Victoria (VCP) H2 2025 earnings summary

Executive summary

• FY 2025 saw subdued demand, with revenue just over £1.1 billion, in line with guidance, and a focus on cost savings to offset market weakness.

• Demand remained 15–25% below 2019 levels across geographies, but £32 million in cost savings were delivered, with an additional £70 million targeted over the next 18 months.

• H2 EBITDA rose over 25% versus H1 on flat revenues, with Q4 being the strongest period of the year.

• Successful refinancing of 2026 bonds with new 2029 notes removed near-term refinancing risk, increased liquidity, and secured over 90% noteholder support.

• Board confident in medium-term recovery as market conditions show tentative stabilization, especially in the UK and southern Europe.

Financial highlights

• Revenue for FY 2025 was £1,115.2 million, down from £1,226.4 million year-over-year.

• EBITDA for FY 2025 was £113.7 million; net debt increased by £57.9 million to £897.9 million.

• Pre-tax loss for the year was £11.5 million, compared to a £31.1 million profit in the prior year.

• Cash exceptional items were under £17 million; non-cash impairment charges totaled £186 million, mainly in Belgian rugs, Spanish ceramics, and US distribution.

• Net free cash flow per share dropped to £0.40 from £0.95 year-over-year.

Outlook and guidance

• Market conditions remain at trough levels but show tentative signs of stabilization, especially in the UK and southern Europe.

• FY 2026 expected to benefit from £20 million in cost savings, with a further £50 million by end of FY 2027.

• Management expects a return to mid-teens EBITDA margin post-savings, before any cyclical or volume recovery.

• H2 FY 2026 margins expected to improve as cost savings flow through.

• Q1 volumes remain behind FY 2025, but average selling prices are higher and trends are improving.