Victoria nosedives as it moves into the red

Shares of floor coverings specialist Victoria tumbled after it swung into a half year loss as it battles against tough market conditions, high costs and intense competition in an oversupplied market.

Shares of floor coverings specialist Victoria tumbled after it swung into a half year loss as it battles against tough market conditions, high costs and intense competition in an oversupplied market.

The group, which issued a profit warning earlier this month, posted a pre-tax loss of £1.5m in the 26 weeks ended September 29th 2012 compared to a profit of £1.3m the year before. Group revenue fell 7.8% to £35.99m.

"Trading continues to be difficult in both the UK and Australia and confidence in the general economic and commercial environment remains fragile," Victoria said in a company statement.

"Although the remainder of the current financial year will be challenging, we believe we have adopted an appropriate strategy for Victoria and look forward to reporting improved results."

Victoria believes, at best, it will break even, before exceptional items, for the full year as it pushes through a strategy to reverse the group's fortunes.

Exceptional items and provisions, following restructuring, are expected to materially impact the group's present net asset value, it warned.

Victoria, which has proposed a move to AIM, said net debt increased in the half-year to £8.35m from the year-end figure of £7.75m.

Shares of the group tumbled 4.9% to 192.50p at 10:40am in London.

CJ

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
6 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Share tips of the week – 3 February 2023
Investments

Share tips of the week – 3 February 2023

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages
3 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
6 Feb 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
6 Feb 2023