Victoria PLC (LSE:VCP), the international flooring manufacturer and distributor, reported approximately 5% organic revenue growth for the six months ended 30 September 2026, compared with the corresponding period a year earlier, while higher input costs and the relocation of Balta’s manufacturing operations affected profitability.
Excluding Balta, organic revenue growth reached approximately 7% during the first half of the company’s 2027 financial year. Victoria said it continued to gain market share across its UK, North American and Australian operations despite pressures affecting its end markets.
EBITDA Performance Reflects Balta Production Relocation
Victoria expects first-half EBITDA, excluding Balta, to be slightly above the corresponding period of FY26 and approximately 45% higher than the second half of FY26.
However, the relocation of Balta’s production facilities to Turkey temporarily affected divisional profitability, with EBITDA from the business falling £3.8 million below the prior-year period.
The company confirmed that the operational transition has been completed and manufacturing volumes are increasing in line with its planned production schedule.
Balta currently has €34 million in backorders supporting the production ramp-up. Victoria expects the division to reach its targeted manufacturing volumes during the fourth quarter, with the full annualised financial benefit of the relocation project anticipated before the beginning of FY28.
Rising Energy and Raw Material Costs Affect Trading
Victoria reported increases in oil- and gas-related input prices over recent months, adding to manufacturing costs across the business.
The company said pricing adjustments and cost-reduction measures are helping offset these increases, although the Board acknowledged that persistently higher input prices could have a negative impact on profitability.
Management intends to provide further financial guidance when the Group publishes its half-year results.
Asset Disposals Target £70 Million in FY27 Proceeds
Victoria continues to prioritise liquidity management and remains focused on its programme of surplus and non-core asset disposals.
The Group is targeting total net proceeds of £70 million from these transactions during FY27, with approximately £26 million generated to date.
This leaves around £44 million of additional net proceeds required to meet the company’s full-year disposal target.
Refinancing Transaction Expected to Complete in December
Alongside its trading update, Victoria announced the launch of a Consent Solicitation connected with its previously disclosed comprehensive refinancing transaction.
The company reported that more than 90% of its Senior Secured Noteholders have already agreed to support the proposed refinancing, exceeding the approval threshold required for the Consent Solicitation.
Victoria said the refinancing process remains on its anticipated timetable, with completion expected on or around 10 December 2026.
Executive Chairman Comments on Operational Performance
Geoff Wilding, Executive Chairman of Victoria, said:
“Operational progress has been strong this year with sales initiatives growing market share, improved factory productivity, and lower overhead costs. It is frustrating that the sharp rise in energy and raw material costs are masking much of the improvement, but we are focussed on securing price increases and additional efficiencies to compensate, and I am confident in the direction of travel.”
More About Victoria PLC
Victoria PLC is an international designer, manufacturer and distributor of flooring products, with operations across markets including the UK, North America and Australia.
The Group’s current operational priorities include completing the production ramp-up at Balta’s relocated manufacturing facilities, managing energy and raw material costs, executing planned asset disposals and completing its refinancing transaction.
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