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Aussie booster for Victoria

TIP UPDATE: Victoria bucks UK gloom, thanks to buoyant demand down under

Having operations covering two hemispheres is good news for carpet maker Victoria because when one is down, the other can still perform strongly. A few years ago, UK carpet manufacturing was booming, but times were hard in Australia. Now the tables are turned, as Britain slips into possible recession, the Aussies have become big spenders on the back of the commodities boom.

IC TIP: Buy at 262.5p

In fact, Victoria still managed to do well last year despite a “very challenging” home market: UK sales rose 6 per cent to £25.5m, despite overall carpet demand falling by around 5 per cent; operating profits were 10 per cent higher at £1.34m.

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