Half-Year Trading Update

Victoria PLC (LSE: VCP), the international designer, manufacturer and distributor of innovative flooring, provides its usual trading update for the six-month period ended 27 September 2025 ahead of publishing its half-year financial results in December.

Year-to-Date Trading and Outlook

Revenue was in line with previous guidance. Demand across Victoria's markets remained soft, with an improvement in average selling prices partially offsetting a year-on-year decline in volumes. Whilst overall H1 revenue was approximately 7% behind last year, there was an improving trend in the period with a c.11% decline in Q1 followed by a c.2% decline in Q2.

Targeted cost savings across the business more than offset the impact of lower volumes. Underlying EBITDA improved to c.£53m for the half, compared to £50m in the prior year, representing a margin improvement of more than 120bps. Excluding the prior year impact of a favourable gas hedging position, this improvement was approximately 250bps.

The Board continues to expect an improving trend in year-on-year revenue performance in H2, although the Board remains mindful of external risks, including softening US consumer confidence, political developments in France, ongoing weakness in the USD and AUD, and uncertainty surrounding the forthcoming UK budget. As a result, revenue for FY26 is expected to be slightly below FY25. However, the actions already taken this year are expected to drive margins and underlying EBITDA ahead of last year. Further cost savings through the balance of the year and into FY27 will also be targeted.

Management's immediate focus remains on delivering self-help initiatives outlined at the recent full year results (which, when completed, are expected to deliver £70m annual EBITDA improvements vs FY25), generating cash to deleverage, and rebuilding the Company's credit rating.

Progress on self-help initiatives

The Board confirms that all self-help initiatives required to deliver the targeted £20m savings in FY26 have now been completed. Additional savings have been delivered ahead of guidance and will support further margin improvement over the remainder of the financial year.

Key self-help initiatives targeted to drive improvement in underlying EBITDA in FY27 and FY28 have also progressed in line with expectations. In particular, the development of the V4 Ceramics line in Spain remains on track to begin trial production this month, and negotiations with the unions regarding the relocation of rug production from Belgium to Turkey have successfully concluded in line with our expectations, with related headcount reductions and equipment transfers now underway. Further detail on progress on these initiatives will be provided with the half-year results.

Management continue to review various cashflow optimisation initiatives, and updated capex and working capital guidance will be provided as part of the half-year results. Management is also identifying surplus properties for disposal, which will supplement liquidity as transactions complete.

Capital structure

In the period, the Company successfully refinanced its 2026 debt maturities. This released additional liquidity, extended the Group's maturity profile, and strengthened the Company's long-term capital structure. Whilst the Company no longer has any short-term maturities, to further improve the Company's capital structure, the Board continues to progress refinancing plans for the benefit of all stakeholders including to address its 2028 senior secured notes.

Cash at the period end was £86m, and Group liquidity remains sufficient, with approximately £100m of further undrawn debt capacity permissible under the Group's bond documentation.

The person responsible for arranging the release of this announcement

on behalf of the Company is Alec Pratt, Chief Financial Officer.