REG - Victoria PLC - Board Changes & Q3 Update

VictoriaAnnouncement

08/01/2025 07:00

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RNS Number : 4835S  Victoria PLC  08 January 2025

 

 

Victoria PLC

('Victoria' or the 'Company')

 

Board Changes &

Q3 Update - Confirmation of Trading Outlook

 

Trading & Outlook

The Board of Victoria PLC (LSE: VCP), the international designers,
manufacturers and distributors of innovative floorcoverings, is pleased to
provide an update on trading for the year ending 30 March 2025, with trends
consistent with those highlighted at the time of the announcement of the
interim results on 26 November 2024. While consumer demand remains subdued, we
continue to expect H2 trading to be stronger driven by management actions
alongside a small improvement in demand, with full-year FY2025 earnings
expected to be in line with consensus market expectations. 1 

 

We are encouraged by the progress of the company's initiatives to improve
productivity and take market share, which continue to positively impact
profitability. With £12 million permanently removed from our fixed cost base
during first half of the year, a further £20 million per annum of savings is
being executed during FY2025:

 

 ·    Balta                                                                                     +£10 million
 reorganisation
 ·    UK distribution integration                                                               +£5 million
 ·    UK underlay integration                                                                   +£4 million
 ·    Spanish ceramics equipment upgrade                                                        +£3 million
 ·    Cali Flooring reorganisation                                                              +£6 million
 ·    Group-wide procurement                                                                    +£4 million

 

Consequently, it is expected that the positive impact on FY2026 earnings will
be circa £32 million in total and the cumulative cost savings targeted by the
end of FY2027 is expected to be in excess of £80 million.

 

The Board remains confident that as demand normalises, Victoria's revenues
will recover in the medium term, accompanied by a sharp increase in earnings.
Due to the higher operational leverage now inherent in the business, mid-high
teen EBITDA margins are achievable. Furthermore, the anticipated benefit of
the 'self-help' initiatives described above and other projects, together with
the recently observed uptick in housing transactions - which is known to
correlate with future flooring demand - now underpins the Board's view of
improved financial performance in the forthcoming two years.

 

Board Changes

The Company is also pleased to announce the appointment of Joe Scribbins to
the Board as a Non-Executive Director of Victoria PLC, following the
resignation of Blake Ressel, who is leaving Koch Equity Development LLC
("KED") to pursue another career opportunity.

 

Mr Scribbins, who holds an MBA from Massachusetts Institute of Technology
Sloan School of Management, joined KED in 2011 and is currently a Managing
Director of KED.  Mr Scribbins founded and leads KED's Commercial Excellence
team.

 

KED indirectly holds a 10.96% shareholding in Victoria PLC. via an affiliate,
Wood River LLC ("Wood River").

 

Geoff Wilding, Executive Chairman of Victoria PLC, said:

"Firstly, I would like to thank Blake for his contribution and support over
the last four years, which have not always been easy, and wish him well with
his future career.

 

I am delighted to welcome Joe to the Board of Victoria.  His operational
expertise and experience as the Managing Director of the Commercial Excellence
team at KED will be invaluable as Victoria executes on several projects to
maximise earnings and cash flow."

 

Mr Scribbins commented:

"I am very much looking forward to joining the Board. My team and I have
invested considerable time with Victoria's operational management over the
last quarter and I am confident there is significant internal opportunity to
optimise earnings over the next 12 months. Notwithstanding the current soft
demand environment, Victoria is a solid business with a leading position in
many of its markets, and we look forward to continuing to provide support for
the Company's optimisation efforts."

 

Additional information in respect of the AIM Rules

Mr Scribbins, aged 41, is currently a member of the board of managers of CPM
Holdings LLC and, effective 1 January, is expected to be appointed to the
board of directors of Champ Holding Corporation. He held no other
directorships or partnerships during the previous five years.

 

Mr Scribbins is indirectly interested in 10.96% of Victoria by virtue of the
Wood River shareholding.

 

The Company confirms that there is no other information which is required to
be disclosed pursuant to Schedule 2 paragraph (g) of the AIM Rules for
Companies.

 

 

For more information contact:

 

 Victoria PLC                                                                                         www.victoriaplc.com/investors-welcome

                                                                                                    (http://www.victoriaplc.com/investors-welcome)
 Geoff Wilding, Executive Chairman

                                                                                                    Via Walbrook PR
 Philippe Hamers, Group Chief Executive

 Brian Morgan, Chief Financial Officer
 Singer Capital Markets (Nominated Adviser and Joint Broker)                                          +44 (0)20 7496 3095

 Rick Thompson, Phil Davies, James Fischer

 Berenberg (Joint Broker)                                                                             +44 (0)20 3207 7800

 Ben Wright, Richard Bootle

 Walbrook PR (Media & Investor Relations)                +44 (0)20 7933 8780 or victoria@walbrookpr.com

                                                       (mailto:victoria@walbrookpr.com)
 Paul McManus, Louis Ashe-Jepson,

                                                       +44 (0)7980 541 893 / +44 (0)7747 515 393 /
 Alice Woodings

                                                       +44 (0)7407 804 654
    Edelman Smithfield (Refinancing Media Relations)

    Alex Simmons

                                                            +44 (0)7970 174 353

 

(( 1 )) The latest Group-compiled view of expectations for FY25-27:

 All numbers        FY2025                    FY2026                    FY2027

 £ millions         analyst expectations      analyst expectations      analyst expectations
                    Range        Consensus    Range        Consensus    Range        Consensus
 Revenue            1,147-1,180  1,163        1,190-1,216  1,203        1,234-1,245  1,239
 Gross Profit       376-N/a      -            417-N/a      -            437-N/a      -
 Operating Profit   30-32        31           69-80        74           75-96        85
 Pre-IFRS16 EBITDA  88-93        90           126-138      132          133-156      144
 NWC Movement       0-21         10           2-6          4            1-6          3
 Tax                0-16         8            -3-2         -1           -4--2        -2
 Maintenance Capex  58-60        59           60-65        62           60-65        62

Analyst coverage is undertaken by Singer Capital Markets and Berenberg.

 

About Victoria PLC (www.victoriaplc.com (http://www.victoriaplc.com) )

 

Established in 1895 and listed since 1963 and on AIM since 2013 (VCP.L),
Victoria PLC, is an international manufacturer and distributor of innovative
flooring products. The Company, which is headquartered in Worcester, UK,
designs, manufactures and distributes a range of carpet, flooring underlay,
ceramic tiles, LVT (luxury vinyl tile), artificial grass and flooring
accessories.

 

Victoria has operations in the UK, Spain, Italy, Belgium, the
Netherlands, Germany, Turkey, the USA, and Australia and employs
approximately 6,300 people across more than 30 sites. Victoria is Europe's
largest carpet manufacturer and the second largest in Australia, as well as
the largest manufacturer of underlay in both regions.

 

The Company's strategy is designed to create value for its shareholders and is
focused on consistently increasing earnings and cash flow per share via
acquisitions and sustainable organic growth.

 

About Koch Equity Development LLC ("KED")

Koch Equity Development is the principal investment and acquisition arm of
Koch, Inc. ("Koch"), one of the largest privately held businesses in America.
Since 2012, KED has deployed more than $35 billion in equity investments and
acquisitions. With revenue as high as $125 billion, Koch companies employ
about 120,000 people worldwide, with nearly half of those in the United
States.

 

 

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