REG - Victoria PLC - Half-year Report
26/11/2024 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241126:nRSZ5926Na&default-theme=true
RNS Number : 5926N Victoria PLC 26 November 2024
Victoria PLC
('Victoria' or the 'Company', or the 'Group')
Half-year Report
for the six months ended 28 September 2024
Continuing to position the business for recovery
with lower fixed costs, higher operational gearing, and increased market share
Victoria PLC (LSE: VCP), the international designers, manufacturers and
distributors of innovative flooring, announces its half-year report for the
six months ended 28 September 2024, in line with the numbers announced in the
trading update of 15 October.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
Continuing operations(1) 26 weeks ended 26 weeks ended
28 September 2024 30 September 2023
Underlying revenue £568.8m £624.6m
Underlying EBITDA(2) £50.2m £92.7m
Underlying EBITDA (Pre IFRS-16) £34.6m £77.8m
Underlying operating profit(2) £7.7m £51.8m
Statutory operating (loss) / profit (£140.8m) £18.8m
Underlying (loss) / profit before tax(2) (£13.6m) £31.5m
Statutory net loss after tax (£141.7m) (£18.9m)
Underlying free cash flow(3) (£12.7m) £29.1m
Net debt(4) £658.2m £695.6m
Net debt / EBITDA(5) 6.2x 3.9x
Earnings / (loss) per share
- Basic (124.58p) (16.43p)
- Diluted adjusted(2) (5.01p) 13.77p
(1) The Group sold its B3 Ceramics Danismanlik ("Graniser") business on 18
November 2024 and this has been classified as a discontinued operation. The
financial highlights above exclude the contribution of Graniser in both the
current and prior year period.
(2) Underlying performance is stated before exceptional and non-underlying
items. In addition, underlying profit before tax and adjusted EPS are stated
before non-underlying items within finance costs.
(3) Underlying free cash flow represents cash flow after interest, tax and
replacement capital expenditure, but before investment in growth, financing
activities and exceptional items.
(4) Net debt shown before IFRS16 right-of-use lease liabilities, preferred
equity, bond issue premia and the deduction of prepaid finance costs.
(5) Leverage shown consistent with the measure used by our lending banks.
Outlook
• Flooring is a staple product required in every building which has a very long
growth trend and an assured replacement cycle and the Board believe demand
will rebound as markets experience a more favourable interest rate
environment.
• Despite market conditions Victoria has improved its competitive
differentiation and gained market share in key markets.
• £12 million has been permanently removed from our fixed cost base during the
period and a further £20 million per annum of savings is being executed, such
that the impact on FY2026 earnings will be circa £32 million in total. The
challenging trading environment has masked the financial impacts of these
changes, but they have minimised Victoria's fixed costs whilst materially
improved our operational leverage.
• Careful management of integration projects and cost savings to maintain
unchanged access to production capacity, allowing Victoria to rapidly increase
output to meet future demand more efficiently.
• The Board believe that demand normalisation should deliver a volume uplift
from current levels of more than 20%, with each 5% increase expected to drive
a greater than £25 million increase in Victoria's earnings.
Geoff Wilding, Executive Chairman of Victoria PLC commented: "The long-term
prospects for Victoria, continue to be exciting and we believe we have a clear
path to return to mid-high teen EBITDA margins.
In the short term, even with subdued demand profits should begin to recover
with the effects of the 'self-help' work undertaken to improve efficiency and
take market share.
In the medium term, as demand normalises, we are confident Victoria's revenue
will recover and with the higher operational leverage now inherent in the
business due to the integration projects and cost initiatives management have
executed this year (and which are ongoing), we anticipate earnings increasing
sharply with mid-high teen margins achievable."
Investor presentation
Geoff Wilding, Executive Chairman, Philippe Hamers, Group Chief Executive and
Brian Morgan, Group Chief Financial Officer will provide a live presentation
relating to the half-year report via the Investor Meet Company platform today
(Tuesday 26 November 2024) at 13:30 GMT.
The presentation is open to all existing and potential shareholders. Investors
can sign up to Investor Meet Company for free to attend the presentation here
(https://www.investormeetcompany.com/victoria-plc/register-investor) .
Investors who already follow Victoria PLC on the Investor Meet Company
platform will automatically be invited.
The results presentation will be made available on the Company's website on
the day of results here (https://www.victoriaplc.com/investors-welcome/) .
For more information contact:
Victoria PLC www.victoriaplc.com/investors-welcome
(http://www.victoriaplc.com/investors-welcome)
Geoff Wilding, Executive Chairman
Via Walbrook PR
Philippe Hamers, Group Chief Executive
Brian Morgan, Chief Financial Officer
Singer Capital Markets (Nominated Adviser and Joint Broker) +44 (0)20 7496 3095
Rick Thompson, Phil Davies, James Fischer
Berenberg (Joint Broker) +44 (0)20 3207 7800
Ben Wright, Richard Bootle
Walbrook PR (Media & Investor Relations) +44 (0)20 7933 8780 or victoria@walbrookpr.com
Paul McManus, Louis Ashe-Jepson, +44 (0)7980 541 893 / +44 (0)7747 515 393 /
Alice Woodings +44 (0)7407 804 654
About Victoria PLC (www.victoriaplc.com (http://www.victoriaplc.com) )
Established in 1895 and listed since 1963 and on AIM since 2013 (VCP.L),
Victoria PLC, is an international manufacturer and distributor of innovative
flooring products. The Company, which is headquartered in Worcester, UK,
designs, manufactures and distributes a range of carpet, flooring underlay,
ceramic tiles, LVT (luxury vinyl tile), artificial grass and flooring
accessories.
Victoria has operations in the UK, Spain, Italy, Belgium, the
Netherlands, Germany, Turkey, the USA, and Australia and employs
approximately 5,600 people across more than 30 sites. Victoria is Europe's
largest carpet manufacturer and the second largest in Australia, as well as
the largest manufacturer of underlay in both regions.
The Company's strategy is designed to create value for its shareholders and is
focused on consistently increasing earnings and cash flow per share via
acquisitions and sustainable organic growth.
CHAIRMAN & CHIEF EXECUTIVE'S LETTER TO SHAREHOLDERS
H1, Financial Year(1) 2025 2024 2023 2022 2021 2020
Revenue £568.8 £624.6m £771.5m £489.0 m £305.5m £312.9m
EBITDA £50.2m £92.7m £100.1m £84.5m £52.4m £58.5m
Margin 8.8% 14.8% 13.0% 17.3% 17.2% 18.7%
The flooring industry continues to experience the longest period of subdued
(albeit now appearing to be stabilising) consumer demand in a generation as a
result of macroeconomic pressures. We are confident the factors that have been
impacting demand are transitory, and at some point, the headwinds the industry
has experienced for the last two years will turn into tailwinds and the Board
is encouraged by recent positive data in Victoria's end markets. For example,
a key driver of demand is housing transactions and in the last quarter
increased mortgage approvals, rising house prices, and lower interest rates
have been reported in our key markets and these are all precursors to
increased transactions and consequently flooring demand as consumers refresh
their property before placing it on the market or refurbish their new home.
Similarly, as incomes have caught up with inflation alongside lower mortgage
expenses, consumer discretionary spending is also likely to increase, which
also drives flooring sales. Weak consumer demand for flooring has
historically always resulted in revenue deferred, not revenue forgone - the
threadbare rug or stained carpet reluctantly tolerated during economic hard
times is immediately replaced when a recovery in discretionary spending power
allows.
Nevertheless, Victoria is seizing the opportunity that the current environment
provides to become more efficient and grow market share. Primarily the
improved efficiency will come from the integration of recent acquisitions, but
much opportunity also exists to reduce costs when every expense item is
forensically examined for savings. As a result, we will be well positioned for
the recovery when it arrives with lower fixed costs, higher operational
gearing, and increased market share.
OPERATIONAL REPORT BY DIVISION
UK & Europe Soft Flooring
H1 FY25(1) H1 FY24(1)
Volumes 60.3 million sqm 61.1 million sqm
Revenue £284.8 million £318.6 million
EBITDA £25.5 million £43.2 million
Margin 8.9% 13.6%
Soft demand across almost all its markets impacted revenue and margins in the
UK & Europe Soft Flooring division although we are confident we have been
successful at improving our market position in the UK. For example, the
predominant component of our UK business is the delivery of 'cut lengths'
(i.e. carpet cut to size for a specific consumer order), and in the last 90
days the rolling four-week average order intake is c.15% above the same period
last year in what we know remains a soft market.
Earnings in this division were particularly impacted by the performance of
Balta, the Group's Belgium-headquartered rug manufacturer and distributor.
Government mandated labour cost inflation combined with below forecast volume
and pressure on selling prices compressed margins during the period. However,
these factors are being mitigated through transference of capacity to the
Group's modern Turkish factory in Usak alongside very material reductions in
FTE. A reduction of more than 700 FTE in Belgium has been achieved to date
with further savings underway that are expected to lower costs by an
additional £10 million per annum (approximately half these annual savings
will be seen in H2 FY2025, with the balance delivered to impact FY2026)
without any loss of production capacity.
Other initiatives to reduce costs and/or grow market share executed during the
period included:
· Integration of our UK distribution businesses was completed in
September with immediate savings totalling circa £5 million per annum. This
will therefore benefit H2 FY2025, but the full year effect will be seen in
FY2026.
· Operational integration of our two underlay businesses, which
included the closure of one plant in Scotland and (post the H1 balance sheet
date) an upgrade of the Haslingden manufacturing plant is expected to provide
annual savings of more than £4 million - £1 million of which will benefit H2
FY2025, with the full impact in FY2026.
· During the period Victoria expanded its Alliance logistics platform
into Northern Ireland and the Republic of Ireland - allowing us to provide the
same level of service to retailers in these important markets as it does in
the UK. Alliance continues to be a key differentiator, separating Victoria
from the continental carpet suppliers by meaningfully enhancing our service
proposition. Retailers place great value on fast, on-time delivery as it
allows them to reduce their inventory levels and warehouse overheads.
UK & Europe Ceramic Tiles
H1 FY25(1) H1 FY24(1)
Volumes 17.4 million sqm 18.3 million sqm
Revenue £151.4 million £166.5 million
EBITDA £19.5 million £36.1 million
Margin 12.9% 21.7%
Continued soft demand alongside competition from cheaper imported product has
maintained pressure on volumes and selling prices and this is reflected in
earnings for the period.
Aggressive action is being taken to mitigate the effects of low demand and
increased competition, whilst ensuring the business preserves its production
capacity:
· Installation of a new, ultra-efficient production line in Spain. This
will take about 12 months to complete but work is underway and the first stage
will be delivered in mid-FY2026, which will positively impact earnings and
cash flow that year. However, the full benefit will be seen in the following
year and is expected to improve earnings by £16-19 million, based on current
market conditions.
· Full integration of the ceramics production facilities to enhance
efficiency by allocating specific tile formats to the optimal plant,
irrespective of geographic location, as noted in the Group's 2024 full year
results.
· Post the H1 balance sheet date Victoria sold the Turkish ceramic tile
manufacturer, Graniser, in a €36.8 million transaction that will provide
Victoria's ceramic tiles business continued access to cost-effective tiles
whilst contributing towards the deleveraging of the Group's balance sheet by
reducing leverage by approximately 0.5 times.
Australia
H1 FY25(1) H1 FY24(1)
Volumes 11.4 million sqm 11.3 million sqm
Revenue £54.7 million £54.0 million
EBITDA £7.2 million £6.9 million
Margin 13.2% 12.8%
The Australian management have been able to achieve a very solid result,
despite similar softness in demand that has been experienced in other markets.
It is worth reminding shareholders that, despite being 10,000 miles from the
majority of Victoria's businesses and enjoying few of the synergy benefits our
other operations do, the Australian division consistently generates between
35-40% return on capital employed.
North America
H1 FY25(1) H1 FY24(1)
Volumes 3.4 million sqm 3.5 million sqm
Revenue £77.9 million £85.5 million
EBITDA £2.4 million £9.6 million
Margin 3.1% 11.2%
Victoria's US strategy has been to acquire good brands and distribution (not
manufacturing) businesses, which sell the same categories of product as the
Group manufactures or sells in Europe. Management had expected demand to
recover during FY2025 and had positioned the business accordingly, but with US
mortgage rates remaining close to 7% and housing transactions sitting at
25-year lows (both key drivers of flooring sales), demand remained subdued.
Therefore, we are taking the necessary actions to restore profitability in
what remains a challenging market:
· Restructuring actions to reduce SG&A by approximately $7.5
million per annum, including a reduction in corporate and warehouse personnel,
as well as other controllable expenses.
· Commercial excellence initiatives to improve profitability including
minimum order quantity policies, improved inventory positioning, and pricing
enhancements to achieve improved gross margin performance and reduce
transportation spend.
· Cost cuts at our partner factories to improve landed product costs in
several key products.
· Across the board price increases to offset the increase in COGS due
to higher sea freight expenses.
The full impact of these actions is expected to impact earnings by February of
2025.
(1) FY25 and FY24 performance is stated on a continuing and underlying basis:
excluding discontinued operations; and before exceptional and non-underlying
items.
CASHFLOW & LIQUIDITY
Net operating cash flow before interest, tax and exceptional items was £31.7
million for the half year ended 28 September. Importantly, after three
consecutive years of cash being absorbed in working capital, there was a
decrease of £2.1 million in H1 FY2025. This must - and will - continue to
improve with specific plans being executed by all managers.
Victoria continued to maintain a strong liquidity position and the Group
finished the period with cash and undrawn credit lines in excess of £200
million.
During the year the Company has completed the sale of a property in Belgium
for €39.7 million and (post the H1 balance sheet date) realised €36.8
million from the sale of Graniser, which reduced leverage by 0.5 times.
OUTLOOK
It is easy, almost inevitable, during challenging periods for investors and
management to focus almost entirely on the short term, but I think it is
useful to maintain awareness of the long-term prospects for Victoria, which
continues to be exciting:
· Flooring is a staple product required in every building and has a
very long growth trend and an assured replacement cycle. Macro-economic
drivers will influence spending for periods, but underlying factors
(continually ageing housing stock with interiors requiring repair and
renovation, higher household formation, broad housing shortages, increasingly
style-conscious consumers, and new construction) inexorably increase demand
over time and, as has happened in previous cycles, we believe demand will
rebound as our markets experience a more favourable interest rate environment.
· It is important to remember that our competitors are experiencing the
same market conditions and, as we have executed on our integration projects,
we have been able to improve our competitive differentiation and gain market
share in key markets. This gain has been camouflaged by the temporary fall in
the size of the market and pricing pressures, but it is no less real for that.
· £12 million has been permanently removed from our fixed cost base
during the period and more than £35 million in the last 18 months. (A further
£20 million of annual savings are being executed). The challenging trading
environment has masked the financial impacts of these changes, but they have
minimised Victoria's fixed costs whilst materially improved our operational
leverage.
· We have been extremely careful with all the integration projects and
cost savings to maintain unchanged access to production capacity.
Consequently, Victoria will be able to rapidly increase output to meet the
anticipated future demand - and will meet it more efficiently than it ever has
done in the past.
· In calendar 2023, flooring volume across Victoria's key markets was
estimated to be some 20% below the levels of 2019 (which were broadly in line
with the 25-year average growth rate). Simple reversion to the mean therefore
suggests demand normalisation should deliver a volume uplift from current
levels of more than 20%. Whilst the Group's FY2025 financial outlook is
largely based on current demand, it is interesting to note the potential
impact normalising demand could have on the business as each 5% increase in
volume is expected to drive a greater than £25 million increase in Victoria's
earnings.
In the short term, even with subdued demand profits should begin to recover
with the effects of the 'self-help' work undertaken to improve efficiency and
take market share.
In the medium term, as demand normalises, we are confident Victoria's revenue
will recover and with the higher operational leverage now inherent in the
business due to the integration projects and cost initiatives management have
executed this year (and which are ongoing), we believe we have a clear path to
return to mid-high teen EBITDA margins.
Geoff Wilding
Executive Chairman
Philippe Hamers
Group Chief Executive
Condensed Consolidated Income Statement
For the 26 weeks ended 28 September 2024 (unaudited)
26 weeks ended 28 September 2024 26 weeks ended 30 September 2023 52 weeks ended 30 March 2024 (audited)
(Restated)* (Restated)*
Underlying Non- Reported Underlying Non- Reported Underlying Non- Reported
performance
underlying
numbers
performance
underlying
numbers
performance
underlying
numbers
items
items
items
Notes £m £m £m £m £m £m £m £m £m
Continuing operations
Revenue 3 568.8 0.7 569.5 624.6 1.6 626.2 1,226.4 7.7 1,234.1
Cost of sales (389.1) (10.9) (400.0) (401.7) (11.3) (413.0) (812.2) (26.1) (838.3)
Gross profit 179.7 (10.2) 169.5 222.9 (9.7) 213.2 414.2 (18.4) 395.8
Distribution and administrative expenses (175.3) (138.3) (313.6) (174.4) (23.3) (197.7) (345.9) (119.5) (465.4)
Other operating income 3.3 - 3.3 3.3 - 3.3 4.7 0.1 4.8
Operating profit / (loss) 3 7.7 (148.5) (140.8) 51.8 (33.0) 18.8 73.0 (137.8) (64.8)
Comprising:
Operating profit before non-underlying and exceptional items 7.7 - 7.7 51.8 - 51.8 73.0 - 73.0
Amortisation of acquired intangibles 4 - (18.4) (18.4) - (19.4) (19.4) - (38.6) (38.6)
Other non-underlying items 4 - (5.6) (5.6) - (5.7) (5.7) - (6.2) (6.2)
Exceptional impairment charge 4 - (120.0) (120.0) - - - - (72.6) (72.6)
Other exceptional items 4 - (4.5) (4.5) - (7.9) (7.9) - (20.4) (20.4)
Finance costs 4 (21.3) (5.7) (27.0) (20.3) (17.2) (37.5) (41.9) (10.2) (52.1)
Comprising:
Interest on loans and notes (16.2) - (16.2) (15.8) - (15.8) (32.3) - (32.3)
Amortisation of prepaid finance costs for loans and notes (1.3) - (1.3) (1.3) - (1.3) (2.7) - (2.7)
Unwinding of discount on right-of-use lease liabilities (3.7) - (3.7) (3.2) - (3.2) (6.8) - (6.8)
Preferred equity items 4 - (3.3) (3.3) - (14.0) (14.0) - (5.4) (5.4)
Other finance items 4 (0.1) (2.4) (2.5) - (3.2) (3.2) (0.1) (4.8) (4.9)
(Loss) / profit before tax (13.6) (154.2) (167.8) 31.5 (50.2) (18.7) 31.1 (148.0) (116.9)
Taxation credit / (charge) 5 1.9 24.2 26.1 (8.3) 8.1 (0.2) 1.1 20.1 21.2
(Loss) / profit from continuing operations for the period (11.7) (130.0) (141.7) 23.2 (42.1) (18.9) 32.2 (127.9) (95.7)
Discontinued operations
Loss from discontinued operations for the period 8 (5.2) (25.7) (30.9) (0.5) (3.1) (3.6) (0.4) (11.9) (12.3)
Total (loss) / profit for the period (16.9) (155.7) (172.6) 22.7 (45.2) (22.5) 31.8 (139.8) (108.0)
Loss per share from continuing operations - pence basic 6 (124.58) (16.43) (83.15)
diluted 6 (124.58) (16.43) (83.15)
Loss per share from total operations - pence basic 6 (151.74) (19.61) (93.85)
diluted 6 (151.74) (19.61) (93.85)
*See note 8 for further details surrounding discontinued operations.
Condensed Consolidated Statement of Comprehensive Income
For the 26 weeks ended 28 September 2024 (unaudited)
26 weeks ended 26 weeks ended 52 weeks ended
28 September 2024 30 September 2023 30 March 2024
(audited)
£m £m £m
Loss for the period (172.6) (22.5) (108.0)
Other comprehensive (expense) / income
Items that will not be reclassified to profit or loss:
Actuarial loss on defined benefit pension scheme (0.1) (0.7) (1.9)
Items that will not be reclassified to profit or loss (0.1) (0.7) (1.9)
Items that may be reclassified subsequently to profit or loss:
Hyperinflation foreign exchange adjustments 9.9 (9.0)
18.1
Retranslation of overseas subsidiaries (4.1) (24.1) (21.8)
Items that may be reclassified subsequently to profit or loss 14.0 (14.2) (30.8)
Other comprehensive income / (loss) 13.9 (14.9) (32.7)
Total comprehensive expense for the period attributable to the owners of the (158.7) (37.4) (140.7)
parent
Condensed Consolidated Balance Sheet
As at 28 September 2024 (unaudited)
28 September 2024 30 September 2023 30 March 2024
(Restated) (audited)
£m £m £m
Non-current assets
Goodwill 101.1 172.5 102.6
Intangible assets other than goodwill 149.1 281.4 250.7
Property, plant and equipment 356.8 456.2 447.8
Right-of-use lease assets 168.9 152.8 157.2
Investment property 0.2 0.2 0.2
Investments 3.4 - -
Trade and other non-current receivables 0.9 - -
Deferred tax assets 10.1 2.0 7.9
Total non-current assets 790.5 1,065.1 966.4
Current assets
Inventories 317.0 372.8 326.1
Trade and other receivables 214.8 243.4 238.1
Current tax assets 3.8 10.6 4.1
Cash and cash equivalents 92.9 92.7 94.8
Assets classified as held for sale 43.5 25.8 -
Total current assets 672.0 745.3 663.1
Total assets 1,462.5 1,810.4 1,629.5
Current liabilities
Trade and other current payables (308.0) (346.3) (320.3)
Current tax liabilities (9.6) (11.2) (4.7)
Obligations under right-of-use leases - current (33.5) (27.2) (31.2)
Other financial liabilities (81.5) (62.4) (94.3)
Provisions (13.1) (12.3) (12.1)
Liabilities classified as held for sale (33.1) - -
Total current liabilities (478.8) (459.4) (462.6)
Non-current liabilities
Trade and other non-current payables (6.2) (7.4) (7.2)
Obligations under right-of-use leases - non-current (157.1) (136.5) (136.5)
Other non-current financial liabilities (659.6) (716.0) (672.7)
Preferred equity (284.6) (269.2) (274.2)
Preferred equity - contractually-linked warrants (5.3) (26.0) (12.4)
Deferred tax liabilities (26.2) (84.1) (56.7)
Retirement benefit obligations (5.2) (8.1) (8.4)
Provisions (19.7) (20.9) (21.0)
Total non-current liabilities (1,163.9) (1,268.2) (1,189.1)
Total liabilities (1,642.7) (1,727.6) (1,651.7)
Net (liabilities) /assets (180.2) 82.8 (22.2)
Equity
Share capital 6.3 6.3 6.3
Retained earnings (201.2) 62.5 (27.4)
Foreign exchange reserve (24.9) (23.1) (20.8)
Hyperinflation foreign exchange reserve 25.6 26.4 7.5
Other reserves 14.0 10.7 12.2
Total equity (180.2) 82.8 (22.2)
Condensed Consolidated Statement of Changes in Equity
For the 26 weeks ended 28 September 2024 (unaudited)
Share Retained Foreign exchange reserve Hyperinflation foreign exchange reserve Other Total
capital
earnings
reserves
equity
£m £m £m £m £m £m
At 1 Apr 2023 6.3 85.7 1.0 16.5 9.5 119.0
Loss for the period to 30 Mar 2024 - (108.0) - - - (108.0)
Other comprehensive income for the period - (1.9) - - - (1.9)
Retranslation of overseas subsidiaries - - (21.8) (9.0) - (30.8)
Total comprehensive loss - (109.9) (21.8) (9.0) - (140.7)
Buy back of ordinary shares - (3.2) - - - (3.2)
Share-based payment charge - - - - 2.7 2.7
Transactions with owners - (3.2) - - 2.7 (0.5)
At 30 Mar 2024 6.3 (27.4) (20.8) 7.5 12.2 (22.2)
Loss for the period to 28 Sep 2024 - (172.6) - - - (172.6)
Other comprehensive expense for the period - (0.1) - - - (0.1)
Retranslation of overseas subsidiaries - - (4.1) 18.1 - 14.0
Total comprehensive loss - (172.7) (4.1) 18.1 - (158.7)
Buy back of ordinary shares - (1.1) - - - (1.1)
Share-based payment charge - - - - 1.8 1.8
Transactions with owners - (1.1) - - 1.8 0.7
At 28 Sep 2024 6.3 (201.2) (24.9) 25.6 14.0 (180.2)
At 1 Apr 2023 6.3 85.7 1.0 16.5 9.5 119.0
Loss for the period to 30 Sep 2023 - (22.5) - - - (22.5)
Other comprehensive expense for the period - (0.7) - - - (0.7)
Retranslation of overseas subsidiaries - - (24.1) 9.9 - (14.2)
Total comprehensive loss - (23.2) (24.1) 9.9 - (37.4)
Share-based payment charge - - - - 1.2 1.2
Transactions with owners - - - - 1.2 1.2
At 30 Sep 2023 6.3 62.5 (23.1) 26.4 10.7 82.8
Condensed Consolidated Statements of Cash Flows
For the 26 weeks ended 28 September 2024 (unaudited)
26 weeks ended 26 weeks ended 52 weeks ended
28 September 2024 30 September 2023 30 March 2024
(audited)
(Restated) (Restated)
£m £m £m
Cashflow from operating activities
Operating (loss) / profit (140.8) 18.8 (64.8)
Adjustments for:
Depreciation and amortisation of IT software 48.4 44.7 94.0
Amortisation of acquired intangibles 18.1 19.9 40.0
Hyperinflation impact (1.8) (5.0) (13.2)
Acquisition-related performance plan (credit) / charge (0.1) 5.3 6.7
Acquisition-related performance plan (earn-out) payment (1.9) (9.5) (10.8)
Amortisation of government grants (1.2) (0.4) (0.9)
Profit / (loss) on disposal of investments and property, plant and equipment 3.3 (0.7) (2.1)
Working capital provision charge (0.4) (0.1) (0.5)
Impairment charge 120.0 - 72.5
Share incentive plan charge 1.8 1.2 2.7
Defined benefit pension - (0.4) 0.1
Net cash flow from operating activities before movements in working capital, 45.4 73.8 123.7
tax and interest payments
Change in inventories (18.7) (21.6) 14.1
Change in trade and other receivables 8.3 17.1 23.3
Change in trade and other payables 12.5 (16.2) (48.3)
Change in provisions (2.4) (12.0) (11.7)
Cash generated by continuing operations before tax and interest payments 45.1 41.1 101.1
Interest paid on loans and notes (17.1) (13.1) (29.7)
Interest relating to right-of-use lease assets (4.1) (3.3) (6.6)
Income taxes paid - 1.0 (2.3)
Net cash flow from discontinued operations (14.8) (3.6) (8.2)
Net cash inflow from operating activities 9.1 22.1 54.3
Investing activities
Purchases of property, plant and equipment (33.7) (27.2) (57.8)
Purchases of intangible assets (0.6) (1.2) (4.0)
Proceeds on disposal of property, plant and equipment 1.2 2.0 28.5
Deferred consideration and earn-out payments (1.0) (1.0) (4.1)
Proceeds on disposal of real estate via sale and leaseback 30.4 - -
Proceeds on disposal of business, net of cash 1.2 - -
Investing activities cashflow from discontinued operations (0.4) (0.4) (0.7)
Net cash used in investing activities (2.9) (27.8) (38.1)
Financing activities
Proceeds from debt 46.4 53.8 36.7
Repayment of debt (57.7) (24.6) (33.4)
Buy back of ordinary shares (1.1) - (3.2)
Payments under right-of-use lease obligations (14.8) (12.8) (28.2)
Cashflow from other financing activities - 0.2 0.9
Financing activities cashflow from discontinued operations 16.3 5.6 10.2
Net cash (used) / generated in financing activities (10.9) 22.2 (17.0)
Net decrease in cash and cash equivalents (4.7) 16.5 (0.8)
Cash and cash equivalents at beginning of period 87.2 90.4 90.4
Effect of foreign exchange rate changes (1.0) (1.3) (2.4)
Cash and cash equivalents at end of period 81.5 105.6 87.2
Comprising:
Cash and cash equivalents 95.0 105.8 94.8
Bank overdrafts (13.5) (0.2) (7.6)
81.5 105.6 87.2
Discontinued operations
Net cash (outflow) / inflow from operating activities (14.8) (3.6) (8.2)
Net cash used in investing activities (0.4) (0.4) (0.7)
Net cash generated in financing activities 16.3 5.6 10.2
Net decrease in cash and cash equivalents 1.1 1.6 1.3
Cash and cash equivalents at beginning of period 1.3 0.9 0.9
Effect of foreign exchange rate changes (0.3) (0.6) (0.9)
Cash and cash equivalents at end of period 2.1 1.9 1.3
Cash and cash equivalents presented above will differ to the balance sheet due
to the reclassification of assets held for sale in the current year and
specific bank overdrafts reclassified to financing activities within the
cashflow statement.
Notes
1. General information
These condensed consolidated financial statements for the 26 weeks ended 28
September 2024 have not been audited or reviewed by the Auditor. They were
approved by the Board of Directors on 25 November 2024.
The information for the 52 weeks ended 30 March 2024 does not constitute
statutory accounts as defined in Section 434 of the Companies Act 2006. A copy
of the statutory accounts for that year has been delivered to the Registrar of
Companies.
The Auditor's report on those accounts was unmodified and did not include a
reference to any matter to which the Auditor drew attention by way of emphasis
without qualifying the report and did not contain statements under Section
498(2) or 498(3) of the Companies Act 2006.
2. Basis of preparation and accounting policies
These condensed consolidated financial statements should be read in
conjunction with the Group's financial statements for the 52 weeks ended 30
March 2024, which were prepared in accordance with UK-adopted International
Financial Reporting Standards.
These interim financial statements have been prepared following AIM Rule 18
and on a consistent basis and in accordance with the accounting policies set
out in the Group's Annual Report and Financial Statements for the 52 weeks
ended 30 March 2024.
Having reviewed the Group's projections and taking account of reasonably
possible changes in trading performance, the Directors believe they have
reasonable grounds for stating that the Group has adequate resources to
continue in operational existence for the foreseeable future.
Accordingly, the Directors continue to adopt the going concern basis in
preparing the financial statements of the
Group.
Hyperinflation accounting
The inflation rate used by the Group is the official rate published by the
Turkish Statistical Institute, TurkStat. The movement in the publicly
available official price index for the 26 weeks ended 28 September 2024 was
18% (26 weeks ended 30 September 2023:
33%).
Non-underlying items
Non-underlying items are material non-trading income and costs and
non-underlying finance costs as defined by the Directors. In line with IAS 1
para 85, the non-underlying items are disclosed separately in the Consolidated
Income Statement given, in the opinion of the Directors, such presentation is
relevant to an understanding of the Group's financial performance.
Discontinued
operations
A discontinued operation is a component of the Group that either has been
disposed of or is classified as held for sale, and:
• represents a separate major line of business or geographical area of
operations;
• is part of a single co-ordinated plan to dispose of a separate major line
of business or geographical area of operations; or
• is a subsidiary acquired exclusively with a view to trade.
Profit or loss from discontinued operations, including prior year components,
are presented as a single movement in the statement of comprehensive income.
This amount is comprised of the post-tax profit or loss from discontinued
operations and the post-tax gain or loss resulting from the
disposal.
Balance sheet restatement at 30 September 2023
Consistent with the March FY24 year end, a prior period restatement has been
made to reclassify rebate accruals (£9.3m), previously included within
accruals, to be offset against trade receivables and similarly rebate accruals
that were previously netted off against trade receivables have been included
within accruals, in accordance with the Group accounting policy.
A prior period restatement has been made to reclassify provisions (£7.8m),
which were previously included within other liabilities, to the appropriate
provisions category.
In addition, consistent with March FY24 year end, a prior period restatement
has been made to recognise inventory in transit (£4.3m) not previously
recognised, impacting balance sheet only.
3. Segmental information
The Group is organised into four operating segments: soft flooring products in
UK & Europe; ceramic tiles in UK & Europe; flooring products in
Australia; and flooring products in North America. The Executive Board (which
is collectively the Chief Operating Decision Maker) regularly reviews
financial information for each of these operating segments in order to assess
their performance and make decisions around strategy and resource allocation
at this level.
The UK & Europe Soft Flooring segment comprises legal entities primarily
in the UK, Republic of Ireland, the Netherlands and Belgium (including
manufacturing entities in Turkey and a distribution entity in North America),
whose operations involve the manufacture and distribution of carpets, rugs,
flooring underlay, artificial grass, LVT, and associated accessories. The UK
& Europe Ceramic Tiles segment comprises legal entities primarily in
Spain, Turkey, Italy, UK and France, whose operations involve the manufacture
and distribution of wall and floor ceramic tiles. The Australia segment
comprises legal entities in Australia, whose operations involve the
manufacture and distribution of carpets, flooring underlay and LVT. The North
America segment comprises legal entities in the USA, whose operations involve
the distribution of hard flooring, LVT and ceramic tiles.
Whilst additional information has been provided in the operational review on
sub-segment activities, discrete financial information on these activities is
not regularly reported to the CODM for assessing performance or allocating
resources.
No operating segments have been aggregated into reportable segments.
Both underlying operating profit and reported operating profit are reported to
the Executive Board on a segmental basis.
Transactions between the reportable segments are made on an arm length's
basis. The reportable segments exclude the results of non-revenue generating
holding companies, including Victoria PLC. These entities' results have been
included as unallocated central expenses in the tables below.
Income statement
26 weeks ended 28 September 2024 26 weeks ended 30 September 2023
(Restated)
UK & UK & Australia North Unallocated Total UK & UK & Australia North Unallocated Total
Europe
Europe
America
central
Europe
Europe
America
central
Soft Flooring
Ceramic Tiles
expenses
Soft Flooring
Ceramic Tiles
expenses
£m £m £m £m £m £m £m £m £m £m £m £m
Income statement
Revenue 285.5 151.4 54.7 77.9 - 569.5 320.2 166.5 54.0 85.5 - 626.2
Underlying operating profit / (loss) 2.7 5.8 4.5 (0.5) (4.8) 7.7 20.7 22.8 4.4 7.2 (3.3) 51.8
Non-underlying operating items (4.9) (10.0) (0.8) (2.1) (6.2) (24.0) (7.1) (11.6) (0.8) (3.9) (1.7) (25.1)
Exceptional operating items (24.2) (78.8) - (0.4) (21.1) (124.5) (6.8) - - (0.3) (0.8) (7.9)
Operating (loss) /profit (26.4) (83.0) 3.7 (3.0) (32.1) (140.8) 6.8 11.2 3.6 3.0 (5.8) 18.8
Underlying net finance costs (21.3) (20.3)
Non-underlying net finance costs (5.7) (17.2)
Loss before tax (167.8) (18.7)
Tax credit / (charge) 26.1 (0.2)
Loss after tax from continuing operations (141.7) (18.9)
Loss from discontinued operations (30.9) (3.6)
Loss for the period (172.6) (22.5)
Other segmental information
26 weeks ended 28 September 2024 26 weeks ended 30 September 2023
UK & UK & Australia North Unallocated Total UK & UK & Australia North Unallocated Total
Europe
Europe
America
central
Europe
Europe
America
central
Soft Flooring
Ceramic Tiles
expenses
Soft Flooring
Ceramic Tiles
expenses
£m £m £m £m £m £m £m £m £m £m £m £m
Depreciation of tangible fixed assets and IT software amortisation (18.1) (10.7) (1.4) (1.8) (0.1) (32.1) (17.1) (11.2) (1.5) (1.2) - (31.0)
Depreciation of right-of-use lease assets (10.2) (3.2) (1.3) (1.1) (0.3) (16.1) (9.6) (2.4) (1.1) (1.1) (0.2) (14.4)
Amortisation of acquired intangibles (5.1) (9.9) (0.8) (2.2) (0.4) (18.4) (5.7) (10.3) (0.9) (2.4) - (19.3)
(33.4) (23.8) (3.5) (5.1) (0.8) (66.6) (32.4) (23.9) (3.5) (4.7) (0.2) (64.7)
26 weeks ended 28 September 2024 26 weeks ended 30 September 2023
UK & UK & Australia North Central Total UK & UK & Australia North Central Total
Europe
Europe
America
Europe
Europe
America
Soft Flooring
Ceramic Tiles
Soft Flooring
Ceramic Tiles
£m £m £m £m £m £m £m £m £m £m £m £m
Intangible additions 0.3 0.3 - - - 0.6 0.7 0.4 - - - 1.1
Property, plant and equipment additions 19.5 10.5 1.6 2.2 - 33.8 20.0 14.4 1.1 2.2 - 37.7
Right-of-use additions 20.0 6.6 0.2 - - 26.8 0.3 - - - - 0.3
Total capital additions 39.8 17.4 1.8 2.2 - 61.2 21.0 14.8 1.1 2.2 - 39.1
4. Exceptional and non-underlying items
26 weeks ended 28 September 2024 26 weeks ended 30 September 2023
(Restated)
£m £m
Exceptional items
(a) Acquisition and disposal related costs (0.3) (0.7)
(b) Reorganisation and other costs (0.3) (7.2)
(c) Gain on disposal of fixed assets and investments 2.9 -
(d) Loss on disposal of subsidiaries (6.8) -
(e) Asset impairment (120.0) -
(124.5) (7.9)
26 weeks ended 28 September 2024 26 weeks ended 30 September 2023
(Restated)
Non-underlying operating items £m £m
(f) Acquisition-related performance plans 0.1 (5.3)
(g) Non-cash share incentive plan charge (1.8) (1.2)
(h) Amortisation of acquired intangibles (excluding hyperinflation) (18.4) (19.4)
(i) Depreciation of fair value uplift to acquisition property, plant and machinery (3.3) (2.7)
(j) Hyperinflation depreciation adjustment (2.3) (1.6)
(k) Hyperinflation amortisation adjustment - -
(l) Hyperinflation monetary gain 6.4 10.7
(m) Other hyperinflation adjustments (excluding depreciation and monetary gain) (4.7) (5.6)
(24.0) (25.1)
Total (148.5) (33.0)
(a) One-off third-party professional fees in connection with prospecting and
completing specific acquisitions and disposals during the period.
(b) In the prior year, the Group made a significant investment decision in
restructuring the Rugs and UK broadloom businesses of Balta which represents
the majority of the £7.2 million, with small reorganisation and integration
projects around the Group contributing to the current year £0.3 million.
(c) Gain relating to the sale and leaseback of a property in Belgium, whereby
under IFRS 16, the majority of the gain on the disposal has been presented
within the carrying value of the right of use asset.
(d) Non-cash charge relating to the loss on disposal of Hanover Flooring
during the period.
(e) Exceptional impairment charge in the 'UK & Europe - Soft flooring
(Rugs)' CGU, where the estimated recoverable amount of the CGU was below the
carrying value of assets by £40 million due to the weak demand environment.
As no goodwill attaches to this CGU, the impairment charge was applied against
intangible fixed assets (£15.5m) and tangible fixed assets (£24.5m). Further
weaker demand in the European ceramics industry has resulted in an impairment
in the 'UK & Europe - Ceramic Tiles (Spain)' CGU where the carrying value
of assets exceeded the recoverable amount of the CGU by £80 million. As no
goodwill attaches to this CGU, the impairment charge was applied against
intangible fixed assets (£50.3m) and tangible fixed assets (£29.7m). While
no impairment charge was taken against other CGUs in the period, a reasonably
probable change to key assumptions within the recoverable value calculation,
forecast revenue growth and operating margins, could give rise to an
impairment being due on other CGUs.
(f) Credit / (charge) relating to the accrual of expected liability under
acquisition-related performance plans.
(g) Non-cash, IFRS2 share-based payment charge in relation to the long-term
management incentive plans.
(h) Amortisation of intangible assets, primarily brands and customer
relationships, recognised on consolidation as a result of business
combinations.
(i) Cost of sales depreciation charge reflecting the IFRS 3 fair value
adjustment on buildings and plant and machinery acquired on new business
acquisitions, given this is not representative of the underlying performance
of those businesses.
(j,k,l,m) Impact of hyperinflation indexation in the period, see accounting
policies. The hyperinflation impact in the period on revenue was £0.7m (2023:
£1.5m income), cost of sales was £7.5m charge (2023: £8.5m (charge)) and
admin expenses was £6.3m income (FY23: £10.4m income).
Finance costs
26 weeks ended 28 September 2024 26 weeks ended 30 September 2023
(Restated)
£m £m
Non-underlying finance items
(a) Finance items related to preferred equity (3.3) (14.0)
(b) Unwinding of present value of deferred and contingent earn-out liabilities (0.1) (0.3)
(c) Fair value adjustment to deferred consideration and contingent earnout 0.8 -
Acquisitions related 0.7 (0.3)
(d) Amortisation inception derivative 0.6 0.6
(e) Mark to market adjustments and gains on foreign exchange forward contracts (2.0) 1.4
(f) Translation difference on foreign currency loans and cash (1.5) (3.3)
(g) Hyperinflation - finance portion (0.2) (1.6)
Other non-underlying (3.1) (2.9)
-
(5.7) (17.2)
(a) The net impact of items relating to preferred equity issued to Koch Equity
Development during the current and prior periods.
(b) Current period non-cash costs relating to the unwind of present value
discounts applied to deferred consideration and contingent earn-outs on
historical business acquisitions. Deferred consideration is measured at
amortised cost, while contingent consideration is measured under IFRS 9 / 13
at fair value. Both are discounted for the time value of money.
(c) Fair value reduction to contingent liability resulting in a change to the
expected earnout due, resulting in a credit.
(d) Attached to the senior notes is an early repayment option which, on
inception, was recognised as an embedded derivative asset at a fair value of
£4.3m. The value of the senior debt liabilities recognised were increased by
a corresponding amount at initial recognition, which then reduces to par at
maturity using an effective interest rate method. A credit of £0.6m was
recognised in the period (2023: £0.6m).
(e) Non-cash fair value adjustments on foreign exchange forward contracts.
(f) Net impact of exchange rate movements on third party and intercompany
loans.
(g) Other finance cost/income impact of hyperinflation.
5. Taxation
The statutory tax credit on continuing operations of £26.1m (year ended 30
March 2024: tax credit of £21.2m, comparative six month period: tax charge of
£0.2m) which represents an overall effective corporation tax rate of 15.6%.
This compares to 18.1% for the year ended 30 March 2024 and a -1.1% rate for
the comparative six-month period in the prior year.
The statutory tax credit on continuing operations of £26.1m is comprised of:
a tax credit of £1.9m in respect of underlying activity and a tax credit of
£24.2m in respect of non-underlying activity. The tax credit in respect of
discontinued operations is £1.8m.
The tax credit in respect of underlying activity equates to an effective tax
rate of 14% compared to 26.3% for the comparative six month period in the
prior year and 3.53% for the year ended 30 March 2024. The rate of 14% has
been calculated using a combination of full year tax rate projections applied
to adjusted profit before tax for the period ended 30 September 2024 plus the
performance of specific tax calculations by territory where this is considered
by management to be more appropriate. This underlying tax rate also includes
the expected impact of the OECD Inclusive Framework agreement for a global
minimum corporate income tax rate of 15%, although the impact on Victoria's
results expects to be minimal.
The tax effect of non-underlying and discontinued items has been based on the
applicable rates of tax applying to these items arising in the period ended 28
September 2024.
6. Earnings per share
The calculation of the basic, adjusted and diluted earnings / loss per share
is based on the following data:
26 weeks ended 28 September 2024 26 weeks ended 30 September 2023
Basic Adjusted Basic Adjusted
(Restated) (Restated)
£m £m £m £m
Loss attributable to ordinary equity holders of the parent entity (141.7) (141.7) (18.9) (18.9)
Exceptional and non-underlying items:
Exceptional items - 124.5 - 7.9
Non-underlying items - 29.7 - 42.3
Tax effect on adjusted items where applicable - (24.2) - (8.1)
(Loss) / earnings for the purpose of basic and adjusted earnings per share (141.7) (11.7) (18.9) 23.2
from continuing operations
Loss attributable to ordinary equity holders of the parent entity from (30.9) (5.2) (3.6) (0.5)
discontinued operations
(Loss) / earnings for the purpose of basic and adjusted earnings per share (172.6) (16.9) (22.5) 22.7
Weighted average number of shares
26 weeks ended 28 September 2024 26 weeks ended 30 September 2023
Number Number
of shares
of shares
(000's) (000's)
Weighted average number of shares for the purpose of basic and adjusted 113,745 115,010
earnings per share
Effect of dilutive potential ordinary shares:
Share options and warrants 1,384 1,768
Weighted average number of ordinary shares for the purposes of diluted 115,129 116,778
earnings per share
Preferred equity and contractually-linked warrants 118,394 51,682
Weighted average number of ordinary shares for the purposes of diluted 233,523 168,460
adjusted earnings per share
The potential dilutive effect of the share options has been calculated in
accordance with IAS 33 using the average share price in the period.
The Group's earnings / loss per share are as follows:
26 weeks ended 28 September 2024 26 weeks ended 30 September 2023
Pence Pence
Earnings / loss per share from continuing operations
Basic loss per share (124.58) (16.43)
Diluted loss per share (124.58) (16.43)
Basic adjusted earnings / (loss) per share (10.29) 20.17
Diluted adjusted earnings / (loss) per share (5.01) 13.77
Loss per share from discontinued operations
Basic loss per share (27.17) (3.15)
Diluted loss per share (27.17) (3.15)
Earnings / loss per share
Basic loss per share (151.74) (19.61)
Diluted loss per share (151.74) (19.61)
Basic adjusted earnings / (loss) per share (14.86) 19.75
Diluted adjusted earnings / (loss) per share (7.24) 13.48
Diluted earnings per share for the period is not adjusted for the impact of
the potential future conversion of preferred equity due to this instrument
having an anti-dilutive effect, whereby the positive impact of adding back the
associated financial costs to earnings outweighs the dilutive impact of
conversion/exercise. Diluted adjusted earnings per share does take into
account the impact of this instrument as shown in the table above setting out
the weighted average number of shares. Due to the loss incurred in the year,
in calculating the diluted loss per share, the share options, warrants and
preferred equity are considered to be non-dilutive.
7. Rates of exchange
26 weeks ended 28 September 2024 26 weeks ended 30 September 2023 52 weeks ended 30 March 2024
Average Period end Average Period end Average Period end
Australia - AUD 1.9259 1.9347 1.9110 1.8975 1.9134 1.9369
Europe - EUR 1.1812 1.1969 1.1567 1.1528 1.1594 1.1690
United States - USD 1.2872 1.3371 1.2560 1.2197 1.2577 1.2626
Turkey - TRY 42.6819 45.6780 30.8810 33.4357 34.4101 40.8163
8. Discontinued operations and assets available for sale
Discontinued operations
By the 28 September 2024, the Group committed to a plan to dispose of B3
Ceramics Danismanlik ("Graniser") following the negative impact of recent
instability in several of its key markets. Graniser is a specific business
segment within the UK & Europe - Ceramic Tiles (Spain / Turkey CGU).
As a result, the operations of Graniser have been classified as discontinued
operations in accordance with IFRS 5. The results of the discontinued
operations for the period ended 28 September 2024 are summarised below:
26 weeks ended 26 weeks ended 52 weeks ended
28 September 2024 30 September 2023 30 March 2024 (audited)
Underlying Non- Reported Underlying Non- Reported Underlying Non- Reported
performance
underlying
numbers
performance
underlying
numbers
performance
underlying
numbers
items
items
items
Income statement - Graniser £m £m £m £m £m £m £m £m £m
Revenue 10.6 0.8 11.4 18.8 3.5 22.3 30.1 8.8 38.9
Cost of sales (10.9) (3.2) (14.1) (14.6) (5.5) (20.1) (26.9) (17.0) (43.9)
Gross profit (0.3) (2.4) (2.7) 4.2 (2.0) 2.2 3.2 (8.2) (5.0)
Distribution and administrative expenses (2.1) (21.1) (23.2) (1.7) 13.7 12.0 (2.7) 20.6 17.9
Other operating income - - - - - - 0.1 - 0.1
Operating profit / (loss) (2.4) (23.5) (25.9) 2.5 11.7 14.2 0.6 12.4 13.0
Finance costs (4.4) (2.4) (6.8) (2.3) (12.4) (14.7) (4.6) (22.4) (27.0)
Profit / (loss) before tax (6.8) (25.9) (32.7) 0.2 (0.7) (0.5) (4.0) (10.0) (14.0)
Taxation (charge) / credit 1.6 0.2 1.8 (0.7) (2.4) (3.1) 3.6 (1.9) 1.7
Loss from discontinued operations for the period (5.2) (25.7) (30.9) (0.5) (3.1) (3.6) (0.4) (11.9) (12.3)
Assets Held for Sale
As of 28 September 2024, the Group classified certain assets as held for sale,
as the criteria for classification under IFRS 5 had been met. These assets
relate to B3 Ceramics Danismanlik ("Graniser") which is a specific business
segment within the UK & Europe - Ceramic Tiles (Spain / Turkey CGU).
The carrying amount of the assets and liabilities held for sale are as
follows:
28 September 2024
£m
Property, plant and equipment 13.4
Right-of-use lease assets 2.5
Inventories 16.7
Trade and other receivables 8.8
Cash and cash equivalents 2.1
Assets classified as held for sale 43.5
Trade and other current payables (9.5)
Obligations under right-of-use leases - current (0.7)
Other financial liabilities (17.8)
Obligations under right-of-use leases - non-current (1.8)
Retirement benefit obligations (3.3)
Liabilities classified as held for sale (33.1)
The assets held for sale are measured at the lower of their carrying amount or
fair value less costs to sell. As of 28 September 2024, an impairment loss of
£26.6m has been recognised in exceptional non-underlying administrative
expenses to reflect the reduction in fair value.
Subsequent to the reporting period, on 18 November 2024, the Group completed
the sale of the Graniser discontinued operation to Mr Hasan Akgün. Total
consideration paid by Mr Hasan Akgün was €36.8 million (£30.9m(1)) paid as
€10.0 million (£8.4 m(1)) cash on completion, plus the assumption of
€26.8 million (c. £22.5m(1)) of net debt.
All obligations and liabilities associated with the discontinued operation
have been transferred to the buyer as part of the transaction.
There were no other post balance sheet events.
(1)Converted to GBP at a rate of 1.19 GBP/EUR.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR PPGMAGUPCPGARecent news on Victoria
See all newsREG - Victoria PLC - Board Appointment and Grant of Options
AnnouncementREG - Victoria PLC - Exercise of LTIP Share Options
AnnouncementREG - Victoria PLC - Victoria Announces CFO Transition
AnnouncementREG - Victoria PLC - Holding(s) in Company
AnnouncementREG - Victoria PLC - Holding(s) in Company
Announcement