Victoria PLC: - The carpet maker with a strong price performance

8/19/2019 Victoria PLC: - The carpet maker with a strong price performance

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Victoria PLC: - The carpet maker with a strongprice performance

Date: 29/03/16

Share price: 1,403 Market cap (£m):

255.

P/E: 5 !e"e#$e%& 2016 (pr'ecte): 253

E*$it+ (£m): 53 et e-t (£m): 1

aret price: £10£15/&hare -etee# #' a# 30th $+

a# a &hare price ' £6.50/&hare -+ +eare#.

Disclaimer

+ reai# thi& rep'rt, +'$ aree that the $&e ' the re&earch

pr'$ce -+ 7a-r'ck !e&earch i& at +'$r '# ri&k. 8# #'

partic$ar e"e#t i +'$ h' 7a-r'ck !e&earch 'r aiate

part+ ia-e 'r trai# '&&e& ca$&e -+ it& #i#&.

hi& rep'rt i& #'t i#"e&tme#t a"ice, rec'mme#ati'# 'r

&'icitati'# t' -$+ 'r &e a#+ &ec$ritie&. 7a-r'ck !e&earch i&

#'t a rei&tere i#"e&tme#t a"i&'r i# a#+ $ri&icti'#. ;'$

aree t' ' +'$r '# re&earch a# $e iie#ce -e're maki#

a#+ i#"e&tme#t eci&i'# ith re&pect t' &ec$ritie& c'"ere

ithi# thi& rep'rt. + reai# thi& rep'rt +'$ ha"e the



i#"e&tme#t k#'ee t' critica+ a&&e&& the i#'rmati'#,a#a+&i&, chart& a# 'pi#i'#& i"e#.

<& ' the p$-icati'# ate ' thi& rep'rt, 7a-r'ck !e&earch

'e& #'t h' a#+ p'&iti'#, '# 'r &h'rt, hether irect+ 'r

i#irect+, i# the i&&$er%& &ec$ritie&, $#e&& &tate i# the

i&c'&$re.

=$r re&earch a# rep'rt i#c$e& 'rar''ki# &tateme#t&,

e&timate&, pr'ecti'#&, a# 'pi#i'#& prepare ith re&pect t'

am'# 'ther thi#&, certai# acc'$#ti#, ea, a# re$at'r+

i&&$e& the i&&$er ace& a# the p'te#tia impact ' th'&e i&&$e&

'# it& $t$re -$&i#e&&, #a#cia c'#iti'# a# the re&$t& ''perati'#&, a& e a& m're e#era+, the i&&$er%& a#ticipate

'perati# per'rma#ce, acce&& t' capita market&, market

c'#iti'#&, a&&et& a# ia-iitie&. S$ch &tateme#t&, e&timate&,

pr'ecti'#& a# 'pi#i'#& ma+ pr'"e t' -e &$-&ta#tia+

i#acc$rate a# are i#here#t+ &$-ect t' &i#ica#t ri&k& a#

$#certai#tie& -e+'# 7a-r'ck !e&earch%& c'#tr'.

=$r re&earch a# rep'rt e>pre&&e& '$r 'pi#i'#&, hich e ha"e

-a&e $p'# e#era+ a"aia-e i#'rmati'#, e re&earch,

i#ere#ce& a# e$cti'#& thr'$h '$r $e iie#ce a#

a#a+tica pr'ce&&. 7a-r'ck !e&earch -eie"e& a i#'rmati'#

c'#tai#e herei# i& acc$rate a# reia-e, a# ha& -ee#

'-tai#e r'm p$-ic &'$rce& e -eie"e t' -e acc$rate a#



reia-e. ?'e"er, &$ch i#'rmati'# i& pre&e#te @a& i&,Aith'$t arra#t+ ' a#+ ki#, hether e>pre&& 'r impie,

7a-r'ck !e&earch make& #' repre&e#tati'#, e>pre&& 'r

impie, a& t' the acc$rac+, timei#e&&, 'r c'mpete#e&& ' a#+

&$ch i#'rmati'# 'r ith rear t' the re&$t& t' -e '-tai#e

r'm it& $&e. < e>pre&&i'#& ' 'pi#i'# are &$-ect t' cha#e

ith'$t #'tice, a# 7a-r'ck !e&earch i& #'t '-iate t'$pate 'r &$ppeme#t a#+ rep'rt& 'r a#+ ' the i#'rmati'#,

a#a+&i& a# 'pi#i'# c'#tai#e i# them.

Summary of ndings

<. Bict'ria PC &hare price i a 10 -aer i# t' +ear& 'r &a

it& market "a$e i#crea&e -+ 1 time& r'm £15m t' £255m.

. <t the &ame time, it& &ae& i& 'reca&t (i#c$e& 2016%& &ae&)

t' $mp -+ 255 i# the a&t +ear&. ?'e"er, there are #'

c'#&i&te#t ear#i#&.

. Shareh'er& ma+ ha"e recei"e £3/&hare i# &pecia i"ie#

-ack i# 2014, -$t Mr 7ii# t''k a rear ' '"er m &hare&

(e*$i"ae#t t' £100m i# "a$e).

D. he '#+ #a#cia item that ha& i#crea&e m're tha# it& &hare

price i& the #et e-t p'&iti'# hich $mpe r'm £m &i#ce the

arri"a ' Mr 7ii# t' £1m t'a+ (ate&t i#terim re&$t&).



E. here i& a ack ' #a#cia tra#&pare#c+ i# &'me ac*$i&iti'#&.F'r e>ampe, G'-e&i# Cimite &a &tra#e aterta> pr't&

H$ct$ati'# r'm £10m i# 2014 t' £2m i# 2015.

F. he -e&t ac*$i&iti'# it mae i& <-i#'# F''ri# Cimite

-eca$&e it ha& a &tr'# pr$e#t -$&i#e&& ith &tr'# i#ce#ti"e&

t' rear the c'mpa#+ (i taret& meet e>pectati'#).

G. he p$rcha&e ' 8#terH''r Gr'$p ' £65m i& (i# '$r 'pi#i'#)

the 'r&t ac*$i&iti'# -eca$&e 'perati# ca&h H' mi#$&

@i#tere&t paiA a"erae £1.5m per +ear hie it t''k '# #et

e-t ' £50m.

?. De&pite, the&e -$&i#e&&e& reate ac*$i&iti'#& there are #'

&trate+ t' create &+#er+ -etee# &$-&iiarie&.

8. 8#'ri# the I$e&t ac*$i&iti'#, a the re&t i i#crea&e

Bict'ria PC%& &hareh'er&% $# -+ £6.2m that c'&t the

c'mpa#+ £104m. hi& i& -eca$&e 8#terH''r%& e*$it+ i& a

#eati"e £19m.

. G''i a# i#ta#i-e a&&et& acc'$#t 'r 0 'r m're '

the c'mpa#+%& #'#c$rre#t a&&et&.

1. Victorias re!enue growth is "ust a collection of

ac#uisitions



@he &t'ck market i& e ith i#i"i$a& h' k#' the price' e"er+thi#, -$t the "a$e ' #'thi#.A

J Phillip $isher

Bict'ria PC i& a mei$m&iKe arpet ma#$act$rer i# the L

ith pr'ecte re"e#$e at +eare# March 2016 ' £253m. he

achie"eme#t a&#%t r'm i##'"ati'# a# 'ra#ic r'th, -$t

r'm &eecte ac*$i&iti'#&, -'th i# the L a# a-'ar.

Charts comparing sales growth and market cap%

Source: Bict'ria PC.

<ppare#t+, &hareh'er& ere reari# the c'mpa#+ 'r

r'i# &ae& ith a 10 time& i#crea&e i# market "a$ati'#

$ri# the pa&t t' +ear&, -$t m'&t imp'rta#t+ ma#aeme#t

ma#ae& t' ret$r# a &pecia i"ie# e*$i"ae#t t' £3/&hare.

Chart showing special di!idends payout ga!e in!estors

condence to own the stock

http://markets.investorschronicle.co.uk/research/Markets/Companies/Forecasts?s=VCP:LSE

http://markets.investorschronicle.co.uk/research/Markets/Companies/Forecasts?s=VCP:LSE




Sa+, thi& i& a @'#etimeA ea t' &ati&+ a @c'#tract 'r

iNere#ceA 'r the i#c'mi# E=, Ge'N 7ii#&, i# hich he

a& c'#tracte t' ei"er a £3/&hare ret$r# t' &hareh'er& i#

t' +ear& 'r ri&k $p t' £100,000 pa+me#t t' Bict'ria PC (m're

r'm the &tar E= ater).

?'e"er, per'rma#ce ha&#%t -ee# '', reari# the r'th

i# #et ear#i#& a# a ''k at the reati'# -etee# the

c$m$ati"e r'th i# #et ear#i#& a# &ae& &i#ce 2006 a"e

$& thi& i&ti#cti'#:



<& &ae& re, the r'th i# #et ear#i#& ha& -ee# tre#i#

'er. ?ere%& a &imiar chart that i#c$e& the forecast sales

and earnings 'r the peri' e#i# i# March 2016:



Gi"e# the&e ac*$i&iti'#& a& '#e i# 2015 it '$ #'t &$rpri&e

a#+'#e i Bict'ria PC achie"e& the&e re&$t&, -$t the a+ it

'e& a-'$t achie"i# the&e re&$t& that c'$ p$t Bict'ria PC

i# &'me #a#cia i&tre&& 'i# 'rar.

?'e"er, e"e# i Bict'ria PC ma#ae& t' achie"e the&e

re&$t&, the market ha& $+ price i# 2016%& market

e>pectati'# a# the# &'me.



8# &ecti'# 2, e i ''k i#t' the etai& ' Bict'ria PC

ac*$i&iti'#& &i#ce the arri"a ' Ge'N 7ii#.

Credit where credit is due

hi#& are #'t a -a 'r 'er &hareh'er& (th'&e h' ha"e

recei"e the &pecia i"ie#&). heir 'rii#a i#"e&tme#t '$

ha"e -ee# pai -ack ('r m'&t ' it, a#+a+) a# there're,

h'i# Bict'ria PC &hare& i& a ri&kree i#"e&tme#t.

?'e"er, he# +'$ are a #e &hareh'er (th'&e h' ha"e#%t

recei"e the @&pecia i"ie#&A), the# there i& a '' cha#ce

thi& c'mpa#+ -ei#& t' &ee a a i# it& &t'ck price.

e' are the #i#& ' Bict'ria PC.



2. The &Three year' ac#uisition rule

<& me#ti'#e, 8 ha"e &tate the r'th ' Bict'ria PC i& '#

t' it& r'i# aicti'# t' ac*$iri# -$&i#e&&e&. <t r&t a#ce,

m'&t ' the&e ac*$i&iti'#& make &e#&e, a# ith'$t ''ki# at

each ac*$i&iti'# i#epth +'$ c'$ c'#c$e that &+#er+ i&there, a& the+ are a reate -$&i#e&&e&.

he 8#"e&t'r hr'#ice i a &$mmar+ ' Bict'ria PC

ac*$i&iti'#& here:

Acquisitions under Wilding

Last reported financials (£m) EV multiples

Date Cost (£m) Revenue Ebitda AV Revenue Ebitda

Westex Dec 13 12.2 18.7 5.6 17.2 0.65 2.18

Abingdon Sep 14 14.66 75.1 3.4 8.2 0.20 4.31

Whitestone Weavers an 15 8.05 33.! 2.2 5.! 0.24 3.66

"#est A#g 15 11.5 28.1 3.3 2.06 0.41 3.48

$nter%&oor Sep 15 65 72.3 10.0 15 0.!0 6.4!

!otal"#ean $$$%&$ ''%$ '&%' &%*+ ,%&- &%&

So#rce' Whit(an )o*ard ana&+sis, -ictoria p&c, co(pan+ acco#nts

..: 7e&te> i& a &$-&iiar+ ' G'-e&i# Cimite.



?ere i& m+ i#terpretati'#:

(c#uisitions Costs

)*m+

,et prot

)*m+

,et

assets

)*m+

P. P/

G'-e&i#

Cimite

£16m 2 (56

eek&)

£10.4m 1.53

<-i#t'#

F''ri#

Cimite

14.66 2.1 .456 6.9 1.3

7hite&t'#e

7ea"er&

Gr'$p

12.3 3.34 (i#

the r&t 9

m'#th&),

&' 'r 12

m'#th& it&

4.45

6.344 2. 1.94

8#terH''r

Gr'$p

65 0.320 19 e e

I$e&t arpet

Ma#$act$rerPt+ Cimite

11.5 #/a #/a

'ta 119.46Source: 'mpa#+check.c'.$k a# 8#"e&tiate.c'.$k.

he $&e ' E8D< i& t'' 'te# mi&eai#. here're, '#e

&h'$ -e c'#&er"ati"e. ?'e"er, i '#e a& t'ether the

c'&t& ' ac*$i&iti'# (i#'ri# the *$e&t ac*$i&iti'#) it c'me& t'

£10m that i& pr'$ci# #et ear#i#& ' £.23m i"i# a P/E '

http://www.victoriaplc.com/victoriaplc/investors/risnews/regulatorynews_item.jsp?ric=VCP.L.TK&ref=67399

https://companycheck.co.uk/company/05305174/GLOBESIGN-LIMITED/financial-accounts





13.1. Mea#hie, the price t' -''k c'me& i# at a# e>pe#&i"e1.4 time&.

(c#uisitions Deferred

considerations

De0t Cash

G'-e&i#

Cimite

Lp t' £m i# 3

+ear& (&ee

-e' 'retai&)

£0m £0m

<-i#t'#

F''ri# Cimite

Lp t' £4.5m i# 3

+ear& (&ee

-e' 'r

etai&)

£0.9m £0.5m

7hite&t'#e

7ea"er& Gr'$p

£1.5m £3.39m £3.3m

8#terH''r Gr'$p #/a £55m £5.4m

I$e&t arpet

Ma#$act$rer

Pt+ Cimite

<O10.5m

(£4.9m) i# three

+ear&

#/a

Source: 'mpa#+check.c'.$k.

<&', the c'mpa#+ i& ia-e 'r a $rther £1.9m i# pa+'$t&, i

a it& &$-&iiarie& met their mie&t'#e taret&. $t, m're

'rr+i#+, it t''k '# #et e-t ' £50m r'm the&e ac*$ire

&$-&iiarie&. he #a#ce c'&t& i#c$rre i& appr'>imate+ £6.6m

per a##$m (m'&t ' it r'm the ac*$i&iti'# ' 8#terH''r).

1ini-summary



8#'ri# the I$e&t ac*$i&iti'#, Bict'ria pai £104m a# t''k '##et e-t ' £50m (p'&&i-+ m're) 'r £.3m i# #et ear#i#& a#

a that a& t' i#crea&e &hareh'er&% eath -+ *2%3m

(c#uisitions in-depth

(c#uisition 4: 5lo0esign Limited

he £m -'#$& pa+me#t& t' G'-e&i# i '#+ happe# he#

E8D< a"erae& £4.2m per a##$m, a# #et pr't e>cee& the

thre&h' ' £2.m per a##$m.

?'e"er, thi& i& #'t a# i#ce#ti"e t' r' it& i"i&i'# -eca$&e

acc'ri# t' 'mpa#+check.c'm, the c'mpa#+ a& area+

a"erai# £2.m i# aterta> pr't& r'm 2011 t' 2013.

he e-&ite 'mpa#ie&h'$&e.c'm ha& i#& '# G'-e&i#

Cimite acc'$#t&, here there are are part& ' it& i#c'me

&tateme#t mi&&i#. <&', the aterta> pr't& ' £10m (2014)

a# £2m (2015) c'mi# r'm i"ie#& recei"a-e r'm a

h'+'#e &$-&iiar+ i& $#e>pai#e.

F$rtherm're, there i& #' e>pa#ati'# h+ there i& a ri&e i# t'ta

ia-iitie& r'm £2.m i# 2013 t' £11m t'a+ he# a c'mpa#+

i& ch$r#i# '$t pr't&.

(F'r $rther e>pa#ati'#& a# i$&trati'# ' G'-e&i# Cimite,

cick here.)


https://beta.companieshouse.gov.uk/company/05305174/filing-history

http://walbrockresearch.com/supplementary-supporting-information-victoria-plc-carpet-maker-strong-price-performance/


https://beta.companieshouse.gov.uk/company/05305174/filing-history




(c#uisition 3: (0ingdon $looring Limited

8 <-i#'# F''ri# achie"e& £9.5m i# E8 '"er three +ear&

(a# a"erae ' £3.2m), the# it i reap a# e>tra £4.5m i#

$rther pa+me#t&, hich Bict'ria i& ia-e t' pa+ £1.5m each

+ear.

F'r Bict'ria, <-i#'# i& their -e&t ac*$i&iti'# t' ate -eca$&e

the i#ce#ti"e i& there (r'm 2011 t' 2014, the c$m$ati"e E8

came i# at £5.05m) a# 2015%& E8 i& £2.9m.

(c#uisition 6: 7hitestone 7ea!ers 5roup

he -reak'# ' thi& ac*$i&iti'# i& it pa+& £5.4m $pr'#t,

a# the re&t ' the pa+me#t& are &che$e a& ''&:

<. £2.21m '# 31 March 2015 (pai)Q

. £1.4m -+ <pri 2016Q

. £2.53m -+ a#$ar+ 201.

he c'mpa#+ i make a#'ther £1.5m ' eerre

c'#&ierati'# i taret& are met -+ the &$-&iiarie&. 7ater&t'#e

7ea"er& r'$p e#erate £33.9m i# &ae&, -$t the #a#cia

&$-&iiarie& acc'$#t& are a -it 'N.

he&e are 7hite&'me re"eati'#&:



7hite&t'#e i& the 'pp'&ite ' G'-e&i# -eca$&e $#er the@7hite&t'#e 7ea"er Gr'$pA there a& a &eri'$& ack '

#a#cia tra#&pare#c+ ('r e>ampe, &'me &$-&iiarie& i#c'me

&tateme#t& are mi&&i# #a#cia ata).

$t, e"e# ith the tra#&pare#c+, &'me ' it& #a#cia

&tateme#t& ' #'t make &e#&e. ake it& &$-&iiar+, Ga&ke

Macka+, a& a# e>ampe, i# 2014 it ha &ae& ' £5.3m a# the

#i#e m'#th& t' 2015 &ae& ere £4.3m ('r £5.3m a##$a+).

$t he# +'$ ''k at it& -aa#ce &heet r'm 2013 t' 2015 it

''k& ike the c'mpa#+ i& i#i# '# it& 'perati'#& ith

trae e-t'r& a# creit'r& ai# -+ appr'>. 0 each.

a#i-e a&&et& are '# -+ 40. (See ta-e -e')

7e ca# make the &ame a&&$mpti'# a-'$t Bie C'i&tic& ith

&ae& ' £3.2m i# 2014 a# the #i#e m'#th& t' 2015 &ae& ere

£2.9m ('r £3.m 'r the $ +ear). (See ta-e -e')

Ta0le showing the changes in tangi0le assets8 de0tors8

and creditors:

5askell 1ackay View Logistics a#i-e a&&et& Deci#e r'm

£16,33 (2013) t'

£90,656 (2015).

!'&e r'm £06,4

(2013) t' £925,969

(2015). rae e-t'r& Deci#e r'm

£2,339,104 (2013)

Deci#e r'm

£1,012,224 (2013)



t' £1,004 (2015). t' £1,245 (2015). rae creit'r& Deci#e r'm

£1,9,36 (2013)

t' £65,95 (2015).

Deci#e r'm

£1,03,5 (2013)

t' £150,94 (2015).Source: 'mpa#+check&.c'm, Ga&ke Macka+ a# Bie

C'i&tic& acc'$#t&.

he '#+ time +'$ &ee c'ap&i# e-t'r& a# creit'r& i& he#

a -$&i#e&& i& i#i# '# it& 'perati'#& a& 'pp'&e t' a

heath+ -$&i#e&& ith r'i# &ae&.

8# a &eparate ca&e, Ga&ke Macka+ &a it& ca&h -aa#ce

m+&teri'$&+ $mpi# r'm £41,360 t' £1.439m i# a +ear a#

#i#e m'#th&, e&pite maki# £00k i# aterta> pr't& $ri#

the peri'.

(F'r $rther i#'rmati'# h+ thi& '$ -e imp'&&i-e $#e&& it%&

'#e -+ i#ecti# ca&h t' Ga&ke, the# cick here.)

<&', 7hite&t'#e 7ea"er& Cimite (#'t t' -e c'#$&e ith

@r'$pA) &a a &$e# $mp i# aterta> pr't& r'm £33,256

i# 2014 t' £2.645m. hat a& '# t' a# item cae

@e>cepti'#a 'ther 'perati# i#c'meA ' £2.2m, hich, '

c'$r&e, i& $#e>pai#e a# it hepe t' i#crea&e it& e*$it+ r'm

£2.665m t' £5.3m i# '#e +ear

1ini-summary of 7hitestone 7ea!ers 5roup


https://companycheck.co.uk/company/02616354/WHITESTONE-WEAVERS-LIMITED/financial-accounts


https://companycheck.co.uk/company/02616354/WHITESTONE-WEAVERS-LIMITED/financial-accounts



F$rtherm're, the c'&t ' ac*$iri# 7hite&t'#e 7ea"er& Gr'$p'r £12.3m &h'$ rai&e &$&pici'#, e&pecia+ he# it i& maki#

£4m i# #et pr't, a'# ith £3m i# ca&h.

,%/%: he <-i#'# ac*$i&iti'# ' £14.66m a& he# it ha&

=C; £2m i# #et pr't a# £0.6m i# ca&h. 8t &h'$ te +'$

either Bict'ria i& "er+ '' at #e'tiati# the -e&t ea 'r

&'methi# i&#%t riht.

(c#uisition 9: nter;oor 5roup

8 Bict'ria PC a& '' at #i# the -e&t @reate -$&i#e&&e&A

t' -$+ the# thi& '#e &h'$ #'t -ee# mae at a, et a'#e 'r a

price ta ' £65m. e' i& h' the ea a& #a#ce a&

''&:

<. £30.m thr'$h a 2.5m &hare& pr'cee at £12.30/&hare ith

a# aiti'#a 402,633 &hare& R &ame price ' £5m.

. <&', it pace 11,035 &hare& rai&i# £.m 'r 'rki#

capita.

8#terH''r ha& #et &ae& ' £2.29m a# E8D< ' £10.02m at

the e# ' 30 Ma+ 2015.

8, +'$ c'#&ier it& aterta> pr't&, the# it ''k& ike thi&:

http://www.lse.co.uk/share-sharecast-news.asp?shareprice=0O0B&ArticleCode=23291515&ArticleHeadline=Victoria_PLC_completes_Interfloor_deal

http://www.investegate.co.uk/victoria-plc--vcp-/rns/acquisition---placing/201509110700127572Y/

http://www.lse.co.uk/share-sharecast-news.asp?shareprice=0O0B&ArticleCode=23291515&ArticleHeadline=Victoria_PLC_completes_Interfloor_deal

http://www.investegate.co.uk/victoria-plc--vcp-/rns/acquisition---placing/201509110700127572Y/



Source: 8#terH''r Gr'$p Cimite.

M're $re#t+, 8#terH''r a& pa+i# £6.255m i# i#tere&t c'&t&

(i#c$i# pe#&i'# c'&t&) i# 2015 a# thi& ha"e &amp it&

'perati# pr't& ' £5.446m. ?ih i#tere&t c'&t& are aa+&

a&&'ciate ith a -$&i#e&& -ei# hea"i+ i# e-t a# 8#terH''r

'e& £55.633m. he a##$a i#tere&t rate i& a& ''&:

<. £32.5m ' 'a# $e -+ Fe-r$ar+ 2022, it i#c$r& a# i#tere&t '

C8=! (1 H''ri#), p$& 6.5. 8t a& a-e t' re#a#ce a&

mat$rit+ a& $e i# <$$&t 2015.

. 8#tere&t '# the remai#i# £22,05,000 'a# #'te& i& at 0

per a##$m. =# repa+me#t, the 0 'a# #'te& ra#k pari pa&&$

ith the 10 'a# #'te&.

https://companycheck.co.uk/company/05516829/INTERFLOOR-GROUP-LIMITED/financial-accounts

https://s3-eu-west-1.amazonaws.com/document-api-images-prod/docs/fUxTmEuuuYGVfFX_UOMANmo7fo2hRXMfySVvuMfx8q8/application-pdf?AWSAccessKeyId=ASIAJCNNWZGBV5S52AHA&Expires=1458400633&Signature=c91Kruj%2BE9sqfU%2FRhyHzyM%2FqrP4%3D&x-amz-security-token=AQoDYXdzELv%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FwEa4APH3hBvG3mnMY9EH49nAFZsahXUWuvpXfnJlZeHtZKa1zXQnpt17BnVHxPBnlEVNwA9awV0CrGendKhqchynLhGaqprnNH8Tj1aIu26zlcidEnT2YD1lT%2BhaK7fJPce070CFvRv0BzyEWmfQenlr%2BXvJl3rgUsytQnwLZuFsAS1LPsKuqxvNdr7DZNBCnpxpJsbMtSUpvOfzVMot%2BPP5IUi8FWi1lDoc15HuE2YWz9cN2KOGUSahNjLc2EZVkOC65PpK43vm%2B9%2BYHvMfqlhsGEbroegzYPiZa7A3z%2F0ihvwkonWNyKttCBFbsWCeqMXu99LBwgRd%2BMpKuMWG8b3TF%2FmUyRxoyz%2FHHEfPwYqJJM5tjQGXQGZKjQGI5KlA%2FVYJ31wwcYNMEo4gsXTDlyo2LI65bk%2BhI%2Fl%2B5pp%2F3POkvFFStZiJB8qIVfPcttN3PPMJw9z%2BQtD%2FxdmzGMk%2BfoqY5KGnsrbjTUm58pjufjEg%2BvggQz8%2FJqPM1QpAUNJI248hD9bgV1H0H1qVN5rkSKYYYKsHmKXM3KfLmaAffWuRGaUORjWCs8sPY5YWvG8kF%2B3fHekLKSq4SoB9d5%2F%2FdN9PkubUQz017XdoJM8QDZNagSnWlhdux8%2Fe7asELiWc6f5kjgg9bW0twU%3D

https://companycheck.co.uk/company/05516829/INTERFLOOR-GROUP-LIMITED/financial-accounts

https://s3-eu-west-1.amazonaws.com/document-api-images-prod/docs/fUxTmEuuuYGVfFX_UOMANmo7fo2hRXMfySVvuMfx8q8/application-pdf?AWSAccessKeyId=ASIAJCNNWZGBV5S52AHA&Expires=1458400633&Signature=c91Kruj%2BE9sqfU%2FRhyHzyM%2FqrP4%3D&x-amz-security-token=AQoDYXdzELv%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FwEa4APH3hBvG3mnMY9EH49nAFZsahXUWuvpXfnJlZeHtZKa1zXQnpt17BnVHxPBnlEVNwA9awV0CrGendKhqchynLhGaqprnNH8Tj1aIu26zlcidEnT2YD1lT%2BhaK7fJPce070CFvRv0BzyEWmfQenlr%2BXvJl3rgUsytQnwLZuFsAS1LPsKuqxvNdr7DZNBCnpxpJsbMtSUpvOfzVMot%2BPP5IUi8FWi1lDoc15HuE2YWz9cN2KOGUSahNjLc2EZVkOC65PpK43vm%2B9%2BYHvMfqlhsGEbroegzYPiZa7A3z%2F0ihvwkonWNyKttCBFbsWCeqMXu99LBwgRd%2BMpKuMWG8b3TF%2FmUyRxoyz%2FHHEfPwYqJJM5tjQGXQGZKjQGI5KlA%2FVYJ31wwcYNMEo4gsXTDlyo2LI65bk%2BhI%2Fl%2B5pp%2F3POkvFFStZiJB8qIVfPcttN3PPMJw9z%2BQtD%2FxdmzGMk%2BfoqY5KGnsrbjTUm58pjufjEg%2BvggQz8%2FJqPM1QpAUNJI248hD9bgV1H0H1qVN5rkSKYYYKsHmKXM3KfLmaAffWuRGaUORjWCs8sPY5YWvG8kF%2B3fHekLKSq4SoB9d5%2F%2FdN9PkubUQz017XdoJM8QDZNagSnWlhdux8%2Fe7asELiWc6f5kjgg9bW0twU%3D



De&pite, &ae& ' £2.3m, 8#terH''r ha"e #e"er mae a ce#t i#pr't a# ha"e a #eati"e e*$it+ p'&iti'# ' £19m.

here a& a rea p'&&i-iit+ that 8#terH''r c'$ ha"e -ee# i#

ami#i&trati'#, -$t Bict'ria PC &a"e the a+, i#&tea it c'$

ha"e ac*$ire it 'r a racti'# ' the price

(8 +'$ a#t t' rea a-'$t the '"er&tateme#t ' 8#terH''r%&

ca&h H', cick here.)

(c#uisition <: =uest Carpet 1anufacturer Pty Limited

8t i& a# <$&traia# carpet maker hich a& &#appe $p 'r

£11.5m ith a $rther eerre pa+me#t ' £4.9m t' -e pai

'$t i# the #e>t three +ear&.

< e k#' a-'$t I$e&t carpet i& it ha re"e#$e ' £2.1m

a# (#'rmai&e, hate"er that mea#&) E8D< ' £3.3m.

6% The 0iggest winner is 5eo> 7ilding?

Shareh'er& &ti thi#k Mr. 7ii# et& pai £65,000 per +ear.

8#&tea, the "a$e i& c'&er t' £100m (appare#t+ £90m, rea

-e')

+ reai# the c'#tract care$+, +'$ '$ k#' that Mr

7ii# i& re*$ire t' pa+ £20,000. 8# the c'#tract, he i& t'

ei"er £3/&hare t' &hareh'er& i# t' +ear& 'r 'reit -+

pa+i# a $rther £100,000 t' the -$&i#e&&. ' he ha& $e


http://www.investegate.co.uk/victoria-plc--vcp-/rns/acquisition-of-quest-carpets/201508070700164073V/


http://www.investegate.co.uk/victoria-plc--vcp-/rns/acquisition-of-quest-carpets/201508070700164073V/



hi& e# ' the -arai# (hate"er mea#& #ece&&ar+), Mr 7ii#rear i& 50 ' the e#tire -$&i#e&& '# a# i&&$e ' ,0,30

&hare& t' hi& pri"ate h'i# cae ame# ?'i#& Cimite.

<t c$rre#t price&, (,0,30 £14.03/&hare) T £99,440,52.

<# i# <$$&t ' 2015, Mr 7ii# &' 1m &hare& t' @&ati&+A

i#&tit$ti'#a ema#, hie p'cketi# a c'' *44%4@<m% he

$e &ti h'& 41 ' Bict'ria PC.

7ho is the highest rewarded 0oss in the AB

he hihe&t pai E= i& Sir Marti# S'rre, at £43m i# 2014, -$t

he '$#e 7PP -+ taki# '"er a# e>i&ti# -$&i#e&& a#

t$r#i# it i#t' a marketi# c'mpa#+ i# 195 (&' he 'e& #'t

*$ai+). <&', 7PP a& 'rth £20.6-# i# market capitai&ati'#,

1 time& m're tha# Ge'N 7ii#%& c'mpa#+.

S', there're the #e>t @ree"a#tA hihe&t pai -'&& i& e# Ba#

e$re#, the E= ' She at £1.2m a# -+ he &tarte 'rki#

at She &i#ce 193.

', the '#+ *$e&ti'# remai#& i&: @7i Mr 7ii# @'U'aA

the re&t ' hi& h'i#&VA

he $+ mae £11m mi#$& the £20,000. here're, 8 '$#%t

-e &$rpri&e i Mr 7ii# h'& '# t' hi& remai#i# &hare&.

http://www.investegate.co.uk/victoria-plc--vcp-/rns/termination-of-the-contract-for-differences/201407290830025863N/



http://uk.businessinsider.com/uk-ftse100-best-paid-ceos-ranking-2015-8

http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/company-summary/JE00B8KF9B49JEGBXSET1.html

http://www.theguardian.com/business/2015/mar/12/shell-ceo-ben-van-beurden-paid-242m-in-2014




http://uk.businessinsider.com/uk-ftse100-best-paid-ceos-ranking-2015-8

http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/company-summary/JE00B8KF9B49JEGBXSET1.html

http://www.theguardian.com/business/2015/mar/12/shell-ceo-ben-van-beurden-paid-242m-in-2014



9% ow does Victoria PLC stack up

<&&$mi# the @#$m-er&A are acc$rate, et $& c'mpare

"a$ati'# metric& aai#&t it& peer&.

Bict'ria ike& t' $&e E8D< a& a "a$ati'# mea&$reme#t a#,

e"e# '# that -a&i& there i& a# '"er"a$ati'#:

Victoria eadlam Topp Tiles owden

EoineryPrice t'

E8D<

26 11. 11.96 14

Source: M'r#i#&tar.

<ai#&t &imiar -$&i#e&&e& (i# the area ' h'$&eh'

acce&&'rie&), Bict'ria i& tice a& e>pe#&i"e '# it& @a"'$riteA

metric. he rea mea&$re i& #et mari#&& a# '# that -a&i&,

Bict'ria &h'e rea eak#e&&:



2011 2012 2013 2014 2015

5.00

0.00

5.00

10.00

15.00

VictoriaFs ac#uisition uncompetiti!e ac#uisitions

Bict'ria PCD (E)

?'e# 'i#er+ (E)

/'pp& /ie& (E)

?eaam (E))G+

Source: M'r#i#&tar.

=ka+, &' ear#i#& are #'t terric, -$t &$re+ Bict'ria ha& *$ait+

a&&et -acki# r'm the am'$#t ' ac*$i&iti'#& the+ are maki#.

S', a ''k at price t' e*$it+ '$ -e a $&e$ mea&$reme#t.


EoineryPrice t'

E*$it+

4.5 2.33 2.4 10



+ that mea&$reme#t, Bict'ria%& PC i& #'t #'t'ri'$&+e>pe#&i"e.

<# here%&, h' m$ch '$ that c'&t t' -$+ the c'mpa#+%&

&ae&.


EoineryEB (£m) 334 404. 325 2,14Sae& (£m) 253

(pr'ecte)

654 212 1,220

EB/Sae& 1.32 0.62 1.53 2.31

', it%& the time t' &et apart Bict'ria PC r'm it& peer& -+

c'mpari# it& e-t a# the *$ait+ ' it& a&&et&.

Fir&t, +'$ #ee t' &eparate the iNere#t c'mp'#e#t& ' #'#

c$rre#t a&&et&:


EoineryG''i

(£m)

0. 0 0.245 0

8#ta#i-e&

(£m)

. 10 0 4.6

a#i-e&

(£m)

29.4 102.6 4.1 129.2



<#, Bict'ria%& a&&et c'mp'&iti'# i& mae $p ' 65 ''ihie it& ri"a& ha"e c'&e t' Ker' ''i '# it& -''k&, hich

mea#& the rea a&&et-acki# ha& #'t r'#.

e>t, +'$ #ee t' acc'$#t 'r it& e-t, ca&h a# e*$it+:


EoineryDe-t (£m) 90 23.1 44. 0a&h (£m) . 49.1 16.6 166.1E*$it+

(£m)

53.5 14. 10.66 29

', +'$ ca# &ee h' m$ch ' the c'mpa#+%& e-t i& -acke

-+ ca&h a# ta#i-e a&&et&:


EoineryHa&h

-acki#

()

.6 212.6 3.1 #/a

a#i-e

a&&et

-acki#

()

32.6 444.1 105.4 #/a

'ta () 41.2 656. 142.5 #/aDe-t/capit

a

0.62 0.11 0.0 #/a

De-t/e*$it

+

1.6 0.125 4.2 #/a



8t ha& #' e-t.

' the #ake e+e, 'pp& ie& i& the '#e h' i& m'&t at ri&k '

aii# -eca$&e it ha& e"erae it& e*$it+ aai#&t it& e-t&. $t

'pp& ie& e-t i& 3 c'"ere -+ ca&h a# 105 ' ta#i-e

a&&et&.

< '' a+ t' a&&e&& the *$ait+ ' it& i#ta#i-e& 'r ta#i-e&

i& t' ' 'r the $$ar a# ''k 'r @ree ca&h H'A, a# i#

'pp& ie%& ca&e, it mae £9.4m (2014) a# £6.5m (2015) '

ree ca&h H' hich c'$ -e $&e t' pa+ 'N e-t 'r $#

i"ie#&.

?'e"er, that i&#%t the ca&e 'r Bict'ria PC -eca$&e it '#+ ha&

.6 ' e-t -acke -+ ca&h a# 32.6 -+ ta#i-e a&&et&. <#&i#ce it%& ac*$iri# c'mpa#ie&, the# ree ca&h H' i& a #eati"e

£10.m i# 2015 a# it 't 'r&e i# it& ate&t i#terim (a #eati"e

£20m i# ree ca&h H').

<% (fter the pleasure comes the pain

7e me#ti'#e e-t i# the pre"i'$& &ecti'#, -$t +'$ #ee t'

ha"e &'me pre&pecti"e ' the e"erae Bict'ria PC i& c'mi#

$#er.



0

10

20

30

40

50

60

0

0

90

100

43%94I%63J%J@44%@6J%4 @%J2J%<< J%2

42%2@

6J%2@

JJ%K2

Spending spree

De-t

)*m+


e're Mr 7ii# arri"e, #a#ce c'&t& ' the -$&i#e&& i# 2013

ere £400,000.

', #a#ce c'&t& are e>pecte t' ri&e -+ £6.6m -+ +eare#

2016 (i# it& i#terim, it a& area+ pa+i# £1.54m) a# m'&t '

it a& c'mi# r'm it& ac*$i&iti'# ' 8#terH''r.

,%/%: he t'ta i#tere&t c'&t& ' #'t i#c$e the I$e&t

ac*$i&iti'#

Dilution of e#uity



<th'$h, &hareh'er& are '-i"i'$& t' the i#crea&e i# the#$m-er ' &hare& r'm 6.9m t' 1.2m (the rear ' m

&hare& t' Mr 7ii#) i# the a&t e +ear& -+ &e#i# the &hare

price thr'$h the r''.

@% Se!eral !aluations you should consider for

Victoria PLC

e're the take'"er ' Mr 7ii#, Bict'ria PC a& maki# '#

a"erae 19.49 pe#ce per &hare -etee# 2006 a# 2012, &ae&

ere a"erai# £63.1m i# the &ame peri', -$t the market

"a$ati'# a& a mea&+ £16.1m (a ar cr+ r'm the c$rre#t

£254m "a$e).

<#a+&t& ha"e pr'ecte re"e#$e ' £253.4m he# Bict'ria

rep'rt& it& #e>t a##$a re&$t ater i# the +ear, a'# ith the

'reca&t it i make 1 pe#ce per &hare i# pr't, e*$i"ae#t '

£12m (m're etai -e').

F'r a air c'mpari&'#, Bict'ria PC &h'$ make .2 pe#ce per&hare '# £253.4m i# &ae& i it%& t' em$ate the a-'"e peri'.

here're, a market "a$e ' £1m, 'r £4.45/&hare i& the air

"a$e ' it& -$&i#e&&.

$t i# it& ate&t i#terim re&$t&, it ma#ae& '#+ 1.2 pe#ce per

&hare, &' here i it make 69.2 pe#ce r'm t' match it&

'reca&t ' achie"i# 1 pe#ce per &hare.

http://www.fool.co.uk/company/?_action=forecasts&ticker=LSE-VCP

http://www.fool.co.uk/company/?_action=forecasts&ticker=LSE-VCP



<#'ther a+ t' "a$e the &hare& i& t' acc'$#t 'r the

c'mpa#+%& 'perati# a&&et&.

Ba$e per &hare T ('perati# a&&et& J De-t)/$m-er ' &hare&.

he#, )*4IJ%<m - *JKm+4J%4Km *4%I@ per share.

he a-'"e "a$ati'#& are '# Bict'ria%& pre"i'$& market

"a$ati'# a# acaemic &hare price "a$ati'#.

$t i +'$ ''k at a &imiar&iKe -$&i#e&& ike ?eaam that trae

at 15 time& P/E (reHecti# the c$rre#t -$ market "a$ati'#),

the# ear#i#& at Bict'ria #ee t' -e ar'$# £1m

8 Bict'ria PC achie"e& a £m aterta> pr't& r'm £12m pre

ta> pr't&, the# thi& &ti mea#& t'a+%& "a$ati'# i& @&k+hih.A

a&e '# ?eaam%& m$tipe ' 15 time& ear#i#&, the# t'a+%&

"a$ati'# 'r Bict'ria PC &h'$ c'me i# at )*Jm

*4@m+H*49%I< *2%24share%

hat%& e&pite ?eaam ha& #et ca&h ' £26m, ta#i-e a&&et

-acki# ' '"er £106m, a# ear#& a c'#&i&te#t 45 i# #et

mari#&.

The $uture

7he# Bict'ria rep'rt& it& #a re&$t at the e# ' $+ 2016, #et

ear#i#& '$ #'t -e £12m, -$t '$ ike+ c'me i# ar'$#



£m£9m acc'ri# t' it& &$-&iiarie&% re&$t& (8 e&timate £1m£1.5m i# #et pr't& 'r I$e&t, i"e# that E8D< i& £3.3m).

Bict'ria ha& #'t re"eae the e*$it+ ' 8#terH''r i& a #eati"e

£19m, a# he# it 'e& the# (i#'ri# the I$e&t ac*$i&iti'#), it

mea#& it ae =C; £6.2m t' e*$it+ r'm it& "e ac*$i&iti'#&.

he# there are tak& a-'$t -$+i# Ca#' arpet&, -$t at the

m'me#t thi& i& &pec$ati'# a# #'thi# m're $#ti Bict'ria PC

make& a# a##'$#ceme#t.

Share price direction

8 preict that -etee# #' a# $+ 2016 the &hare& i trae-etee# £15/&hare a# £10/&hare. <# ater the

a##'$#ceme#t ' it& #a re&$t& the taret price at +eare# i&

£5/&hare.

Post-report

he c'mpa#+ ha& p'&te a $+ear trai# $pate &tati# (pre

ta>) pr't& are ahea ' market e>pectati'#, a# there '$

-e reater #et e-t re$cti'# ith the &hare& p'ppi# $p t'

£15/&hare.

Disclosure



8 ha"e #' p'&iti'#& i# a#+ &t'ck& me#ti'#e, a# #' pa#& t'i#itiate a#+ p'&iti'#& ithi# the #e>t 2 h'$r&. 8 r'te thi&

artice m+&e, a# it e>pre&&e& m+ 'pi#i'#&. Pea&e ' +'$r

'# re&earch a# &eek pr'e&&i'#a i#"e&tme#t a"ice.

Victoria PLC: - The carpet maker with a strong price performance

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Transcript of Victoria PLC: - The carpet maker with a strong price performance