REG - Victoria PLC - Trading Update

VictoriaAnnouncement

Mon 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260223:nRSW9939Ta&default-theme=true

RNS Number : 9939T  Victoria PLC  23 February 2026

 

23 February 2026

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

 

Victoria PLC

('Victoria' or the 'Company')

 

Trading Update

 

Victoria PLC (LSE: VCP), the international designer, manufacturer and
distributor of innovative flooring, provides a trading update and outlook for
FY2026.

 

Year-to-Date Trading and Outlook

 

The year-on-year revenue trend in Q3 improved showing a c.3% decline vs c.7%
decline in H1. Lower shipment volumes as the Rugs business transitions
manufacturing from Belgium to Turkey accounted for over half of the revenue
decline in Q3. This was partially offset by ongoing market share gains and
customer wins in UK Carpets, and a strong performance in Australia in
particular. Excluding Rugs, year-on-year revenue declined approximately 1.5%
in Q3.

 

Trading in the first half of January, however, was significantly impacted by
weak consumer confidence and weak footfall at our end customers due to
geopolitical events across our key markets: western Europe; North America and
the UK. Whilst recent weeks have shown improvements in trading, the board now
expects Q4 revenue to be below its previous expectations and approximately 5%
below FY25.

 

As a result, the board expects post-IFRS16 EBITDA to be approximately £95m
for FY26 as a whole*.

 

 

Progress on EBITDA improvement initiatives

 

Management's immediate focus remains on delivering EBITDA improvement
initiatives within our control.

 

The first sales from the new V4 ceramics line in Spain are being delivered in
Q4, which will drive growth and improved EBITDA in our Spanish ceramics
business through FY27 and beyond.

 

The relocation of Rugs manufacturing from Belgium to Turkey also continues to
progress in line with expectations, albeit shipping disruptions have been
greater than anticipated.

 

The first stages of integrating our UK Underlay businesses and Australian
businesses announced at the HY results are also expected to be completed
before the end of March.

 

Whilst a lower starting point on volume will reduce the outlook for 2027, the
currently disclosed EBITDA improvement initiatives remain on track, and
further EBITDA improvements have been identified across the divisions and will
be quantified as part of the ongoing budget process.

 

The board and business recognises the need to continue to adapt to the lower
volume environment and drive efficiency improvements ahead of both domestic
and international competition within its local markets.

 

Increased rigor in tracking these improvements is being implemented along with
broader governance improvements, and further detail of these initiatives will
be provided in due course.

 

Capital structure and cash initiatives

 

The Company remains focused on strengthening its capital structure and
continues to engage with all its capital providers to progress refinancing
plans for the benefit of all stakeholders including to address its 2028 senior
secured notes.

 

The cash initiatives outlined at the half year results are advancing. Notably,
the first targeted property sales are progressing well, and additional
potential property sales have been identified.

 

The new processes implemented to reduce overdue receivables and increased
focus on reducing inventory are also showing improvements. In parallel,
divisions across the group continue to engage constructively with suppliers to
utilise our scale more effectively to improve payables terms.

 

* The Company considers that market expectations prior to the release of this
announcement for FY26 to have been revenue of £1064m and post-IFRS16 EBITDA
of £110.7m

 

The person responsible for arranging the release of this announcement

on behalf of the Company is Alec Pratt, Chief Financial Officer.

 

 

For more information contact:

 

 Victoria PLC                                                    www.victoriaplc.com/investors-welcome

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

                                                               Via Edelman Smithfield PR
 Philippe Hamers, Group Chief Executive

 Alec Pratt, Chief Financial Officer

 Singer Capital Markets (Nominated Adviser & Joint Broker)       +44 (0)20 7496 3095

 Rick Thompson, Phil Davies, James Fischer, Samed Ethemi

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

 Ben Wright, Harry Nicholas, Tom Ballard

 Edelman Smithfield (Investor Relations)                         +44 (0)7970 174 252 or

 Alex Simmons                                                    alex.simmons@edelmansmithfield.com

 

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, rugs, 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 over 5,000
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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTGLGDDCSDDGLX



            Copyright 2019 Regulatory News Service, all rights reserved