Victoria rolls out higher profits but warns on costs

17th Nov 2014 13:38

Carpet and floor covering retailer Victoria rolled out record first-half profits, but warned of higher raw material costs and said its debt had risen.Victoria said pre-tax profits from continuing operations rose to £2.4m from £0.5m a year ago on a 17.3% rise in revenue to £40.5m.The group bought privately-owned carpet maker Abingdon Flooring just after the end of the first half, which it said would broaden its product range and enable significant savings. Abingdon's brands include Stainfree, Wilton Royal and Distinctive Flooring. But net debt increased by £18.72m from the end of the year to £20.2m following the special dividend payment of £20.7m in July.The group added that competition was still intense and raw material prices were increasing, both of which were keeping margins under pressure.Chairman Geoff Wilding said: "The board believes it has an appropriate strategy to further improve the group's performance."Shares fell 25p or 5.9% to 397.5p at 14:19 in London.