Earnings release
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RNS Number : 9939TVictoria PLC23 February 2026 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"), andis 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, providesa 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 shipmentvolumes as the Rugs business transitions manufacturing from Belgium to Turkey accounted for over half of therevenue 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 declinedapproximately 1.5% in Q3. Trading in the first half of January, however, was significantly impacted by weak consumer confidence and weakfootfall at our end customers due to geopolitical events across our key markets: western Europe; North Americaand the UK. Whilst recent weeks have shown improvements in trading, the board now expects Q4 revenue to bebelow 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 andimproved 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 withexpectations, albeit shipping disruptions have been greater than anticipated. The first stages of integrating our UK Underlay businesses and Australian businesses announced at the HYresults 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 EBITDAimprovement initiatives remain on track, and further EBITDA improvements have been identified across thedivisions 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 driveefficiency improvements ahead of both domestic and international competition within its local markets. Increased rigor in tracking these improvements is being implemented along with broader governanceimprovements, 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 capitalproviders to progress refinancing plans for the benefit of all stakeholders including to address its 2028 seniorsecured notes. The cash initiatives outlined at the half year results are advancing. Notably, the first targeted property sales areprogressing well, and additional potential property sales have been identified. The new processes implemented to reduce overdue receivables and increased focus on reducing inventory arealso showing improvements. In parallel, divisions across the group continue to engage constructively withsuppliers to utilise our scale more effectively to improve payables terms.
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* The Company considers that market expectations prior to the release of this announcement for FY26 to havebeen revenue of £1064m and post-IFRS16 EBITDA of £110.7m The person responsible for arranging the release of this announcementon behalf of the Company is Alec Pratt, Chief Financial Officer. For more information contact: Victoria PLCGeoff Wilding, Executive ChairmanPhilippe Hamers, Group Chief ExecutiveAlec Pratt, Chief Financial Officer www.victoriaplc.com/investors-welcomeVia Edelman Smithfield PR Singer Capital Markets (Nominated Adviser & JointBroker)Rick Thompson, Phil Davies, James Fischer, SamedEthemi +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 oralex.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 internationalmanufacturer and distributor of innovative flooring products. The Company, which is headquartered inWorcester, 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, andAustralia and employs over 5,000 people across more than 30 sites. Victoria is Europe's largest carpetmanufacturer and the second largest in Australia, as well as the largest manufacturer of underlay in bothregions. The Company's strategy is designed to create value for its shareholders and is focused on consistentlyincreasing earnings and cash flow per share via acquisitions and sustainable organic growth. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authorityto act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this informationmay apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the informationcontained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. Forfurther information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END