Victoria PLC (LSE:VCP) has agreed to a €34.4 million sale-and-leaseback of its Belgian distribution centre to Avantage Property Holding BV, while continuing to operate the facility as the primary European hub for Balta Rugs following the relocation of most manufacturing to Turkey.
The transaction price significantly exceeds the asset’s net book value, enabling the company to unlock capital while maintaining uninterrupted operations at a strategically important logistics site.
Net cash proceeds from the deal will initially remain on the balance sheet. Together with the disposal of two additional surplus properties, the funds are expected to fully cover exceptional costs and capital expenditure tied to the transfer of rug manufacturing to Turkey.
Management said the production relocation and capacity expansion at Balta’s Turkish facility are expected to be completed during the current financial year. Once operational, the changes are intended to improve efficiency and support Victoria’s goal of increasing earnings and cash flow per share.
Despite these operational initiatives, Victoria’s broader outlook remains constrained by financial pressures, including declining revenue, substantial losses and a highly leveraged balance sheet with negative equity. Technical indicators show some support through strong momentum trends, although overbought signals suggest potential near-term volatility. Management commentary has highlighted efforts to improve EBITDA and margins, but high net debt levels and macroeconomic headwinds continue to weigh on the company’s investment case, with valuation metrics remaining unappealing amid ongoing losses.
More about Victoria
Victoria PLC is an international manufacturer and distributor of flooring products headquartered in Worcester, U.K., and listed on AIM. Founded in 1895, the group produces and supplies carpets, underlay, ceramic tiles, luxury vinyl tiles, artificial grass and related flooring accessories across Europe, the United States and Australia. The company is Europe’s largest carpet manufacturer and the leading producer of underlay in both Europe and Australia, operating more than 30 facilities and employing over 5,000 people worldwide.
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