Victoria PLC (LSE:VCP) has reported an increase in organic revenue for the financial year to the end of August 2026 and outlined a proposed refinancing that would reduce its senior secured debt and preferred equity liabilities by at least £300 million.
The flooring manufacturer said organic revenue increased approximately 4% year-to-date, rising to around 6% when excluding temporarily constrained rugs revenue associated with the relocation of production to Turkey.
The company continues to manage input cost pressures while implementing operational improvements and prioritising liquidity.
Victoria is targeting £70 million in net proceeds from property and non-core asset disposals during FY27. Approximately £26 million has already been realised, with the remaining proceeds expected to support liquidity and ongoing operational activities.
The board has also outlined a refinancing proposal designed to reduce the group’s senior secured debt and preferred equity liabilities by at least £300 million.
Under the proposed arrangements, annual financing costs are expected to decline by approximately £34 million, while the issuance of new notes maturing in 2031 would extend the group’s debt repayment timetable.
Victoria has secured support for the refinancing from holders representing more than 90% of its senior secured notes, the holder of all its preferred shares and shareholders representing approximately 30.4% of its share capital.
The company has scheduled a general meeting for 5 October 2026, when shareholders will be asked to approve key elements of the transaction.
Subject to the necessary approvals and completion requirements, Victoria expects the refinancing to be finalised in December 2026.
The proposed transaction is intended to reduce the group’s financial liabilities, lower financing expenses and address near-term equity dilution risk.
Victoria PLC manufactures carpets, rugs and other flooring products, with operations across the UK, North America and Australia. The company is pursuing operational improvements, asset disposals and changes to its capital structure as part of its financial and business strategy.
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