REG - Victoria PLC - FY2025 Trading Update

VictoriaAnnouncement

06/05/2025 07:00

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RNS Number : 4347H  Victoria PLC  06 May 2025

Victoria PLC

('Victoria,' the 'Company,' or the 'Group')

 

FY2025 Trading Update

 

Victoria PLC, (LSE: VCP) the international designers, manufacturers and
distributors of innovative flooring, is providing an update on trading for the
year ending 29 March 2025 ("FY2025").

 

The Board confirms that FY2025 revenue will be at least £1.11bn, and that
post-IFRS 16 EBITDA margins will be broadly in line with market expectations.

 

At a group level, Q4 FY2025 has shown sequentially improving EBITDA margins
reflecting the "self-help" initiatives being implemented across the business,
and it is expected to be the most profitable quarter of the year, and
significantly ahead of the equivalent period of FY2024.

 

These "self-help" initiatives remain a key focus of the Group's plan for
FY2026.

 

Notably, since January, the Group's UK businesses have had successive monthly
improvements in year-on-year LFL revenue performance and are benefitting from
increasing profitability.

 

The Board continues to assess the impact of any potential US tariff changes.
Approximately 80% of the Group's activities are in non-US markets, so any
direct impact is limited to a small proportion of the Group. Whilst the
potential tariff impact remains dynamic, the Board notes that the US flooring
industry does not possess the domestic production capacity to meet demand
currently, so imports will continue to be a key feature of the sector for the
medium term. Furthermore, many of our competitors are based in countries
expected to attract higher tariffs than Victoria's businesses, potentially
improving our relative competitiveness.

 

FY2026 is expected to benefit from the run-rate productivity improvements
already achieved, and the ongoing implementation of our "self-help"
initiatives, as well as the lower interest rate environment. However, the
Board believes it is prudent to adopt a more cautious outlook until the impact
of the recent tariff announcements - particularly the secondary effects on
consumer sentiment and competitor reaction - can be more fully determined.

 

Discussions regarding the Group's refinancing are well advanced and continue
to progress positively.

 

Geoff Wilding, Executive Chairman of Victoria PLC, said:

"I am pleased with the progress we are making across our business. While the
macro environment remains uncertain, the actions we have taken position us
well for the years ahead."

 

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

 Alec Pratt, Chief Financial Officer Designate

 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, Harry Nicholas, Tom Ballard

 Edelman Smithsfield (Joint Investor Relations)                           +44 (0)7970 174 353 or alex.simmons@edelmansmithsfield.com

 Alex Simmons

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

 Paul McManus / Alice Woodings           +44 (0)7980 541 893 / +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 5,600 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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