Victoria PLC Shares Slip After Cautious AGM Update Flags Rising Costs

Shares in Victoria PLC (LON: VCP), the flooring designer, manufacturer and distributor, fell on Friday, September 4, after the group issued a trading update ahead of its Annual General Meeting.

The stock closed at 66.2p, down roughly 2.2% from Thursday’s close of 67.7p, having earlier touched an intraday low of 64p, extending a decline from around 73p seen just over a week ago.

In the AGM statement, Victoria said its Board remains focused on EBITDA improvement and cash-generating initiatives, highlighting completed productivity upgrades to its V4 ceramics line in Spain and the relocation of Balta’s rug-weaving equipment from Belgium to Turkey, both expected to lift output and efficiency through the rest of the year and support stronger performance in FY28.

The company also addressed the recent news that UK rival Headlam Group plans to appoint administrators, saying it would assess any resulting opportunities. Victoria noted its UK business continues to perform strongly and that it has no credit exposure to Headlam, despite the latter being a customer for some manufactured products.

However, investor sentiment appeared weighed down by Victoria’s warning that energy, diesel and input costs have risen further since its full-year results on July 24, prompting additional mitigation measures, alongside a broader description of the operating environment as “volatile.”

Refinancing of the group’s 2028 bonds and preferred equity is said to be progressing well and remains on track for completion in Q4, with documentation expected mid-September, when a further trading update will follow.

Executive Chairman Geoff Wilding struck a balanced tone, calling the start to the year “encouraging” despite a “challenging” market backdrop, though the renewed cost pressures appear to have unsettled the market on the day.