Kidderminster, UK, July 25--Carpet maker Victoria has defied difficult market conditions and yesterday shareholders were told trading remained strong across the group, as reported by IC Birmingham.
Bob Gilbert, chairman, said at the annual meeting that the Australian arm had continued to perform well, with sales significantly ahead of the previous year and with profits benefiting from the acquisition of Pacific Textiles in October last year.
He said: “There are some indications the
market is becoming increasingly difficult, but so far the momentum of our business has meant that this has not impacted on the division’s performance and we believe we are continuing to gain market share at the expense of our competitors.”
Turnover for the year ended March was up 27 percent to £44.4 million and pre-tax profits increased 92 percent to £3.01 million. Sales are expected to rise to £48 million and pre-tax profits to £3.5 million.
During the year the company invested £2.2 million in a new carpet backing line at Kidderminster.
Two days ago Victoria announced it had bought Navan Carpets, an Irish competitor in County Meath, out of receivership for £1.6 million. The firm’s manufacturing plant will be moved to Victoria’s site in Worcester Road, Kidderminster.
Navan will operate as a division of Munster Carpets which Victoria acquired last October. A number of Navan’s former sales employees will be recruited by Victoria.
Gilbert told shareholders at the AGM held at the Kidderminster works that market conditions in the UK had also been challenging but sales from Victoria Carpets had continued to show strong year-on-year growth and this has also resulted in increased profitability.
The new carpet backing line, capable of producing carpet in widths up to five metres, had now been fully commissioned and was finishing an increasing proportion of tufted output.
“The reaction from the retail trade to carpet backed using this new process is very positive,” he said.
At Westwood Yarns, Vicoria’s yarn spinning division at Holmfirth, West Yorkshire, the capital expenditure programme of around £1 million was now substantially complete and the company expected the new spinning, winding, and heat-setting capacity and facilities to be fully on stream next month.
The Anton family own about 35 percent of Victoria and institutional shareholder Fortress Finance have six percent.
