CARPET maker Victoria, which made the carpet used in Westminster Abbey for 2012's royal wedding, has entered into a sale and leaseback agreement for its factory in Worcester Road, Kidderminster for £5.8m in cash. The lease with Monopro is for a 20-year term at an initial rent of £495,000 per annum and subject to annual RPI uplifts between 0 per cent and 4 per cent. Current net book value of the property is approximately £4.9m, resulting in a profit on sale – after associated costs – of about £700,000.

In a statement to the Stock Exchange, Victoria said proceeds from the deal would be used to strengthen its balance sheet. In November the company managed to claw itself back into the black. Revenue slipped to £34.5m in the six months to September 28, but the group climbed from a £1.5m pre-tax loss in the half-year in 2012 to a £86,000 profit. Victoria also agreed, in December, a £16m reverse takeover deal with Yorkshire rival Globesign and its subsidiary Westex Carpets.