Flooring group Victoria PLC has reported continued subdued demand but expects sales to recover as consumer demand normalises.
According to its latest trading update for the year ending 30 March 2025, the group said: “While consumer demand remains subdued, we continue to expect H2 trading to be stronger driven by management actions alongside a small improvement in demand, with full-year FY2025 earnings expected to be in line with consensus market expectations.
“We are encouraged by the progress of the company’s initiatives to improve productivity and take market share, which continue to positively impact profitability. With £12 million permanently removed from our fixed cost base during first half of the year, a further £20 million per annum of savings is being executed during FY2025.
“Consequently, it is expected that the positive impact on FY2026 earnings will be circa £32 million in total and the cumulative cost savings targeted by the end of FY2027 is expected to be in excess of £80 million.
“The Board remains confident that as demand normalises, Victoria’s revenues will recover in the medium term (expectations for the FY2025 range between sales of £1,1447m to £1,180m), accompanied by a sharp increase in earnings. Due to the higher operational leverage now inherent in the business, mid-high teen EBITDA margins are achievable.
“Furthermore, the anticipated benefit of the ‘self-help’ initiatives described above and other projects, together with the recently observed uptick in housing transactions – which is known to correlate with future flooring demand – now underpins the Board’s view of improved financial performance in the forthcoming two years.”
Victoria has also announced the appointment of Joe Scribbins to the Board as a Non-Executive Director of Victoria PLC, following the resignation of Blake Ressel, who is leaving Koch Equity Development LLC (KED) to pursue another career opportunity.
Joe, who holds an MBA from Massachusetts Institute of Technology Sloan School of Management, joined KED in 2011 and is currently a Managing Director of KED. Joe founded and leads KED’s Commercial Excellence team. KED indirectly holds a 10.96% shareholding in Victoria PLC. via an affiliate, Wood River LLC.
Geoff Wilding, Executive Chairman of Victoria PLC, said: “Firstly, I would like to thank Blake for his contribution and support over the last four years, which have not always been easy, and wish him well with his future career.
“I am delighted to welcome Joe to the Board of Victoria. His operational expertise and experience as the Managing Director of the Commercial Excellence team at KED will be invaluable as Victoria executes on several projects to maximise earnings and cash flow.”
Joe commented: “I am very much looking forward to joining the Board. My team and I have invested considerable time with Victoria’s operational management over the last quarter and I am confident there is significant internal opportunity to optimise earnings over the next 12 months.
“Notwithstanding the current soft demand environment, Victoria is a solid business with a leading position in many of its markets, and we look forward to continuing to provide support for the Company’s optimisation efforts.”
