REG - Victoria PLC - Half-Year Trading Update

VictoriaAnnouncement

Today 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:20251106:nRSF3954Ga&default-theme=true

RNS Number : 3954G  Victoria PLC  06 November 2025

 

6 November 2025

 

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')

 

Half-Year Trading Update

 

Victoria PLC (LSE: VCP), the international designer, manufacturer and
distributor of innovative flooring, provides its usual trading update for the
six-month period ended 27 September 2025 ahead of publishing its half-year
financial results in December.

 

Year-to-Date Trading and Outlook

 

Revenue was in line with previous guidance. Demand across Victoria's markets
remained soft, with an improvement in average selling prices partially
offsetting a year-on-year decline in volumes. Whilst overall H1 revenue was
approximately 7% behind last year, there was an improving trend in the period
with a c.11% decline in Q1 followed by a c.2% decline in Q2.

 

Targeted cost savings across the business more than offset the impact of lower
volumes. Underlying EBITDA improved to c.£53m for the half, compared to £50m
in the prior year, representing a margin improvement of more than 120bps.
Excluding the prior year impact of a favourable gas hedging position, this
improvement was approximately 250bps.

 

The Board continues to expect an improving trend in year-on-year revenue
performance in H2, although the Board remains mindful of external risks,
including softening US consumer confidence, political developments in France,
ongoing weakness in the USD and AUD, and uncertainty surrounding the
forthcoming UK budget. As a result, revenue for FY26 is expected to be
slightly below FY25. However, the actions already taken this year are expected
to drive margins and underlying EBITDA ahead of last year. Further cost
savings through the balance of the year and into FY27 will also be targeted.

 

Management's immediate focus remains on delivering self-help initiatives
outlined at the recent full year results (which, when completed, are expected
to deliver £70m annual EBITDA improvements vs FY25), generating cash to
deleverage, and rebuilding the Company's credit rating.

 

Progress on self-help initiatives

 

The Board confirms that all self-help initiatives required to deliver the
targeted £20m savings in FY26 have now been completed. Additional savings
have been delivered ahead of guidance and will support further margin
improvement over the remainder of the financial year.

 

Key self-help initiatives targeted to drive improvement in underlying EBITDA
in FY27 and FY28 have also progressed in line with expectations. In
particular, the development of the V4 Ceramics line in Spain remains on track
to begin trial production this month, and negotiations with the unions
regarding the relocation of rug production from Belgium to Turkey have
successfully concluded in line with our expectations, with related headcount
reductions and equipment transfers now underway. Further detail on progress on
these initiatives will be provided with the half-year results.

 

Management continue to review various cashflow optimisation initiatives, and
updated capex and working capital guidance will be provided as part of the
half-year results. Management is also identifying surplus properties for
disposal, which will supplement liquidity as transactions complete.

 

Capital structure

 

In the period, the Company successfully refinanced its 2026 debt maturities.
This released additional liquidity, extended the Group's maturity profile, and
strengthened the Company's long-term capital structure. Whilst the Company no
longer has any short-term maturities, to further improve the Company's
capital structure, the Board continues to progress refinancing plans for the
benefit of all stakeholders including to address its 2028 senior secured
notes.

 

Cash at the period end was £86m, and Group liquidity remains sufficient, with
approximately £100m of further undrawn debt capacity permissible under the
Group's bond documentation.

 

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 Walbrook 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

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

 Ben Wright, Harry Nicholas, Tom Ballard

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

                                       (mailto:victoria@walbrookpr.com)
 Paul McManus, Alice Woodings

                                         +44 (0)7980 541 893 / +44 (0)7407 804 654

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

 Alex Simmons                                                              alex.simmons@edelmansmithfield.com (mailto: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
approximately 5,350 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  TSTDBBDBRSGDGUU



            Copyright 2019 Regulatory News Service, all rights reserved