Victoria (AIM:VCP) on Monday told investors that organic revenue grew approximately 5% for the six months to 30 September, or around 7% excluding its Balta rugs business, as the flooring manufacturer continues to take market share in the UK, North America and Australia.
The London-listed group said EBITDA for the half, excluding Balta, is expected to run slightly ahead of the first half of the prior year and 45% ahead of the second half of last year, though Balta's divisional EBITDA fell £3.8m behind the prior year as the temporary disruption from relocating production to Turkey weighed on profitability.
That Turkey transition is now complete, with manufacturing volumes rising in line with the planned ramp-up and supported by €34m of backorders; Victoria expects to hit target volumes in the fourth quarter, delivering the full run-rate benefit before the start of FY28.
The relocation follows a €34.4m sale-and-leaseback of Balta's Belgian distribution centre completed in July, proceeds from which, together with further property disposals, were intended to cover the exceptional costs and capital expenditure of the Turkish move.
Rising oil and gas-related input costs are being offset by pricing and cost-saving measures, though the board flagged the potential hit to margins should higher input prices persist; it said further guidance will come 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," said Geoff Wilding, Executive Chairman, adding that rising energy and raw material costs are "masking much of the improvement" but that he remains confident in the company's direction.
Read more about Victoria
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- 14/07/26Victoria completes €34.4m Belgium sale and leaseback
Victoria reiterated its target of £70m in net proceeds from surplus and non-core asset sales in FY27, with approximately £26m achieved to date.
The company separately confirmed it has launched a Consent Solicitation as part of its previously announced refinancing, with more than 90% of senior secured noteholders already backing the transaction, enough to clear the approval threshold required; the deal remains on track to close around 10 December.