Victoria Regulatory News (VCP)

24 Jul 2007 15:15

Victoria PLC24 July 2007 Issued on behalf of Victoria PLC by Citigate Dewe Rogerson, BirminghamDate: Tuesday 24 July 2007 Immediate Release Victoria PLC Interim Management Statement and Annual General Meeting At the Victoria PLC Annual General Meeting held today (24 July 2007), BobGilbert, Chairman gave the following Interim Management Statement toshareholders: "Our businesses have generally performed well in relatively flat marketplaces.Overall, first quarter revenue has increased a modest 1% on the comparativequarter last year. However, gross margins have improved across the Groupenabling the business to deliver solid growth in operating profit on a like-forlike-basis. "Looking across the territories in which we operate: United KingdomIn a first quarter which saw consumer sentiment continuing to be affected byrecent interest rate increases, and lower disposable income, sales were up by2.0% on the corresponding period last year. Margins were 2.1% ahead of last yearas cost continued to be tightly controlled. Whilst the market still shows no signs of recovery, we believe that the newproduct introductions being made will benefit us during the second half of theyear and beyond. IrelandAlthough again, we saw some margin improvement with the gross margin up by 1.1%,Q1 sales in this region have been disappointing being 20.6% down on thecorresponding quarter last year. Residential sales have been badly affected by the slow-down in the housingmarket caused by the uncertainty associated with stamp duty in the run-up to theGeneral Election here whilst, Contract sales were also significantly down in thequarter, despite the fact that we have a good forward specification order book. We anticipate residential sales improving now the stamp duty issue has beenresolved and when we come out of the generally slower summer trading period. Thestrong contract specification book should also see us making a good recovery inthe second half of the year. AustraliaOur Australian operation has had a very pleasing start to the new financialyear, making good progress on all fronts compared to last year with revenues up11.5% and margins up significantly by 4.2%. Sales were particularly strong to the Western Australian State which has anincreasingly burgeoning economy whilst the new Level Cut Loop products inSolution Dyed Nylon which I highlighted in the Annual Accounts are nowbenefiting both sales and margin. CanadaDespite the fact that sales in Canada are only marginally up in the firstquarter compared to last year, we have secured some significant contractresidential orders for supply later this year which gives us a solid platformfor growth. SummaryThe Group has achieved operating profit growth in the first quarter broadlyin-line with management expectations. Going forward, although it is difficult to predict the market environment,particularly in the UK and Ireland the Group will continue to concentrate onstrengthening its product offering to build sales whilst focusing on improvingmargins, controlling costs and generating cash. The Board remains confident that Victoria has the structure, products and peoplein place to continue to deliver an improved performance this financial year." All Resolutions were duly passed by the shareholders. Details of the proxy votes are provided on the Group's websitewww.victoria.plc.uk or by request from the Company Secretary. For further information, please contact:Alan Bullock, Group Managing DirectorIan Davies, Group Finance Director Fiona Tooley, DirectorVictoria PLC Citigate Dewe RogersonTelephone: +44 (0) 1562 749640 Telephone: +44 (0) 121 455 8370Mobile: +44 (0) 7785 325701 (AB) Mobile: +44 (0) 7785 703523www.victoria.plc.uk This information is provided by RNS The company news service from the London Stock Exchange