AUS
NZ
UK
CA
USA
IND
Highlights
Underlying EBITDA increased to GBP 53.5 million with margin expansion to 10.1%.
Revenue decline narrowed significantly from Q1 to Q2 during the reporting period.
Exceptional items linked to rugs reorganisation and debt refinancing impacted statutory results.
Victoria PLC (LSE:VCP), the international designer, manufacturer, and distributor of flooring products, has released its half-year results for the six months ended 27 September 2025. The reported figures align with the trading update issued on 6 November, reflecting the company’s financial and operational performance amid varied macroeconomic conditions and softer consumer demand across several key markets.
Revenue Trends and Margin Developments
During the reporting period, Victoria recorded an improving revenue trend as the half progressed. Revenue decline narrowed from approximately 11% in the first quarter to around 2% in the second quarter, supported by improvements in average selling prices.
Despite lower volumes, underlying EBITDA margin expanded by more than 120 basis points to 10.1%. When excluding the impact of the Rugs division, which is undergoing restructuring, and prior-year hedging variances, the underlying margin improvement was approximately 390 basis points.
Underlying EBITDA increased to GBP 53.5 million, compared with GBP 50.2 million in the same period last year.
Statutory Results Impacted by Exceptional Items
For the six-month period, Victoria reported a statutory operating loss of GBP 44.7 million and a statutory net loss after tax of GBP 139.4 million. These results were largely influenced by exceptional costs.
Key contributors included provisions related to the reorganisation of the Rugs business and one-off expenses associated with the refinancing of the Group’s senior debt facilities. These items were disclosed as non-recurring in nature and separate from underlying operating performance.
Regional and Operational Performance Overview
In the UK, the carpets and hard flooring businesses continued to gain market share and performed ahead of the prior year, despite softer trading conditions in the period leading up to the delayed Budget.
Victoria’s Australian operations delivered continued progress, with additional improvements expected as the ongoing integration project contributes to further cost reductions.
Other European markets, particularly France and Germany, remained subdued, affecting ceramics volumes and, to a lesser extent, artificial grass sales. These impacts were partially offset by volume growth in Spain and Portugal. In the United States, softer discretionary spending and delayed construction activity following a government shutdown affected trading performance.
Outlook and Management Focus
Management actions implemented during the year contributed to margin improvements. However, continued lower volumes are expected to result in underlying EBITDA being broadly in line with FY25 levels, excluding one-off costs associated with the Rugs manufacturing transition from Belgium to Turkey.
Victoria PLC continues to target further cost savings through the remainder of the year and into FY27. Management’s immediate priorities include executing EBITDA improvement initiatives expected to deliver GBP 70 million in annual improvements compared with FY25, generating cash to reduce leverage, and rebuilding the company’s credit profile.
