Victoria (LSE:VCP), the international flooring manufacturer, said organic revenue grew approximately 4% year-to-date to the end of August, its first return to organic growth since 2022.
Excluding the Rugs division, where output has been temporarily constrained by a production relocation to Turkey, organic growth would have been approximately 6%.
Earnings (EBITDA) to the end of August, excluding Rugs' transitory losses, ran ahead of the prior year, though the Board flagged continued pressure from Middle East-driven input costs including oil derivatives, gas and freight.
The company targets £70 million in net proceeds from property and non-core asset sales in the 2027 financial year, of which approximately £26 million has already completed.
Alongside trading, Victoria confirmed progress on its refinancing of €166.6 million in senior secured notes due March 2028 and the preferred shares held by KED Victoria Holdings, an affiliate of Koch Equity Development.
Senior Secured Noteholders representing over 90% of outstanding notes have now backed the plan, alongside KED Victoria and irrevocable commitments from 30.4% of shareholders.
The refinancing will cut senior secured debt and preferred equity liabilities by at least £300 million, reduce annual finance costs by approximately £34 million, extend maturities via new notes due 2031, and remove near-term equity dilution risk tied to KED Victoria's preferred shares.
"The Board believes the Refinancing Transaction will significantly strengthen the financial position of the Company and deliver a favourable outcome for stakeholders and substantial value for Shareholders."
Shareholders will vote on the resolutions at a General Meeting on 5 October, with completion targeted for 10 December.
News Intelligence what this means for the company
Victoria has cleared a critical refinancing hurdle, securing over 90% noteholder backing to restructure €166.6 million in 2028 debt and preferred equity, cutting liabilities by at least £300 million and annual finance costs by £34 million while extending maturities to 2031. The company simultaneously reported its first organic revenue growth since 2022—approximately 4% year-to-date to end of August, or 6% excluding the Rugs division's temporary production relocation—signalling a return to underlying demand after two years of contraction. Together, these developments remove near-term refinancing risk and equity dilution from KED Victoria's preferred shares, while the trading momentum suggests the operational turnaround is taking hold.
The refinancing materially de-risks Victoria's balance sheet and removes a key overhang; the company now faces a shareholder vote on 5 October and completion targeted for 10 December. Organic growth's return is encouraging, though EBITDA remains pressured by Middle East-driven input costs (oil derivatives, gas, freight), and the Rugs division's relocation to Turkey is still in progress, so near-term earnings visibility remains constrained until that transition completes.
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