A few years ago Victoria was producing good results from UK carpet manufacturing and poor ones in Australia. Now the tables have turned as the commodity boom has boosted carpet demand in Western Australia and Queensland. New products such as a cut and loop pile to produce a 3D look , as well as increased market share, have also enhanced results. In the six months to end-September 2007, profits from Australia jumped from £792,000 to £1.28m on sales up from £11.1m to £13.7m, but everywhere else reported lower returns.
In the UK sales were up a touch at £12.43m but profits fell from £183,000 to £135,000. The first four months trading resulted in sales reasonably ahead of 2006 but there was a fall-off in August and September. There was also a drop in Irish profits from £185,000 to £100,000 as the construction sector slowed down.
Australia may also be called upon to save the day in the current six months although UK sales are traditionally stronger in the second half. Victoria has considerable property assets, and the company has now applied for planning permission on its six acre sports field in Kidderminster. Apart from a state-of-the-art sports centre, there should be room for a Travelodge and restaurant facilities.
For the full year, broker Arden Partners forecasts profits rising from £2.8m to £3.1m while the dividend increases 1p to13.5p.
VICTORIA (VCP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 268.5p | MARKET VALUE: | £ 18.6m | |
| TOUCH: | 262-275p | 12-MONTH HIGH: | 324p | LOW: 222p |
| DIVIDEND YIELD: | 4.3% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 430p | NET DEBT: | 33% | |
| Half-year to End Sept | Revenue (£m) | Pre-tax profit (£m) | Earnings per share (p) | Net div per share (p) |
|---|---|---|---|---|
| 2006 | 27.0 | 1.00 | 10.7 | nil |
| 2007 | 28.8 | 1.25 | 12.9 | nil |
| % change | +7 | +25 | +21 | – |
