REG - Victoria PLC - Purchase of Own Shares

VictoriaAnnouncement

05/08/2022 07:00

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RNS Number : 0154V  Victoria PLC  05 August 2022

For Immediate
Release
                    5 August 2022

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

Victoria PLC

('Victoria' or the 'Company' or 'Group')

Purchase of Own Shares

 

Victoria Plc. announces that yesterday it purchased 32,500 of its ordinary
shares of 5 pence each ("Ordinary Shares") at an average price of 365.5 pence
per share pursuant to the authorities obtained at the Company's last annual
general meeting to make market purchases up to a maximum aggregate of
11,685,190 Ordinary Shares.

 

The Board believes that the current share price is materially below the
intrinsic value of the business and indeed at the current levels few
alternatives exist for capital deployment that will provide equivalently high,
risk-weighted returns.

 

When making the decision to repurchase shares, the Board carefully considered
the Company's current financial strength and resources available, its trading
outlook, and global economic uncertainties. As confirmed in the recent FY2022
preliminary results announcement, Victoria has traded in line with
expectations for the current year and continues to generate significant
positive cash flow. Notwithstanding the consideration paid for the Balta
acquisition in April, the Group remains with more than £200 million of
liquidity (cash and undrawn credit lines) - an amount that is expected to
increase materially this year.

 

The Board emphasises that this is not the start of a longer-term programme to
return capital to shareholders. However, subject to maintaining strict price
discipline and operating within the regulatory limits, the Company may
continue to buy shares up to the maximum permitted under the current authority
provided by shareholders at the last AGM.

 

Aggregated information:

 Date of purchase                     4 August 2022
 Number of Ordinary Shares purchased  32,500
 Highest price paid per share         369.27p
 Lowest price paid per share          353.46p
 Volume weighted average price paid   365.49p

 

The repurchased shares will be held in Treasury, to be re-deployed when
appropriate in a manner that will continue to create wealth for shareholders.
Following the purchase of these shares, Victoria holds 8,770,685 of its
Ordinary Shares in treasury and has 116,693,982 Ordinary shares in issue
(excluding treasury shares). This figure may be used by shareholders as the
denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in, the
Company under the FCA's Disclosure Guidance and Transparency.

 

Executive Chairman, Geoff Wilding, commented,

"Share buybacks are not something to be undertaken lightly. However, there are
times when the fundamental economics of doing so are utterly compelling. This
is one of those times.

 

This buyback will result in a transfer of wealth from the selling shareholders
to those that continue to hold their shares. However, given Victoria recently
published its FY2022 results and provided guidance around expected FY2023
trading, we plan to continue to take advantage of the opportunity to buy back
shares at levels we believe are materially below the intrinsic value of the
Company."

 

 

Transaction details

In accordance with Article 5(1)(b) of Regulation (EU) No 596/2014 (the Market
Abuse Regulation) (which forms part of domestic UK law pursuant to the
European Union (Withdrawal) Act 2018), a detailed breakdown of individual
trades is available below:

 

 Number of Ordinary Shares purchased  Transaction price (GBp)  Time of transaction  Trading venue
 5,000                                353.46p                  08:55:55             AIMX
 12,500                               367.00p                  09:39:27             AIMX
 5,000                                366.19p                  10:07:47             AIMX
 10,000                               369.27p                  11:22:25             AIMX

 

 The person responsible for arranging the release of this announcement on
 behalf of the Company is Michael Scott, Group Finance Director.

 For more information contact:

Victoria PLC                                                   +44 (0) 1562 749 610

 Geoff Wilding, Executive Chairman

 Philippe Hamers, Group Chief Executive

 Michael Scott, Group Finance Director

 Singer Capital Markets (Nominated Adviser and Joint Broker)    +44 (0) 207 496 3095

 Rick Thompson, Phil Davies, Alex Bond

 Berenberg (Joint Broker)                                       +44 (0) 203 207 7800

 Ben Wright, Richard Bootle

                                                                +44 (0) 207 418 8900

 Peel Hunt (Joint Broker)

 Adrian Trimmings, Andrew Clark                                 +44 (0) 20 7466 5000

 Buchanan Communications (Financial PR)

 Charles Ryland, Chris Lane, Jack Devoy

 

About Victoria

 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 Group, which is headquartered in Kidderminster, 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,
 Turkey, the USA, and Australia and employs approximately 6,500 people across
 30 sites. Victoria is the UK's largest carpet manufacturer and the second
 largest in Australia, as well as the largest manufacturer of underlay in both
 regions.

 The Group'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. (Further information about
 Victoria can be found on its website, www.victoriaplc.com
 (http://www.victoriaplc.com) .)

 

 About Victoria

 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 Group, which is headquartered in Kidderminster, 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,
 Turkey, the USA, and Australia and employs approximately 6,500 people across
 30 sites. Victoria is the UK's largest carpet manufacturer and the second
 largest in Australia, as well as the largest manufacturer of underlay in both
 regions.

 The Group'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. (Further information about
 Victoria can be found on its website, www.victoriaplc.com
 (http://www.victoriaplc.com) .)

 

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