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2022-04-12 16:45 London Stock Exchange RNS Trading Statement Trading Update : Ahead of Expectations VICTORIA PLC Released 07:00:07 13 October 2021 Trading Update : Ahead of Expectations -07 : 00 : 07 13 Oct 2021 - VCP News article | London Stock Exchange RNS Number : 86040 Victoria PLC 13 October 2021 This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation ( EU ) 596/2014 as it forms part of UK domestic law by virtue of the European Union ( Withdrawal ) Act 2018 ( " MAR " ) , and is disclosed in accordance with the Company's obligations under Article 17 of MAR . Victoria PLC ( ' Victoria , ' the ' Company , ' or the ' Group ' ) 13 October 2021 Trading Ahead of Market Expectations Half - Year Trading Update Victoria PLC , ( LSE : VCP ) the international designers , manufacturers and distributors of innovative flooring , provides the following trading update . The Board is pleased to announce that the Group's underlying profit before tax will be ahead of consensus market expectations for the financial year ending 2 April 2022 . Trading Group revenue continues to increase , driven by strong consumer demand for flooring products : Victoria's Italian ceramic business has its full production output now sold out until Q2 2022 - an unprecedented situation - and management are actively working on plans to further increase capacity . The UK logistics operation , which is going from strength to strength , continues to provide a compelling service proposition to Victoria's customers , flooring retailers , driving market outperformance in Victoria's UK soft flooring business . Australian lockdowns , the longest in the world , will come to an end in October , and we are anticipating a strong contribution to H2 , following a limited , but profitable , contribution in H1 . The Group's extensive Luxury Vinyl Tile ( ' LVT ' ) product range continues to grow . After more than two decades in the European market , where it was invented , LVT continues to replace laminates and sheet vinyl as a floor covering , with the market share of soft flooring and ceramic tiles broadly unchanged for the last 15 years , comprising around 60 % of flooring purchased in Victoria's primary markets . Victoria's artificial grass business goes from strength to strength . Although there has been sharp price increases in the raw materials for artificial grass , since the pandemic European consumers ' preference for locally produced product rather than Far East imports has been noticeable . The demand for flooring experienced this year has primarily come from existing home owners redecorating . However , the Board expects demand to continue next year and beyond , due to the high level of housing transactions that has been experienced in many of the Group's key markets this year . Housing sales are a good 12-18 month leading indicator of remodelling - led demand for flooring , which is Victoria's core market . Operating Margins and Inflation As previously reported , operating margins were broadly maintained during H1 . Although the significant inflationary pressures experienced earlier in the year on many raw materials have eased somewhat , energy and other costs continue to rise . Therefore , the Group will continue to actively manage input and output pricing with suppliers and customers to protect margins on a LFL basis . There is always a time lag in passing on costs , but the Group has demonstrated its pricing resilience over the last nine years with steadily increasing operating margins , despite a wide range of trading conditions . Supply Chain security There has been considerable commentary in recent months about supply chain issues being experienced across a variety of industries . Whilst long lead times are seen for LVT products , the Board is pleased to advise that with generally short and diversified supply lines , along with the Group entering this period with a greater - than - normal level of raw materials having anticipated possible supply issues , the company is not experiencing problems with production and delivery of its flooring . Chief Executive , Philippe Hamers , said : " Managing our way successfully and profitably through the extraordinary conditions of the last 18 months , with pandemic lockdowns followed by inflation and supply challenges , has highlighted the value of having the industry's best https://www.londonstockexchange.com/news-article/VCP/trading-update-ahead-of-expectations/15171124 1/3