Victoria Regulatory News (VCP)

28 Jan 2010 13:57



Issued by Citigate Dewe Rogerson Ltd, Birmingham

Date: Thursday, 28 January 2010

IMMEDIATE RELEASE

Victoria PLC

Interim Management Statement & New Board Structure

"Statement reflects improved Autumn sales

and strengthened Balance Sheet position"

Interim Management Statement - Q3 2009

Victoria PLC ('Group', 'Victoria' or 'Company') publishes its Interim Management Statement covering the period October - December 2009 and a trading update to the date of this announcement, as required by the UK Listing Authority Disclosure and Transparency Rules.

Total Group revenue in the period October to December was up by 4.6% on a like for like basis, compared to the same period last year (2008).

In constant currency terms, segmental analysis saw revenue in the United Kingdom marginally ahead by 0.7% and in Australia increase by 2.5%. Revenue, however, in the Republic of Ireland was down 42.1% reflecting the on-going extremely challenging economic and market conditions in that region.

Sales in the UK, as anticipated, benefited from the new ranges introduced earlier in the year and from a slightly stronger seasonal market demand for the Group's residential products in the run up to Christmas. In Australia, the economy appears to have turned the corner and the company has started to see growth in sales and margin. 

The Group has continued to focus on cash generation; ensuring costs are under tight control and positioning the business to compete effectively. Additionally, tight management of working capital has enabled the Group to achieve a positive cash flow and to further reduce its borrowings in the period under review.

Outlook

With a strong balance sheet, the Board remains focused on optimising the full potential of each business and winning further market share whilst also identifying other opportunities to further strengthen the business, which in the future will enhance profitability and shareholder value.

The Board believe strongly that the business is in good shape and well positioned to move quickly to exploit and benefit fully from improved conditions both at home and overseas when the economic environment improves and sustained confidence returns to the consumer.

Whilst the outlook in Ireland continues to be somewhat uncertain, measures are being taken to mitigate the effects of the down-turn. A stabilisation in the UK market and a more positive outlook in Australia enable the Board to feel confident that the Group will meet market forecasts for the full year ending 3 April 2010.

New Board Structure

One of the Board's primary roles is to set the strategic direction for the Group and, as previously stated, Victoria is committed to maintaining an appropriate balance between executive and non-executive directors. As part of its strategic planning and taking into account 'Best Practice Corporate Governance,' the Board has been in the process of increasing the Board complement of independent non-executive directors.

Following a Board Meeting today, the Company announces the following changes to the PLC Board.

Alexander Anton is to step down as Non-executive Chairman with immediate effect, although he will remain on the Main Board as a Non-executive Director until the end of the current financial year on 3 April 2010 when he will retire from the business. He joined the Board of Victoria PLC in 1995, having previously been involved with the Group's principal trading subsidiary, Victoria Carpets since 1987. On behalf of all stakeholders, the Board thanks Alexander for his loyalty to the business and for the significant contribution he has made over many years. We wish him well in the future.

Alexander is succeeded by Nikki Beckett as Non-executive Chairman. As an existing member of the Board since 2007, Nikki's comprehensive all-round understanding of business, in particular from an outsourcing and customer service knowledge perspective, has added value to the Board's focus and strategic planning. The Directors, on behalf of staff and stakeholders, congratulate Nikki on her appointment to Non-executive Chairman and look forward to continuing working as a team in the development of the business.

Commenting on her appointment, Nikki Beckett said:

"I am delighted to have been appointed to the Chair, particularly at this stage of the Group's development. This business has made significant progress in enhancing its product ranges and further strengthening its position in the marketplace. I very much look forward to helping support the Group throughout its next phase of growth."

Alan Bullock, Group Managing Director added:

"Nikki is a recognised and well respected business leader who has added a wealth of experience to the Company since she joined us. We are delighted that a person with her calibre has accepted the role as we believe she will be a great asset to the business going forward."

Recruitment of additional NEDS

The Directors are well advanced in identifying suitable candidates who, in a non-executive capacity could add additional skills to complement the current mix. It is the intention of the Board to announce the appointment of two further non-executive directors as soon as discussions with the candidates have been completed. 

The Directors look forward to updating shareholders on the appointments as soon as practicable.

Note:

In regard to Ms Beckett's appointment as Non-executive Chairman, there are no changes or other matters which require to be disclosed pursuant to paragraph 9.6.13R of the Listing Rules since her appointment to the Board in 2007. 

Worcester Road, Kidderminster, Worcestershire DY10 1JR England

Telephone: +44 (0)1562 749300 Fax: +44 (0)1562 749649

Registered in England No. 282204