Victory Corp registers solid growth of 10.6 from cosmetics & jewellery business

22 Jun '05

12 min read

BUSINESS ACTIVITIES
VIRGIN ACTIVITIES
Virgin Cosmetics and Jewellery
The Direct Selling business saw the introduction of Jewellery products in January 2005, which, combined with Cosmetics recorded a total sales increase of 11.0% for the year. I anticipate the business continuing to grow strongly in the UK over the next two years, with our emphasis on maintaining the motivation and business opportunities available for our Consultants and Managers.

During the last three financial years, our self-employed Managers and Consultants had been permitted to buy stocks of product directly from the Company's bonded warehouse, one consequence of which was to give the Company a distinct VAT advantage. In the Chancellor's Pre Election Budget Announcement, specific references were made to changes in the legislation governing the procedure upon which our Warehouse operations have been structured, that will bring to an end this VAT advantage.

Virgin Cosmetics and Jewellery Direct
Virgin Cosmetics and Jewellery Direct, which accounts for 82% of Group sales, had a mixed year. In the first eight months of the year, the business experienced a slower than anticipated sales growth of 5%, with sales being relatively flat during September through to the last week in November.

The retail climate in the UK was very challenging and Christmas in Direct Selling came late, just as it did in the High Street, but December proved to be a good sellingt, which accounts for 82% of Group sales, had a mixed year. In the first eight months of the year, the business experienced a slower than anticipated sales growth of 5%, with sales being relatively flat during September through to the last week in November.

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