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AIM-listed floor coverings specialist Victoria (LON:VCP) has said that it managed to grow sales over the six months ended 29th September, despite tough market conditions. The company’s strategy of aggressively targeting market share has grown revenues organically, but this has come at the cost of 1-1.5 gross margin percentage points relative to consensus market expectations.
The Australian arm of the business struggled with sales, which were down by 4% relative to a tough comparative. The firm also announced plans to issue €450 million in new debt notes to pay off existing debt facilities. Heading into the peak trading season, management were confident that Victoria would deliver strong full-year results, but investors had their doubts and the shares plunged 23.43% to 462.50p.