Victoria PLC – Preliminary Results

Victoria PLC – Preliminary Results

Victoria PLC (LSE: VCP) the international designers, manufacturers and distributors of innovative floorcoverings, is pleased to announce its preliminary results for the year ended 30 March 2019.

Financial and Operational highlights

Continuing operations

Year ended

30 March

2019

Year ended

31 March

 2018

Growth

Revenue

£574.4m

£424.8m

+35%

Underlying EBITDA1

£96.3m

£64.7m

+49%

Underlying operating profit1

£70.3m

£48.8m

+44%

Operating profit

£24.0m

£26.4m

– 9%

Underlying profit before tax1

£57.2m

£40.8m

+40%

Profit / (loss) before tax

£(3.7)m

£13.4m

Underlying free cash flow2

£50.4m

£35.0m

+44%

Net debt

£339.9m

£258.7m

+31%

Net debt / EBITDA3

3.2x

2.7x

Earnings per share4:

– Diluted adjusted1

35.25p

30.61p

+15%

– Diluted

(6.44)p

8.37p

·    2019 was the sixth consecutive record year for Victoria as the Group’s competitive strength continued to grow and strategic objectives were achieved.

·    Like-for-like revenue growth of 2.0% across the Group, despite challenging market conditions.

·    Achieved a record underlying EBITDA margin of 16.8%, c.160 basis point increase year-on-year.

·    Strong cash generation continues with £50.4 million of underlying free cash flow during 2019, a 44% increase over the previous year, which equates to a 72% conversion from underlying operating profit.

·    Significant reorganisation of UK and European manufacturing footprint and logistics structure completed on schedule and on budget (£12.7 million in exceptional reorganisation costs), with a materially positive impact on margin expected in FY2020.

·    £20.9 million investment in growth capex to deliver best in class facilities, enabling revenue and margin growth in future years.

·    Acquisition of Ceramica Saloni completed during the year, expanding the Group’s presence in the high-margin ceramic flooring sector in Europe and internationally. Now fully integrated with Keraben, Victoria’s enlarged ceramics division is performing strongly, in line with expectations.

·    Year-end leverage of 3.2x, consistent with the Group’s financial policy, with the increase in the year resulting from the acquisition of Saloni and investments in synergy projects.

·    Committed long-term debt financing arrangement in place, provided by Credit Suisse, NatWest, ING, HSBC, Bank of Ireland and BBVA, with flexibility to replace a proportion in the bond market.

 

1 Underlying performance is stated before the impact of exceptional and non-underlying items, including the amortisation of acquired intangibles within operating profit.  In addition, underlying profit before tax and adjusted EPS are also stated before non-underlying items within finance costs (comprising mark-to-market adjustments, BGF redemption premium charge, deferred consideration fair value adjustments, exchange rate differences on foreign currency loans, and the release of pre-paid costs on extinguished financing)

2 Underlying free cash flow represents cash flow after interest, tax and replacement capital expenditure, but before investment in growth, financing activities and exceptional items

3 As measured in line with our bank facility covenants

4 Earnings per share on a fully-diluted basis

 

 

Geoff Wilding, Executive Chairman of Victoria PLC commented:

“Victoria achieved another record year in 2019 making it the sixth consecutive year of growth in underlying earnings; and free cash flow per share, and operating margins, despite continuingly challenging market conditions.

There remains an enormous market opportunity for Victoria to expand both in the UK and internationally, by organically improving margins and earnings still further within our existing business, as well as by acquisition, where we believe opportunities we have identified will make a meaningful contribution to the Group. We remain focused on increasing both earnings and free cash flow per share.

2019 was a year when we invested £21 million in growth capex in addition to synergy projects across the Group to accelerate growth, increase margins and cash flow in the years ahead. At times, reorganising a factory while still focussed on achieving organic growth felt like conducting open heart surgery whilst the patient was running a marathon but we are very pleased with the end result. At the time of writing, we are just three months into our new financial year but the numbers being reported by the operating businesses to date, point to the expected positive outcomes being achieved and I look forward to updating shareholders in due course.”

No Comments

Post a Comment