Victoria shares fall despite encouraging start to financial year

Victoria PLC on Friday said it has made an "encouraging" start to its financial year despite a challenging market environment, as it continues efficiency and cash generation measures.

However, shares in the Worcester, England-based designer, manufacturer, and distributor of flooring products fell 4.7% to 55.05 pence in London on Friday morning.

Ahead of its annual general meeting, the company said it completed productivity upgrades to its V4 ceramics line in Spain over the summer, increasing production flexibility.

Victoria has also completed transferring all rug-weaving equipment at its Balta business from Belgium to Turkey.

The company expects both projects to increase efficiency and output over the remainder of the year and support stronger performance in financial 2028, broadly in line with expectations. Victoria's current financial year concludes in March.

Victoria also noted UK competitor Headlam Group PLC's recent announcement that it intends to appoint administrators. Victoria said it will assess any opportunities that may arise as a result.

Its UK business continues to perform strongly, it added. While Headlam is a customer for Victoria's manufactured products, Victoria said it currently has no credit exposure to the company.

Elsewhere, Victoria said the industry operating environment remains volatile, with energy, diesel and input prices rising further since its annual results in July. It is taking further action to mitigate the impact.

The company said refinancing of its 2028 bonds and preferred equity continues to make "good progress" and remains on track for completion in the fourth quarter of 2026. Documentation is expected to be finalised and published in mid-September, when Victoria will provide a further trading update.

Executive Chair Geoff Wilding said: "Whilst the market environment continues to be challenging, the group has had an encouraging start to the year as a result of increased focus and management actions."

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