Trading Update
Summary by AI BETAClose X
23 February 2026
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
Victoria PLC
('Victoria' or the 'Company')
Trading Update
Victoria PLC (LSE: VCP), the international designer, manufacturer and distributor of innovative flooring, provides a trading update and outlook for FY2026.
Year-to-Date Trading and Outlook
The year-on-year revenue trend in Q3 improved showing a c.3% decline vs c.7% decline in H1. Lower shipment volumes as the Rugs business transitions manufacturing from Belgium to Turkey accounted for over half of the revenue decline in Q3. This was partially offset by ongoing market share gains and customer wins in UK Carpets, and a strong performance in Australia in particular. Excluding Rugs, year-on-year revenue declined approximately 1.5% in Q3.
Trading in the first half of January, however, was significantly impacted by weak consumer confidence and weak footfall at our end customers due to geopolitical events across our key markets: western Europe; North America and the UK. Whilst recent weeks have shown improvements in trading, the board now expects Q4 revenue to be below its previous expectations and approximately 5% below FY25.
As a result, the board expects post-IFRS16 EBITDA to be approximately £95m for FY26 as a whole*.
Progress on EBITDA improvement initiatives
Management's immediate focus remains on delivering EBITDA improvement initiatives within our control.
The first sales from the new V4 ceramics line in Spain are being delivered in Q4, which will drive growth and improved EBITDA in our Spanish ceramics business through FY27 and beyond.
The relocation of Rugs manufacturing from Belgium to Turkey also continues to progress in line with expectations, albeit shipping disruptions have been greater than anticipated.
The first stages of integrating our UK Underlay businesses and Australian businesses announced at the HY results are also expected to be completed before the end of March.
Whilst a lower starting point on volume will reduce the outlook for 2027, the currently disclosed EBITDA improvement initiatives remain on track, and further EBITDA improvements have been identified across the divisions and will be quantified as part of the ongoing budget process.
The board and business recognises the need to continue to adapt to the lower volume environment and drive efficiency improvements ahead of both domestic and international competition within its local markets.
Increased rigor in tracking these improvements is being implemented along with broader governance improvements, and further detail of these initiatives will be provided in due course.
Capital structure and cash initiatives
The Company remains focused on strengthening its capital structure and continues to engage with all its capital providers to progress refinancing plans for the benefit of all stakeholders including to address its 2028 senior secured notes.
The cash initiatives outlined at the half year results are advancing. Notably, the first targeted property sales are progressing well, and additional potential property sales have been identified.
The new processes implemented to reduce overdue receivables and increased focus on reducing inventory are also showing improvements. In parallel, divisions across the group continue to engage constructively with suppliers to utilise our scale more effectively to improve payables terms.
* The Company considers that market expectations prior to the release of this announcement for FY26 to have been revenue of £1064m and post-IFRS16 EBITDA of £110.7m
The person responsible for arranging the release of this announcement
on behalf of the Company is Alec Pratt, Chief Financial Officer.
For more information contact:
|
Victoria PLC Geoff Wilding, Executive Chairman Philippe Hamers, Group Chief Executive Alec Pratt, Chief Financial Officer |
www.victoriaplc.com/investors-welcome Via Edelman Smithfield PR |
|
|
|
|
Singer Capital Markets (Nominated Adviser & Joint Broker) Rick Thompson, Phil Davies, James Fischer, Samed Ethemi |
+44 (0)20 7496 3095
|
|
|
|
|
Berenberg (Joint Broker) Ben Wright, Harry Nicholas, Tom Ballard |
+44 (0)20 3207 7800 |
|
|
|
|
Edelman Smithfield (Investor Relations) Alex Simmons |
+44 (0)7970 174 252 or alex.simmons@edelmansmithfield.com |
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, rugs, 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 over 5,000 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.
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
- 14 minutes ago Johnson Matthey
- 1 hour ago Galliford Try
- 1 hour ago Galliford Try
- 1 hour ago Centrica
- 2 hours ago Smith & Nephew