Carpet chief buys up rivals for wall to wall wealth

LIKE Harpin, Victoria chairman Geoff Wilding has a vested interest in delivering returns for shareholders. He owns a £220 million stake in the carpet manufacturer – representing 23 per cent of the firm.

To date, Wilding’s commitment to generating wealth for investors has been pretty faultless. Midas recommended the shares in March 2016, when they were the equivalent of 275½p. By March this year, they had risen to 438½p and they have since almost doubled to 835p.

Wilding’s strategy seems relatively simple – buy small carpet makers, integrate them into the company and drive down costs as a result.

Initially focused on the UK and Australia, the group has expanded into Europe, moving beyond carpets into hard flooring.

Earlier this month, Wilding bought Spain-based Keraben for £245 million, having spent up to £50 million on Italian Ceramiche just a couple of weeks earlier. Both companies specialise in ceramic tiles, which often look like marble or granite, used on floors, walls and even worktops.

Following these acquisitions, more than 60 per cent of Victoria’s profits will be generated outside the UK – no bad thing, given that the economy here seems to be slowing down just as Europe speeds up.

The group announces half-year results this week, which are likely to reflect Wilding’s confidence in the future, despite a tricky UK market. Brokers expect full-year profits of £38.8 million for the year to March 2018, up nearly 32 per cent year-on-year and soaring to £71 million in 2019. Midas verdict: Wilding is a man on a mission but cautious investors may still wish to hedge their bets by selling some shares and banking a profit after the stock’s recent heady performance. Don’t sell out completely though.