Board Changes & Q3 Update
Victoria PLC
('Victoria' or the 'Company')
Board Changes &
Q3 Update - Confirmation of Trading Outlook
Trading & Outlook
The Board of Victoria PLC (LSE: VCP), the international designers, manufacturers and distributors of innovative floorcoverings, is pleased to provide an update on trading for the year ending 30 March 2025, with trends consistent with those highlighted at the time of the announcement of the interim results on 26 November 2024. While consumer demand remains subdued, we continue to expect H2 trading to be stronger driven by management actions alongside a small improvement in demand, with full-year FY2025 earnings expected to be in line with consensus market expectations.[1]
We are encouraged by the progress of the company's initiatives to improve productivity and take market share, which continue to positively impact profitability. With £12 million permanently removed from our fixed cost base during first half of the year, a further £20 million per annum of savings is being executed during FY2025:
|
· Balta reorganisation |
+£10 million |
|
· UK distribution integration |
+£5 million |
|
· UK underlay integration |
+£4 million |
|
· Spanish ceramics equipment upgrade |
+£3 million |
|
· Cali Flooring reorganisation |
+£6 million |
|
· Group-wide procurement |
+£4 million |
Consequently, it is expected that the positive impact on FY2026 earnings will be circa £32 million in total and the cumulative cost savings targeted by the end of FY2027 is expected to be in excess of £80 million.
The Board remains confident that as demand normalises, Victoria's revenues will recover in the medium term, accompanied by a sharp increase in earnings. Due to the higher operational leverage now inherent in the business, mid-high teen EBITDA margins are achievable. Furthermore, the anticipated benefit of the 'self-help' initiatives described above and other projects, together with the recently observed uptick in housing transactions - which is known to correlate with future flooring demand - now underpins the Board's view of improved financial performance in the forthcoming two years.
Board Changes
The Company is also pleased to announce the appointment of Joe Scribbins to the Board as a Non-Executive Director of Victoria PLC, following the resignation of Blake Ressel, who is leaving Koch Equity Development LLC ("KED") to pursue another career opportunity.
Mr Scribbins, who holds an MBA from Massachusetts Institute of Technology Sloan School of Management, joined KED in 2011 and is currently a Managing Director of KED. Mr Scribbins founded and leads KED's Commercial Excellence team.
KED indirectly holds a 10.96% shareholding in Victoria PLC. via an affiliate, Wood River LLC ("Wood River").
Geoff Wilding, Executive Chairman of Victoria PLC, said:
"Firstly, I would like to thank Blake for his contribution and support over the last four years, which have not always been easy, and wish him well with his future career.
I am delighted to welcome Joe to the Board of Victoria. His operational expertise and experience as the Managing Director of the Commercial Excellence team at KED will be invaluable as Victoria executes on several projects to maximise earnings and cash flow."
Mr Scribbins commented:
"I am very much looking forward to joining the Board. My team and I have invested considerable time with Victoria's operational management over the last quarter and I am confident there is significant internal opportunity to optimise earnings over the next 12 months. Notwithstanding the current soft demand environment, Victoria is a solid business with a leading position in many of its markets, and we look forward to continuing to provide support for the Company's optimisation efforts."
Additional information in respect of the AIM Rules
Mr Scribbins, aged 41, is currently a member of the board of managers of CPM Holdings LLC and, effective 1 January, is expected to be appointed to the board of directors of Champ Holding Corporation. He held no other directorships or partnerships during the previous five years.
Mr Scribbins is indirectly interested in 10.96% of Victoria by virtue of the Wood River shareholding.
The Company confirms that there is no other information which is required to be disclosed pursuant to Schedule 2 paragraph (g) of the AIM Rules for Companies.
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
|
+44 (0)20 7496 3095 |
|
|
|
Berenberg (Joint Broker) Ben Wright, Richard Bootle |
+44 (0)20 3207 7800
|
|
|
|
Walbrook PR (Media & Investor Relations) Paul McManus, Louis Ashe-Jepson, Alice Woodings
Alex Simmons |
+44 (0)20 7933 8780 or victoria@walbrookpr.com +44 (0)7980 541 893 / +44 (0)7747 515 393 / +44 (0)7407 804 654
+44 (0)7970 174 353 |
||
|
|
|
||
[1] The latest Group-compiled view of expectations for FY25-27:
|
All numbers £ millions |
FY2025 analyst expectations |
FY2026 analyst expectations |
FY2027 analyst expectations |
|||
|
|
Range |
Consensus |
Range |
Consensus |
Range |
Consensus |
|
Revenue |
1,147-1,180 |
1,163 |
1,190-1,216 |
1,203 |
1,234-1,245 |
1,239 |
|
Gross Profit |
376-N/a |
- |
417-N/a |
- |
437-N/a |
- |
|
Operating Profit |
30-32 |
31 |
69-80 |
74 |
75-96 |
85 |
|
Pre-IFRS16 EBITDA |
88-93 |
90 |
126-138 |
132 |
133-156 |
144 |
|
NWC Movement |
0-21 |
10 |
2-6 |
4 |
1-6 |
3 |
|
Tax |
0-16 |
8 |
-3-2 |
-1 |
-4--2 |
-2 |
|
Maintenance Capex |
58-60 |
59 |
60-65 |
62 |
60-65 |
62 |
Analyst coverage is undertaken by Singer Capital Markets and Berenberg.
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 6,300 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.
About Koch Equity Development LLC ("KED")
Koch Equity Development is the principal investment and acquisition arm of Koch, Inc. ("Koch"), one of the largest privately held businesses in America. Since 2012, KED has deployed more than $35 billion in equity investments and acquisitions. With revenue as high as $125 billion, Koch companies employ about 120,000 people worldwide, with nearly half of those in the United States.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 1 hour ago Johnson Matthey
- 2 hours ago Galliford Try
- 2 hours ago Galliford Try
- 2 hours ago Centrica
- 3 hours ago Smith & Nephew