Good morning all,
The usual quiet Friday for RNS announcements but we do have finals from carpet manufacturer Victoria (LON:VCP):
http://www.investegate.co.uk/victoria-plc--vcp-/rns/final-results/201408290700152951Q/
Revenues broadly flat, with a big increase in profits and a huge reduction in debt.
Management speak:
2014 marked a significant improvement in Victoria's financial position. Much of the underlying improvement has come from our relentless day-to-day focus on costs, margins and sales growth.
We are encouraged by the outlook for our business, with the UK residential property market showing signs of increased consumer confidence. The Australian market is also showing signs of economic improvement, which will, in time, translate into consumer confidence and increased demand for carpet.
With the reshaping of the business that has already occurred, together with the improving market conditions and other opportunities that we see, I am optimistic about the Group's future.
Fortunately, there are some detailed notes on how they pulled off this turnaround:
We were very pleased to acquire Westex during 2014. Westex is arguably the UK's premium tufted carpet manufacturer, and is run by talented and committed individuals who, I am delighted to say, have committed to remain at the business for a minimum of five years. In 2014, Westex generated profits of £4.53m although the contribution to Victoria's profit before tax was £1.17m, reflecting the fact that we owned the business for just three months of the financial year.
...
we have sold our operational real estate in Australia and the Company's property at Kidderminster, by way of sale and lease back.
Basic, adjusted EPS was reported at 27.1p. That puts the shares on a P/E of around 7.5. There is no final dividend but management has promised to resume payme
nts next year.
Good day to all,
David O'Hara
Editor, AIM Prospector
PS AIM Prospector will be released to registered subscribers on Monday. To make sure you get your copy, register here: www.aimprospector.co.uk
