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Highlights

  • FY2025 revenue forecast to reach at least £1.11 billion with EBITDA margins in line with expectations.

  • Q4 FY2025 to be the most profitable quarter, driven by internal efficiency measures.

  • Cautious FY2026 outlook amid potential US tariff changes and their market impact.

Victoria PLC (LSE:VCP), a leading global designer, manufacturer, and distributor of innovative flooring solutions, has issued a trading update for the financial year ending 29 March 2025 (FY2025), projecting robust revenue of at least £1.11 billion and EBITDA margins broadly aligned with market expectations.

The company reported a positive finish to the year, with Q4 FY2025 expected to be the most profitable quarter, significantly outperforming the same period in FY2024. This surge in profitability is attributed to the company’s ongoing “self-help” initiatives, which include internal efficiency improvements, operational restructuring, and cost-saving measures. These initiatives have been instrumental in sequentially improving EBITDA margins across the Group.

Victoria’s UK operations, in particular, have shown consistent monthly year-on-year like-for-like (LFL) revenue improvements since January, reflecting increased profitability and resilience in domestic markets. The progress in the UK is seen as a promising indicator for continued momentum as the Group enters FY2026.

Looking ahead, these internal reforms will remain central to the company’s strategy, with the Board reaffirming its commitment to implementing productivity gains and operational enhancements throughout FY2026. Additionally, a more favourable interest rate environment is expected to support earnings growth over the coming year.

However, the company also struck a note of caution, especially concerning potential changes to US tariffs. While approximately 80% of Victoria’s business is conducted outside the United States, and thus largely insulated from direct tariff impact, the Board is monitoring potential secondary effects closely. These could include shifts in consumer behaviour and competitive dynamics in the global flooring market.

Despite this uncertainty, the company noted a potential competitive advantage, stating that many of its rivals are based in countries more likely to face higher tariffs. Moreover, the US market's reliance on imported flooring, due to limited domestic production capacity, means that imports—including Victoria’s offerings—are likely to remain essential for meeting demand in the medium term.