International flooring group Victoria PLC has reported encouraging growth as well as securing a new refinancing agreement.
According to its latest trading update, the group said trading since the start of the year has been “encouraging, with year-on-year like-for-like revenue growth”.
This has been driven by the execution of management’s performance initiatives and ongoing market share gains in the UK and Australia.
“Across the business, management reacted quickly to the disruption caused by the Iran conflict, executing targeted price rises to protect margins and effectively managing the supply chain to mitigate negative impacts,” the group added.
“FY26 EBITDA performance was broadly in line with guidance notwithstanding the Iran conflict.”
Furthermore, Victoria PLC has entered into a binding transaction support agreement with KED Victoria Holdings, LLC and Wood River Capital, LLC and holders representing approximately 2/3rds of its outstanding €166.6 million 3.75% senior secured notes due March 2028.
“The Company has secured the support of Koch and the Consenting 2028 SSNs Noteholders on the terms of a refinancing of the 2028 SSNs and KED Victoria’s holding of Preferred Shares to significantly strengthen the financial position of Victoria,” the group said.
The Refinancing Transaction represents an important milestone for Victoria and its stakeholders. Specifically, it will:
· Reduce senior secured debt and Preferred Shares liabilities by at least £300 million with the benefit accruing to ordinary equity holders and significantly deleveraging the Company
· Eliminate near-term equity dilution risk from KED Victoria’s Preferred Shares
· Cut annual finance costs including the Preferred Shares PIK dividend by approximately £34 million
· Extend debt maturities through the issue of new 2031 notes
· Trading since the start of the year has been encouraging, with year-on-year revenue growth
Geoff Wilding, Executive Chairman, said: “This Refinancing Transaction is a significant step forward for Victoria and, in particular, for ordinary shareholders. Together with the successful extension of our 2026 note maturities last year, it materially improves Victoria’s financial position and provides runway for our ongoing operational recovery.
“The Refinancing Transaction reduces the senior secured debt and Preferred Shares liabilities by more than £300 million, eliminates the near-term Preferred Shares conversion right, reduces the dilutive effect of the conversion right and importantly implies an issuance price for the newly issued shares at a premium of more than 400% to the current share price. The value of this reduction will directly benefit our ordinary equity holders, being equivalent to multiples of our current market capitalisation. In our view this is a clear demonstration of both Koch’s and noteholders’ confidence in Victoria’s future value creation potential.”
Alec Pratt, CFO, commented: “We are pleased with the strong support and collaboration received from Koch, Consenting 2028 SSNs Noteholders and major shareholders. The Refinancing strengthens our balance sheet and cuts ongoing cash interest and annual finance costs including PIK dividends by approximately £34 million while extending our maturities and giving Victoria greater financial flexibility and additional runway to execute on its profit improvement initiatives.”
Joe Scribbins, Managing Director – Koch Equity Development LLC, KED Victoria’s parent company, stated: “We believe in Victoria’s ability to execute on its profitability improvement plan and are looking forward to supporting the effort.”
