Group credit rating affirmed

Victoria PLC

05 October 2023

 

Victoria PLC

('Victoria' or the 'Company')

Group credit rating affirmed

Deleveraging anticipated

Victoria PLC (LSE: VCP), the international designers, manufacturers and distributors of innovative flooring, advised that international credit rating agency Fitch Ratings yesterday affirmed the Company's credit rating following a recent review that stated:

"Fitch Ratings has affirmed Victoria PLC's Long-Term Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. Fitch has also affirmed Victoria's senior secured notes at 'BB+' with a Recovery Rating of 'RR2'.

The rating balances Victoria's high leverage with the group's good diversification and strong market position. Victoria's exposure towards higher-end customers supports its ability to pass on incremental costs without a major impact on their volumes in a recessionary environment.

The Stable Outlook reflects the group's strong ability to integrate its new acquisitions, resulting in incremental EBITDA across the rating horizon to 2026. Despite a delay in deleveraging compared with Fitch's expectations, strong working-capital management and limited growth capex are likely to result in positive free cash flow (FCF) generation to promote deleveraging from 2025."

The full rating can be viewed using this link: https://www.fitchratings.com/research/corporate-finance/fitch-affirms-victoria-plc-at-bb-outlook-stable-04-10-2023

For more information contact:

Victoria PLC Geoff Wilding, Executive Chairman Philippe Hamers, Group Chief Executive Brian Morgan, Chief Financial Officer		www.victoriaplc.com/investors-welcome Via Walbrook PR
Singer Capital Markets (Nominated Adviser and Joint Broker) Rick Thompson, Phil Davies, James Fischer			[phone]
Berenberg (Joint Broker) Ben Wright, Richard Bootle			[phone]
Peel Hunt (Joint Broker) Adrian Trimmings, Andrew Clark			[phone]
Walbrook PR (Media & Investor Relations) Paul McManus, Louis Ashe-Jepson, Alice Woodings	[phone] or [e-mail] [phone] / [phone] / [phone]

About Victoria PLC (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, 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 7,300 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.

 

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