REG - Victoria PLC - Group credit rating affirmed

VictoriaAnnouncement

05/10/2023 07:00

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RNS Number : 7409O  Victoria PLC  05 October 2023

Victoria PLC

('Victoria' or the 'Company')

 

Group credit rating affirmed

Deleveraging anticipated

 

Victoria PLC (LSE: VCP), the international designers, manufacturers and
distributors of innovative flooring, advised that international credit rating
agency Fitch Ratings yesterday affirmed the Company's credit rating following
a recent review that stated:

 

"Fitch Ratings has affirmed Victoria PLC's Long-Term Issuer Default Rating
(IDR) at 'BB-' with a Stable Outlook. Fitch has also affirmed Victoria's
senior secured notes at 'BB+' with a Recovery Rating of 'RR2'.

 

The rating balances Victoria's high leverage with the group's good
diversification and strong market position. Victoria's exposure towards
higher-end customers supports its ability to pass on incremental costs without
a major impact on their volumes in a recessionary environment.

 

The Stable Outlook reflects the group's strong ability to integrate its new
acquisitions, resulting in incremental EBITDA across the rating horizon to
2026. Despite a delay in deleveraging compared with Fitch's expectations,
strong working-capital management and limited growth capex are likely to
result in positive free cash flow (FCF) generation to promote deleveraging
from 2025."

 

The full rating can be viewed using this link:
https://www.fitchratings.com/research/corporate-finance/fitch-affirms-victoria-plc-at-bb-outlook-stable-04-10-2023
(https://www.fitchratings.com/research/corporate-finance/fitch-affirms-victoria-plc-at-bb-outlook-stable-04-10-2023)

 

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

 Peel Hunt (Joint Broker)                                                                       +44 (0)20 7418 8900

 Adrian Trimmings, Andrew Clark

 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

 

 

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 7,300 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.

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