Victoria eyes further acquisitions as demand stays strong

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Victoria PLC (LON:VCP) said that trading continues to be very strong across all its markets with “double-digit percentage” increases over 2019.

The flooring group isn’t using last year’s numbers to compare because trading was severely hampered by lockdowns.

READ: Victoria blots ESG copybook with £43mln artificial grass acquisition

Housing transactions, savings rates, and consumer confidence suggest that the current high levels of consumer demand will be sustained for the foreseeable future, the company said.

It added that it has been able to mitigate the inflation recently seen globally in certain raw material prices through a combination of selling price increases and supplier negotiations.

Victoria said it is “very pleased” with the post-completion performance of the recently announced acquisitions, which are estimated to have a positive impact on earnings and free cash flow this financial year.

The board said it will report additional acquisition-led growth in the short-term.

Following the Koch Equity Development preferred equity investment in November and the subsequent bond issue in February and March of this year, the company has capital ready to deploy for further deals.

“We expect Victoria to continue to benefit from the buoyant housing market combined with the increased focus on home improvement,” analysts at house broker Peel Hunt said.

Shares rose 3% to 1,035p on Tuesday morning.

–Adds analyst comment, shares–

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