 2023 | Stock Code: VCP |
Business and Performance
LOCATION OF OPERATIONS
The Group has operations in the UK, Europe, Turkey, the USA and Australia, employing approximately 7,300 people at more than 30 sites.
UNITED KINGDOM
Dumfries, | Hartlepool, | |||||||||||
Dumfries & Galloway | County Durham | |||||||||||
Accessories production | Sales & marketing | |||||||||||
Distribution | Distribution | |||||||||||
Keighley, | ||||||||||||
Dewsbury, | West Yorkshire | |||||||||||
West Yorkshire | Underlay production | |||||||||||
Carpet production | Sales & marketing | |||||||||||
Sales & marketing | Distribution | |||||||||||
Distribution | Worcester, | |||||||||||
Worcestershire | ||||||||||||
Head Office | ||||||||||||
Rossendale, | Distribution | |||||||||||
Lancashire |
Underlay production
Sales & marketing
Distribution
Newport,
South Wales
Carpet production | ||||||
Hemel Hempstead, | ||||||
Sales & marketing | ||||||
Hertfordshire | ||||||
Distribution | Kidderminster, | |||||
Distribution | ||||||
West Midlands | ||||||
Sales & marketing |
EUROPE
OSS, | Genemuiden, Netherlands | ||||||||||||||||||||||||||||||
Netherlands | |||||||||||||||||||||||||||||||
Artificial grass | |||||||||||||||||||||||||||||||
Sales & marketing | |||||||||||||||||||||||||||||||
Manufacturing | |||||||||||||||||||||||||||||||
Distribution | Uden, Netherlands | ||||||||||||||||||||||||||||||
Waregem, | Sales & marketing | ||||||||||||||||||||||||||||||
Aalten, Netherlands | |||||||||||||||||||||||||||||||
Belgium | |||||||||||||||||||||||||||||||
Sales & marketing | |||||||||||||||||||||||||||||||
Carpet and Rugs | |||||||||||||||||||||||||||||||
Manufacturing | |||||||||||||||||||||||||||||||
Ronse, | Rahden, | ||||||||||||||||||||||||||||||
Germany | Izmir, Turkey | ||||||||||||||||||||||||||||||
Belgium | |||||||||||||||||||||||||||||||
Artificial grass | |||||||||||||||||||||||||||||||
Ceramics production | |||||||||||||||||||||||||||||||
Sales & marketing | |||||||||||||||||||||||||||||||
Manufacturing | |||||||||||||||||||||||||||||||
Usak, Turkey | |||||||||||||||||||||||||||||||
Rugs Manufacturing | |||||||||||||||||||||||||||||||
Castellon, Spain | Sassuolo, Italy | Alfonsine, Italy | ||
Ceramics production | Ceramics production | Ceramics production | ||
Sales & marketing | Sales & marketing | Sales & marketing | ||
Distribution | Distribution | Distribution |
AUSTRALIA
Sydney
Underlay production
Sales & marketing
Distribution
Melbourne
Carpet production
Sales & marketing
Distribution
NORTH AMERICA
Los Angeles, California | Atlanta, Georgia | |||||||||||||
Distribution | Rugs distribution | |||||||||||||
San Diego, California | Palm City, Florida | ||
LVT & Wood Flooring | Ceramic Tiles & LVT Flooring | ||
Sales & Marketing | Sales & Marketing | ||
Distribution | Distribution |
www.victoriaplc.com | 03 |
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Disclaimer
Victoria plc published this content on 22 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 September 2023 18:25:09 UTC.