Victoria PLC (LSE:VCP) said trading conditions remain difficult, reporting third-quarter revenue approximately 3% lower year on year, an improvement compared with the 7% decline recorded during the first half. The reduction was mainly linked to lower shipment volumes as rug manufacturing transitions from Belgium to Turkey. Excluding the rugs segment, third-quarter revenue declined by around 1.5%. Continued weak consumer confidence and softer retail footfall in January have led the board to revise expectations, now forecasting FY26 revenue to come in roughly 5% below FY25 levels and post-IFRS16 EBITDA of about £95 million, below previous market forecasts.
Management is prioritising initiatives aimed at improving profitability, including initial sales from a new ceramics production line in Spain, ongoing relocation of rug manufacturing to Turkey, and continued integration of its UK underlay and Australian operations. Alongside operational measures, the company is advancing several balance-sheet actions, such as progressing property disposals, tightening management of receivables and inventory, and engaging with lenders and capital providers on refinancing options, including plans relating to its 2028 senior secured notes.
Victoria’s outlook remains pressured by declining revenues and elevated leverage levels, reflecting ongoing financial strain. Technical indicators point toward a bearish trend, and valuation metrics remain unattractive due to weak profitability. While strategic initiatives outlined by management indicate potential longer-term improvement, they have yet to outweigh current operational and market headwinds.
More about Victoria
Victoria PLC is an international manufacturer and distributor of flooring products headquartered in Worcester, UK, and listed on AIM. The company designs and supplies carpets, rugs, underlay, ceramic tiles, luxury vinyl tiles, artificial grass and flooring accessories across markets in the UK, Europe, North America and Australia. Operating more than 30 sites and employing over 5,000 people, Victoria is Europe’s largest carpet producer and the leading underlay manufacturer in both Europe and Australia.
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