LONDON (ShareCast) - (Sharecast News) - Floor coverings outfit Victoria increased revenues and profits in the first half of its trading year thanks to a "continued successful execution" of the group's growth strategy.
Revenues shot up 44% to £273.4m and underlying EBITDA soared 85% to £45.4m - partly driven by Victoria's 360 basis point improvement to its EBITDA margin at 16.6%. Earnings per share increased 37% in the six months ended 29 September to 17.91p.

Cash generated from operations doubled to £34.8m.

However, an increase in one-off exceptional costs in the period, resulting from the acquisition of Ceramica Saloni and other M&A activity, saw the AIM-listed firm turn in an operating profit of £13.6m - just 5% stronger year-on-year.

Net debt ballooned 247% to £342.7m after the acquisition in August, though there remained "significant" headroom against bank covenants.

Executive chairman Geoff Wilding, said: "Victoria continued to make strong operational progress during the period.

"We again delivered against our strategy designed to grow market share, improve cash generation, and increase earnings per share, via both acquisition and organically, and we continue to focus on synergies and integration to ensure operational excellence within the group."

He said management is confident in the outlook and believes that Victoria is on track to meet its objectives for the current financial year, with material market share gains in the UK expected to secure long-term earnings growth.

The Australian businesses expected to return to growth next year and Europe is showing greater than expected operational synergies in Spain together with strong performance from the profitable Italian business.

As of 0845 GMT, Victoria shares had claimed 3.79% at 492.50p.

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