Victoria PLC (LSE: VCP), the international designer, manufacturer and distributor of innovative flooring, provides a trading update for the six months ended 30 September 2026. Organic revenue grew about 5%, or about 7% excluding Balta, and the company said it kept winning market share in the UK, North America and Australia despite pressured end markets.
Earnings before interest, tax, depreciation and amortisation (EBITDA) excluding Balta is expected to be slightly ahead of the first half of FY26 and 45% ahead of the second half of FY26, despite a challenging cost environment.
Balta, the Group division whose production has moved to Turkey, had a weak half. Its profitability was temporarily but significantly hit, leaving divisional EBITDA £3.8m behind the prior year.
The company says the move is complete and volumes are rising in line with plan, backed by €34 million of backorders, meaning customer orders awaiting fulfilment. Target volumes are expected in the fourth quarter, so the full run-rate benefit lands before FY28 begins.
Offsetting that, oil and gas related input prices have risen rapidly in recent months. Pricing and cost saving initiatives are mitigating the effect, but the Board flagged a potential negative impact if higher prices persist. It will give further guidance with the half-year results.
Operational progress has been strong this year with sales initiatives growing market share, improved factory productivity, and lower overhead costs. It is frustrating that the sharp rise in energy and raw material costs are masking much of the improvement, but we are focussed on securing price increases and additional efficiencies to compensate, and I am confident in the direction of travel.
Geoff Wilding, Executive Chairman, Victoria PLC
Liquidity remains a key focus. Management is targeting £70 million of net proceeds from surplus and non-core asset sales in FY27, and about £26 million has been achieved so far.
Separately this morning, Victoria launched a Consent Solicitation, a formal request to bondholders to approve changes, as part of its previously announced refinancing. More than 90 per cent of Senior Secured Noteholders, who hold bonds backed by company assets, already support it, enough to meet the approval threshold and in line with the timetable. Closing is still expected on or around the 10th of December.