Victoria : Annual Report and Accounts 2021

Annual Report and Accounts

for the 53 weeks ended 3 April 2021

www.victoriaplc.com

stock code: VCP

WELCOME TO VICTORIA PLC

Victoria is a designer, manufacturer and distributor of innovative flooring products.

BY APPOINTMENT TO

HER MAJESTY THE QUEEN CARPET MANUFACTURERS VICTORIA CARPETS LTD KIDDERMINSTER

GROUP FINANCIAL AND OPERATIONAL HIGHLIGHTS

REVENUE FROM CONTINUING OPERATIONS (£m)	OPERATING PROFIT* (£m)
21						21
662.3		79.8
20	621.5			20	77.1
19	566.8				19	70.5
18	417.5					18	48.8

PRE-TAX PROFIT* (£m)					ADJUSTED NET DEBT / EBITDA **
21		50.1		21	3.1x
20		48.0			20	3.0x
19		57.3	19		3.2x
18		40.8				18	2.7x
* Underlying and before exceptional items	** Applying our banks' adjusted measure of financial leverage

• 2021 was the eighth consecutive record year for Victoria - despite challenging operational conditions due to the pandemic.
• Record revenues of £662.3m were achieved, despite very material (as much as 80%) revenue declines in Q1 due to Covid-19 lockdowns.
• Record underlying EBITDA of £127.4m (FY20: £118.1m) and margin of 19.2% (FY20: 19.0%).
• Strong cash generation continues with £38.8m of underlying free cash flow, which equated to a 49% conversion from underlying operating profit.
• The Group successfully refinanced all of its outstanding debt plus raised additional capital for acquisitions, reducing the coupon by c.150bps and extending the duration so that the earliest of the Group's senior debt does not now fall due until August 2026, and approximately one-third of the total will not be due until March 2028.
• Five further earnings-enhancing acquisitions completed post year-end, during the first quarter of the new year.

Read the Victoria snapshot on pages 02 and 03

Victoria PLC Annual Report and Accounts 2021

Stock Code: VCP

OUR MISSION STATEMENT

TO CREATE WEALTH FOR OUR SHAREHOLDERS

Read the Financial review on pages 18 to 29

Visit our corporate website www.victoriaplc.com

Business and Performance

CONTENTS

Business and Performance

Group financial and operational	IFC
highlights
A snapshot of Victoria PLC	02
Chairman and CEO review	04
Strategic report	13
Financial review	18
Environmental, Social and Governance	30
Report

Our Governance

Board of Directors	32
Directors' report	33
Statement of Directors' responsibilities	37

Our Financials

Independent auditor's report	38
Consolidated income statement	53
Consolidated statement	54
of comprehensive income
Consolidated and Company	55
balance sheets
Consolidated and Company	56
statements of changes in equity
Consolidated and Company	57
statements of cash flows
Significant accounting policies	58
Notes to the accounts	67

Other Information

Shareholder information	118
Registered offices of subsidiaries	119
Glossary	120
Appendix	121

www.victoriaplc.com

01

A snapshot of Victoria PLC

OVERVIEW

The Group designs, manufactures and distributes a wide range of carpets, ceramic tiles, underlay, LVT (luxury vinyl tile), artificial grass and flooring accessories.

REVENUE		OPERATING PROFIT*		EMPLOYEES
UK & Europe Soft Flooring	42%	UK & Europe Soft Flooring	35%	UK & Europe Soft Flooring	39%
UK & Europe Ceramic Tiles	43%	UK & Europe Ceramic Tiles	50%	UK & Europe Ceramic Tiles	51%
Australia	15%	Australia	15%	Australia	10%

£662.3m

£79.8m

3,475

UNITED KINGDOM & EUROPE SOFT FLOORING

REVENUE	OPERATING PROFIT*	Employees	m2 flooring sold	m2 underlay sold
£280.4m	£28.7m	1,360	26.6m	47.1m

UNITED KINGDOM & EUROPE CERAMIC TILES

REVENUE	OPERATING PROFIT*	Employees	m2 flooring sold
£282.4m	£40.4m	1,755	40.6m

AUSTRALIA

REVENUE	OPERATING PROFIT*	Employees	m2 flooring sold	m2 underlay sold
£99.6m	£11.9m	360	8.4m	14.5m

* Segmental operating profit on an underlying basis before exceptional items, and before unallocated central expenses

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Victoria PLC Annual Report and Accounts 2021

Stock Code: VCP

Business and Performance

LOCATION OF OPERATIONS

The Group has operations in the UK, Europe and Australia, employing approximately 3,500 people at more than 20 sites.

UNITED KINGDOM AND EUROPE

Dumfries,

Dumfries & Galloway

Accessories production

Distribution

Oss, Netherlands

Aalten, Netherlands

Sales & marketing

Sales & marketing

Dewsbury,

Distribution

Hartlepool,

West Yorkshire

County Durham

Carpet production

Sales & marketing

Sales & marketing

Distribution

Distribution

Ronse, Belgium

Keighly,

Sales & marketing

West Yorkshire

Underlay production

Sales & marketing

Rossendale,

Distribution

Lancashire

Hemel Hempstead,

Underlay production

Hertfordshire

Sales & marketing

Distribution

Distribution

Castellon, Spain

Sassuolo, Italy

Newport,

Kidderminster,

Ceramics production

Ceramics production

South Wales

West Midlands

Sales & marketing

Sales & marketing

Head Office

Distribution

Carpet production

Distribution

Sales & marketing

Sales & marketing

Distribution

Distribution

AUSTRALIA

EBITDA BY GEOGRAPHY

	Europe	41%
	UK	32%
	Australia	12%
	Rest of World	15%
	£127.4m
Melbourne	Sydney
Underlay production
Carpet production
Sales & marketing
Sales & marketing
Distribution
Distribution

Based on underlying EBITDA split by selling destination

www.victoriaplc.com

03