Victoria Regulatory News (VCP)

Issued by Citigate Dewe Rogerson Ltd, Birmingham

Thursday, 10 February 2011

Interim Management Statement

"The statement reflects a strong performance in quarter"

Victoria PLC ('Group', 'Victoria' or 'Company') publishes its Interim Management Statement covering the period 3 October to 31 December 2010 and a trading update to the date of this announcement, as required by the UK Listing Authority Disclosure and Transparency Rules.

Total Group Revenue, aided by the strong Australian Dollar, was up by 10.8% in the period 3 October to 31 December 2010 and up by 3.1% on a constant currency basis on the same period last year.

In constant currency terms, Revenue in the United Kingdom was up strongly by 7.6%, despite the poor weather conditions that affected High Street sales in December. In Australia, Revenue was up by 2.4%; whilst in the Republic of Ireland, sales were down by 18.9%.

Sales in the UK benefited from the strong performance of new product introductions made earlier in the year and further growth in the insurance replacement channel to market. In Australia, sales to the residential sector were softer than normal in the run up to Christmas but this was off-set by better sales in the contract sector. Business conditions in Ireland continue to be worse than last year and remain extremely challenging.

Global supply and demand issues are having a strong inflationary effect on raw material prices throughout the Industry and, in particular, significant wool fibre increases will have to be passed onto consumers in what are still uncertain market conditions.

Trading in January in the UK was in-line with management expectations and ahead of the same period last year, although January 2010 was affected by very bad winter weather conditions. In Australia, the terrible floods in Queensland and parts of the State of Victoria have had some short-term impact on trading in January in those States but are not anticipated to affect the Group's Q4 results.

The Group remains focused on tight budgetary control and cash generation; however, higher commodity prices, further range introductions and new market initiatives are likely to marginally increase borrowings in the short-term.

Whilst uncertain economic times are still present, the Board continues to be confident that the Group will meet market forecasts for the full year and remains in very good shape to exploit market opportunities.