Victoria PLC Manufacturing Reorg in Australia & Trading Update (1700R)
June 13 2018 - 1:00AM
UK Regulatory
TIDMVCP
RNS Number : 1700R
Victoria PLC
13 June 2018
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
13 June 2018
Victoria PLC
('Victoria,' the 'Company,' or the 'Group')
Manufacturing Reorganisation in Australia and Trading Update
Victoria PLC, (LSE: VCP) the international designers,
manufacturers and distributors of innovative flooring, today
announces the next phase of the Group's post-acquisition
operational integration.
On 26 June 2017, the Group announced plans to reorganise its UK
operations to improve efficiency and increase capacity. Significant
progress has been made, with the rationalisation of the UK
manufacturing footprint completed, and the strengthened UK
logistics network - including the Southern distribution centre - on
track to be fully operational later this year.
The Group continues to identify and realise synergy
opportunities arising from our acquisitions and is today announcing
a consolidation and investment in relation to its underlay business
in Australia.
Streamlining of Australia underlay manufacturing
The Group acquired its Australian underlay business as part of
the purchase of Dunlop Flooring in January 2017. There are
currently two manufacturing sites, in Sydney and Melbourne. The
Group has decided to focus all manufacturing on the existing site
in Sydney and to close the Melbourne operation when the current
lease expires in 2019. Together with an investment of approximately
A$2.1m (GBP1.2m) in new technology, this move is expected to
improve raw material processing, finishing and packaging at the
Sydney site. The combination of consolidation and investment will
increase flexibility and result in a more efficient and productive
operation. This project is expected to complete during the second
half of 2019.
Trading update
Preliminary audited results for the year-ended 31 March 2018
will be announced on 24 July 2018.
In the first two months of the new financial year trading has
been robust, with the Group's sales performance showing
like-for-like growth over the same period in the prior year of over
3%[1]. With this positive start to the year the Board looks to the
2019 financial year ahead with confidence.
Geoff Wilding, Executive Chairman, Victoria PLC commented:
"Victoria's Australian underlay business is already benefiting,
since acquisition last year, from being part of the wider Group,
which has brought cross-selling opportunities and sharing of best
practice. We have successfully reorganised our manufacturing
footprint within the UK, from which the benefits for shareholders
are evident, and are now undergoing a similar efficiency drive in
Australia.
The Group now has considerable experience in delivering
successful operational change, and we will continue to seek synergy
opportunities alongside our active acquisition programme".
For more information contact:
Victoria PLC +44 (0) 1562 749 300
Geoff Wilding, Executive Chairman
Philippe Hamers, Group Chief Executive
Michael Scott, Group Finance Director
Cantor Fitzgerald Europe +44 (0) 20 7894 7000
(Nominated Adviser & Broker)
Rick Thompson, Phil Davies, Will Goode (Corporate Finance)
Caspar Shand Kydd, Alex Pollen (Sales)
Berenberg +44 (0) 20 3753 3069
(Joint Broker)
Ben Wright, Mark Whitmore (Corporate Broking)
Buchanan +44 (0) 20 7466 5000
(Financial PR)
Charles Ryland, Madeline Seacombe
[1] Like-for-like growth on a constant currency basis, excluding
acquisitions for which there is no comparative figure in the Group
results.
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 or visit www.rns.com.
END
TSTUUOVRWAANAAR
(END) Dow Jones Newswires
June 13, 2018 02:00 ET (06:00 GMT)
Victoria (LSE:VCP)
Historical Stock Chart
From Apr 2024 to May 2024
Victoria (LSE:VCP)
Historical Stock Chart
From May 2023 to May 2024