Victoria Plc - comment

Victoria released its H1 results this morning, which were in line with the guidance issued in early November. Revenue, and volumes in particular, remain weak; however, EBITDA for H1 was broadly comparable with the prior year, reflecting the impact of cost-saving measures implemented by management. Guidance suggests that revenue trends should improve in the second half, although FY26 revenue may still be below the prior-year level.

The refinancing completed earlier this year has effectively deferred, rather than resolved, the underlying credit risk, with debt holders continuing to dictate the investment narrative. Management has taken significant costs out of the business, but demand conditions remain subdued. The key outstanding question is whether there has been a structural shift in demand, with lower carpet penetration relative to hard flooring, which could constrain long-term growth prospects.