Sales fall at carpet firm as board feud escalates

The manufacturer, which has a site in West Yorkshire, insisted group trading has been “satisfactory, particularly in the light of the prevailing difficult market and economic conditions” in its markets of the UK, Ireland and Australia.

Victoria said trading in the UK and Ireland remained “extremely tough during the first half, with both weak consumer sentiment and the impact of the Jubilee and Olympics reducing footfall on the high street”.

Even so, UK sales are “significantly” ahead of a year earlier, it said, as it gains market share. Victoria said it continues to grow sales with department store chain John Lewis, the insurance sector and contract and export markets. It hopes the launch of new vinyl tiles and other carpet products will offset further weakness in the UK and Ireland.

However, sales in Australia continue to deteriorate, after falling nearly 11 per cent in its first quarter. It has not seen the normal August and September sales pick-up, forcing short-time working at its operations in Australia. Restructuring there has cost it £860,000.

But despite the group sales fall in the six months to the end of September, Victoria said it has held or increased market share across its business.

Victoria said it is hard to predict whether poor market conditions will continue. Its final quarter is usually its strongest.

It expects to break even in the first half, before exceptional costs and after investment.

The company has a yarn-spinning mill in Holmfirth where it employs 124 staff. Westwood Yarns supplies the group’s carpet-making business and other carpet firms.

The firm said it has cut debt and secured new banking facilities which expire in 2015. “This will provide the board with the financial capacity to grow the business,” it said.

Shareholders tomorrow vote on the controversial appointment of three new directors and the removal of its chairman, Katherine Innes Ker, and another non-executive director, David Garman.

Rebel investors, led by former directors Geoff Wilding and Anton Alexander, a descendant of the company’s founder, claim the boardroom overhaul will improve shareholder returns.

But the company insists the new team plan to break the group up and install a lucrative incentive scheme.

Victoria said in the light of the planned board changes, it has also suspended a move to AIM, the junior stock market.

The company has agreed the sale of an unused sports ground in Kidderminster to the local authority for £850,000, after gaining planning permission for the site.