Victoria plc reports annual results in line with market expectations

LONDON - Victoria PLC (AIM:VCP), the international designer and manufacturer of flooring products, reported annual results for the year ended March 29, 2025, with revenue and earnings in line with market expectations despite challenging market conditions.

The company reported underlying revenue of £1,115.2 million, down 9% from £1,226.4 million in the previous year, while underlying EBITDA fell to £113.7 million from £159.0 million. Underlying operating profit declined to £29.5 million from £73.0 million.

Performance was impacted by lower volumes across most markets, with demand approximately 15-25% below 2019 levels in different regions. However, management implemented significant cost-saving initiatives throughout the year, with £32 million in savings already delivered or on track, and a further £50 million targeted with full run-rate to be achieved by the end of fiscal year 2027.

The company also announced a refinancing of its Super Senior Revolving Credit Facility and an exchange transaction for its 2026 Senior Secured Notes, extending the maturity to 2029. The refinancing, which has binding support from more than 90% of the 2026 noteholders, is expected to address the 2026 maturities in full.

Notably, EBITDA margin performance improved significantly in the second half of the year (H2:11.6%) compared to the first half (H1:8.8%), with Q4 showing the strongest margin performance since Q1 2024.

"After nearly three years of intense macroeconomic headwinds there are tentative signs that the trading environment has stabilised," said Geoff Wilding, Executive Chairman. "Our near-term priority is to continue executing internal self-help initiatives that drive margin improvements, earnings and enhance cash generation."

The company reported that market conditions remain at trough levels, although there are signs of stabilization, particularly in the UK and Southern Europe. The board expects revenue to return to a more typical H2 weighted seasonality after successive years of a contracting market.

Based on a press release statement, Victoria PLC maintains a strong liquidity position with total cash and undrawn credit facilities exceeding £150 million.

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