Victoria profits up

From the Kidderminster Shuttle, first published Tuesday 26th Jun 2007.

PROFITS of a Kidderminster carpet making firm have risen by more than a third over the past year, according to preliminary results.

Victoria's pre-tax profits were up by 37 per cent, to £2.76 million, while group revenue increased by six per cent, to £55.43 million.

Among factors cited by company chiefs for the improvement were increased sales, despite a decline in the market generally.

Group managing director, Alan Bullock, said: "The past 12 months in the UK have been extremely challenging, with erratic market conditions prevailing.

"The market in the first half of the financial year was badly affected by the long, hot, dry spell of weather, which was hardly conducive to consumers buying carpeting.

"The autumn trading was then stronger, only to see the effects of higher energy costs and interest rate increases sapping consumer confidence after Christmas and through into the first quarter of 2007.

"Statistics have shown a five per cent decline during the year in the market and yet, despite this backdrop, I am pleased to report that Victoria has performed well and continued to take market share from its competitors."

Carpet sales went up by 7.3 per cent, from £25.46 million to £27.32 million, mainly due to launches of new ranges. Sales in the UK rose to £23.28 million, from £21.69 million, with particular growth - up by a fifth - to biggest customer, the John Lewis Partnership.

There was 7.9 per cent growth in the core independent retail sector, which remained key to Victoria's market strategy, representing 63 per cent of total UK sales.

Exports rose by 7.2 per cent, from £3.77 million to £4.04 million.

Mr Bullock added: "Victoria Carpets' spend on both new ranges and point-of-sale merchandising displays has, again, been kept at high levels throughout the year.

"Our investment in keeping product ranges fashionable and current is, we believe, keeping us ahead of our competitors and is, in no small measure, responsible for us growing our business within what is reported to be a delcining market."

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