Victoria (VCP) Trading Update summary

Trading performance and outlook

• Q3 revenue declined about 3% year-on-year, improving from a 7% decline in H1.

• Rugs business transition from Belgium to Turkey caused over half of Q3's revenue decline.

• Excluding Rugs, Q3 revenue was down approximately 1.5% year-on-year.

• January trading was significantly impacted by weak consumer confidence and geopolitical events.

• Q4 revenue is now expected to be about 5% below FY25, with FY26 post-IFRS16 EBITDA forecast at £95m.

EBITDA improvement initiatives

• First sales from the new V4 ceramics line in Spain are being delivered in Q4, expected to boost future EBITDA.

• Rugs manufacturing relocation is progressing, though shipping disruptions have been higher than anticipated.

• Integration of UK Underlay and Australian businesses is on track for completion by March.

• Additional EBITDA improvements have been identified and will be quantified in the ongoing budget process.

• Enhanced tracking and governance of improvement initiatives are being implemented.

Capital structure and cash management

• Focus remains on strengthening capital structure and progressing refinancing plans, including 2028 senior secured notes.

• Property sales and other cash initiatives are advancing, with new potential sales identified.

• Processes to reduce overdue receivables and inventory are showing improvements.

• Supplier engagement is ongoing to improve payables terms using group scale.