Business
Manufacturing Reorg in Australia & Trading Update
Manufacturing Reorg in Australia & Trading Update.
About this update from Victoria Plc
[{"type":"text","content":"\n \nRNS Number : 1700R Victoria PLC 13 June 2018 \n\nThe information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.\n13 June 2018\nVictoria PLC\n('Victoria,' the 'Company,' or the 'Group')\n \nManufacturing Reorganisation in Australia and Trading Update\n \nVictoria PLC, (LSE: VCP) the international designers, manufacturers and distributors of innovative flooring, today announces the next phase of the Group's post-acquisition operational integration. \nOn 26 June 2017, the Group announced plans to reorganise its UK operations to improve efficiency and increase capacity. Significant progress has been made, with the rationalisation of the UK manufacturing footprint completed, and the strengthened UK logistics network - including the Southern distribution centre - on track to be fully operational later this year. \nThe Group continues to identify and realise synergy opportunities arising from our acquisitions and is today announcing a consolidation and investment in relation to its underlay business in Australia. \nStreamlining of Australia underlay manufacturing\nThe Group acquired its Australian underlay business as part of the purchase of Dunlop Flooring in January 2017. There are currently two manufacturing sites, in Sydney and Melbourne. The Group has decided to focus all manufacturing on the existing site in Sydney and to close the Melbourne operation when the current lease expires in 2019. Together with an investment of approximately A$2.1m (£1.2m) in new technology, this move is expected to improve raw material processing, finishing and packaging at the Sydney site. The combination of consolidation and investment will increase flexibility and result in a more efficient and productive operation. This project is expected to complete during the second half of 2019.\nTrading update\nPreliminary audited results for the year-ended 31 March 2018 will be announced on 24 July 2018.\nIn the first two months of the new financial year trading has been robust, with the Group's sales performance showing like-for-like growth over the same period in the prior year of over 3%[1]. With this posit...