Victoria PLC expects full-year earnings to be in line with market expectations
Worcestershire-headquartered flooring firm Victoria PLC told investors it expected its full-year 2025 earnings to be in line with market expectations.
The company, updating on trading for the year to end-March, 2025, said that while demand remained subdued, it continued to expect trading in the second half to pick up.
Notably, the board said £12 million had been permanently removed from the firm's fixed cost base during the first half, with a further £20 m a year of savings being executed during FY2025.
"The board remains confident that as demand normalises, Victoria's revenues will recover in the medium term, accompanied by a sharp increase in earnings," the company said in a statement.
"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."
The firm said it expected that the positive impact on FY2026 earnings will be around £32m in total while the cumulative cost savings targeted by the end of FY2027 was expected to be in excess of £80m.
Also in the statement, Victoria announced the appointment of Joe Scribbins, 41, 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.
Scribbins joined KED in 2011 and is currently a managing director of KED. He founded and leads KED's commercial excellence team.
Scribbins noted: "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."
The company designs, manufactures and distributes a range of carpet, flooring underlay, ceramic tiles, LVT (luxury vinyl tile), artificial grass and flooring accessories.
It has operations in the UK, Spain, Italy, Belgium, the Netherlands, Germany, Turkey, the USA, and Australia and employs around 6,300.
