Trading Update

Victoria PLC
07 October 2005                                                 


Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Friday, 7th October 2005
                                                               Embargoed: 7.00am

                                VICTORIA P.L.C.

                                TRADING UPDATE

In advance of the announcement on 23rd November 2005 of interim results for the
half year to 1st October 2005, the Directors of Victoria P.L.C. wish to provide
the following update on current trading and the outlook for the full year.

United Kingdom
We stated in the Annual Report in June that, we anticipated that economic and
market conditions were likely to remain difficult for at least the remainder of
this financial year.

Since then, consumer sentiment has deteriorated, with further falls in house
prices, a continuing low level of housing transactions and a further downturn in
consumer spending, particularly on 'big ticket' items.

Against this background, Victoria Carpets has accelerated its programme of new
product introductions. On a like for like basis (i.e. excluding Axminster sales)
up to the end of August, carpet sales volumes and turnover have increased by
4.1%.

Whilst it is pleasing to be able to make any progress in the current
environment, we have been prevented from reaching the levels of sales that we
had expected to achieve by the worsening market conditions. We have also seen a
change in sales mix towards 'value' products which carry a lower margin for us.
As a result, planned improvements in the profitability of the continuing
business have still to come through.

Moreover, having experienced significantly worse than expected trading in August
and September, we now anticipate that consumer demand will remain depressed for
the remainder of this financial year.

Australia
The tightening in the Australian economy is now very much in evidence and its
effects are being felt in lower consumer spending. Inevitably, and as we
expected, this has led to a reduced demand for carpets.

Our strategy for the Australian market has been to maintain the increased market
share we have attained over the last three years, and, despite the reduced
market demand, our carpet sales volumes up to the end of August were only
marginally down on the same period last year.

Achieving this volume of sales in a market which is currently over-supplied has
however had a cost in terms of pricing and profit margin. Although we had
anticipated margins to be tighter this year, we are currently achieving a lower
level of profitability than we had expected.

Outlook
The interim results are expected to show a small increase over the same period
last year. However, in the light of current trading conditions and the lack of
any visible upturn in market prospects, the Directors are now taking a more
cautious view of the outlook for the remainder of the financial year. Therefore,
the Group's profits for the full year are likely to be significantly lower than
current market expectations.

The Board remains confident that each of the Group's businesses is taking
advantage of the current down-turn to improve its market position, and that the
Group remains in a strong position to exploit market conditions to the full.

Despite these challenging conditions and the Board's current assessment of the
prospects for the remainder of the year, the Directors are aiming, in the
absence of any further unforeseen circumstances, to maintain the level of annual
dividend payment to shareholders.



Enquiries:
Fiona Tooley
Citigate Dewe Rogerson
Tel: [phone]
Mobile: [phone]

Alan Bullock, Group Managing Director
Victoria P.L.C.
Today: 01484 685215 (up to 3.00pm)
Thereafter: 01562 749640
Mobile: [phone]

Mark Lee, Group Finance Director
Tel: [phone]

www.victoria.plc.uk





                      This information is provided by RNS
            The company news service from the London Stock Exchange