Investors urged to shun consortium which is ‘trying to take control of carpet maker’

CARPET manufacturer Victoria Plc has urged investors not to back a consortium which it says is trying to take control of the group on the cheap.

The company, which put itself up for sale after shareholders attempted to oust its non-executives, said the consortium is trying to seize control without paying for it.

New Fortress Finance Holding and former Victoria chairman Alexander Anton want to remove the company’s two non-executive directors, chairman Nikki Beckett and Peter Jensen, and replace them with Lady Katherine Innes Ker, Geoff Wilding, Alexander Anton and Sir Bryan Nicholson.

They have called for a meeting to vote on the changes.

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Yesterday Victoria said: “This minority shareholder group is trying to take control of the company without telling the board or the majority of shareholders of their reasons for demanding change or their strategy for the business.

“Furthermore, they are offering no financial consideration in exchange for control of the company. Shareholders are urged not to undertake to support the requisitioners’ resolutions.”

Victoria said putting itself up for sale will realise value for investors while safeguarding all stakeholders’ interests.

The group yesterday said it is trading in line with its targets, adding growth with department store chain John Lewis, the general insurance market and the contract sector has helped its quarterly UK sales increase 11 per cent in a tough retail climate.

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But Victoria said like-for-like sales across its entire operation dipped 0.7 per cent in the October to December quarter, versus 2010, dragged down by Irish and Australian trading. Total revenues were up 3.5 per cent.

The group, which spins yarn at its mill in Holmfirth, said when UK sales were combined with its Irish trading, they still showed a 4.1 per cent gain.

Australian sales were driven down 3.9 per cent by concerns about its mining sector.

Victoria said sales so far this year have been up in the UK, but slightly down in Australia. It said this performance “reflects favourably” against rivals. Carpet retailer Carpetright recently issued a profits warning.

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