Floored: Victoria shares plummet 18 per cent as profit projections slip
Flooring company group Victoria suffered an 18 per cent drop in its shares this morning after revealing that profit margins would be lower than market expectations.
First-half revenue had risen “in a challenging market” by more than three per cent in the six months to the end of September when compared with the same period a year earlier.
However, the Kidderminster-based firm revealed that it would be falling short of projections in the wake of its decision to reduce prices and gain a greater share of the market.
The firm added: “The Australia segment, which represents circa 18 per cent of pro-forma group sales, has experienced slower performance in the year-to-date, with a circa four per cent decline in sales against what was a very strong comparative period, with the business previously benefiting from an exceptionally buoyant local housing market over the past two years.”