A non-material typographical
change has been made to the 'Divestment of B3 Ceramics Danismanlik
("Graniser")'
announcement released on 19
November 2024 at 07.00 under RNS No 7690
The changes are identified
with an asterisk (*).
The full amended text is
shown below.
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' or the
'Group')
Divestment of B3 Ceramics Danismanlik
("Graniser")
Leverage & Earnings
enhancing
Continuity of tile
supply
Victoria PLC, (LSE: VCP) the
international designers, manufacturers and distributors of
innovative flooring, announces that it has sold
Graniser, the
Group's ceramic tile manufacturer based in Izmir,
Turkey.
Key terms and rationale for the
Sale
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Total consideration paid by the
buyer, Mr Hasan Akgün, was €36.8 million (£30.9m1) paid
as to €10.0 million (£8.4 m1) cash on completion, plus
the assumption of €26.8 million (c. £22.5m1) of net
debt.
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A long-term supply agreement for the
supply of Victoria Group-specific ceramic tiles at
manufactured-cost pricing, which is expected to positively impact
Victoria's earnings.
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Graniser has been negatively
impacted by recent instability in several of its key markets, and
for the 12 months ended 30 March 2024,
Graniser generated audited underlying revenues of TL994.8 million
(c. £30.1m2) and underlying EBITDA of TL13.4 million (c.
£0.9m2). Net assets as per the Group's accounts was
TL632.4 million (£13.7m2).
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Mr Akgün* is a member of the highly
respected Akgün family, who established Akgün Group
in 1925. The Akgün Group
operates in construction materials, automotive, insurance,
logistics and oil sectors across Turkey and internationally.
Whilst remaining family-owned, it is now
one of the largest companies in Turkey with 5,000
employees and 17 factories.
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Victoria's original investment case
for the acquisition of Graniser was the diversification of the
Group's ceramic tiles manufacturing footprint into a lower energy,
labour, and raw material price environment. With the long-term
manufactured-cost supply agreement this thesis remains wholly
intact with the sale of the business - but with the advantage of
freeing up capital for deployment elsewhere in the balance
sheet.
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Philippe Hamers, Group Chief
Executive of Victoria, commented:
"Having experienced a difficult
demand environment recently, the sale of Graniser to, and
partnership with, Mr Akgün will provide
Victoria's ceramic tiles business continued access to
cost-effective tiles whilst contributing towards the deleveraging
of the Group's balance sheet by reducing leverage by
approximately 0.5 times.
"For the avoidance of doubt, the
sale of Graniser will have no impact on our other Turkish
businesses, which employ 900 people extruding synthetic fibre for
our soft flooring factories, and manufacturing rugs for export to
Europe and the United States, and remain an important part of the
Group."
The person responsible for
arranging the release of this announcement
on behalf of the Company is
Brian Morgan, Chief Financial Officer.
Notes
1Converted to GBP at a rate of 1.19 GBP/EUR.
2Average GBP/TL conversion rate of 34.41
For more
information contact:
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Victoria
PLC
Geoff Wilding, Executive Chairman
Philippe Hamers, Group Chief
Executive
Brian Morgan, Chief Financial
Officer
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www.victoriaplc.com/investors-welcome
Via Walbrook PR
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Singer Capital
Markets (Nominated Adviser and Joint Broker)
Rick Thompson, Phil Davies, James
Fischer
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+44 (0)20 7496
3095
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Berenberg
(Joint Broker)
Ben Wright, Richard Bootle
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+44 (0)20 3207
7800
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Walbrook PR
(Media & Investor Relations)
Paul McManus, Louis Ashe-Jepson,
Alice Woodings
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+44 (0)20 7933 8780
or victoria@walbrookpr.com
+44 (0)7980 541 893 /
+44 (0)7747 515 393 /
+44
(0)7407 804 654
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Edelman Smithfield (Refinancing Project)
Alex
Simmons
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+44
(0)7970 174 353
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About Victoria
PLC (www.victoriaplc.com)
Established in 1895 and listed since 1963 and
on AIM since 2013 (VCP.L), Victoria PLC, is an international
manufacturer and distributor of innovative flooring products. The
Company, which is headquartered in Worcester, UK, designs,
manufactures and distributes a range of carpet, flooring underlay,
ceramic tiles, LVT (luxury vinyl tile), artificial grass and
flooring accessories.
Victoria has operations in the UK, Spain,
Italy, Belgium, the Netherlands, Germany, Turkey, the
USA, and Australia and employs approximately 6,300 people
across more than 30 sites. Victoria is Europe's largest carpet
manufacturer and the second largest in Australia, as well as the
largest manufacturer of underlay in both regions.
The Company's strategy is designed to create
value for its shareholders and is focused on consistently
increasing earnings and cash flow per share via acquisitions and
sustainable organic growth.