23rd Feb 2026 10:02
(Alliance News) - Victoria PLC on Monday said it expects annual profit below guidance, with January sales hit by "weak consumer confidence".
The Worcester, England-based designer, manufacturer and distributor of flooring products sees GBP95 million in post-IFRS16 earnings before interest, tax, depreciation and amortisation for financial 2026, which ends late March.
This is down roughly 16% on-year from GBP113.7 million, and misses company-complied consensus of EUR110.7 million.
Victoria's sales slowed in the first half of January, with the company citing lower footfall "due to geopolitical events" in its key markets, which include the UK, western Europe and North America.
More positively, the rate of decline slowed to about 3% in the third quarter from a 6% decline in the first half.
Victoria attributed about half of the third-quarter decline to the relocation of Rugs manufacturing to Turkey from Belgium, which has suffered more disruptions than expected.
"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," the company said.
Though trading has picked up since January, Victoria sees fourth-quarter revenue below expectations, and approximately 5% lower on-year. Previously, its financial 2026 revenue target had stood at GBP1.06 billion, down from GBP1.12 billion in financial 2025.
The company said the Rugs relocation continues in line with expectations, and aims to complete the first stages of integrating its UK Underlay division with Australian operations before the end of March. Victoria also noted the first deliveries of its new V4 ceramics line in Spain in the fourth quarter, which is expected to "drive growth" in its Spanish business up to and beyond financial 2027.
"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 company noted.
"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."
According to Victoria, "cash intiatives" are in progress, including a series of property sales, while negotiations with suppliers and financiers remain ongoing.
Victoria shares fell 11% to 23.25 pence on Monday morning in London.
By Holly Munks, Alliance News reporter
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