Victoria Plc - comment

Victoria is nearing refinancing, with over 92% of 2028 Noteholders now committed and shareholder approval secured. The final court hearing is scheduled for 1 December, with completion still expected around 10 December. The terms remain unchanged, with existing noteholders receiving €750 of new 12% 2031 PIK Notes and 19% of the enlarged equity for every €1,000 of existing principal.

The trading update reiterates the weaker end markets, despite Victoria's market share gain. Organic revenue grew approximately 5% (+7% excluding Balta), while EBITDA excluding Balta is expected to be slightly ahead of H1 last year. Balta has completed its production relocation to Turkey, with €34m of backorders supporting the planned ramp-up. However, rising energy and input costs remain a risk, while liquidity management and the targeted £70m of asset disposals remain key priorities. KED Victoria (Koch) is expected to own 24.9% of the enlarged equity, alongside its £270m CVR and other retained securities.