Victoria expects to continue to take market share in the UK and Australia in the face of weaker competitors as it saw Q1 growth.
‘Q1 FY2027 demonstrated growth in volumes, up c3%, and revenue, up c7%, with profitability ahead of Q1 FY2026 despite price and cost volatility caused by the Iran conflict. Market share gains in the UK and Australia are expected to continue due to competitors struggling/withdrawing, and new client wins in the US are expected to benefit the balance of the year,’ it says.
‘The board remains conscious of macroeconomic factors outside of its control and therefore we currently expect to deliver at least £115m EBITDA in FY2027. This guidance reflects top line growth from market
share gains, expected temporary margin dilution due to higher input prices from the Iran conflict, and lower starting volumes delaying the full benefit of certain EBITDA improvement initiatives in FY2027.
‘Reducing leverage is a board priority through improved earnings and via the sale of surplus and
non-core assets and applying free cash flow towards the debt. Net proceeds of approximately £70m are expected from property assets identified for sale and
will be executed through the balance of FY2027 and FY2028.’
The update came as the year ended 28 March saw underlying sales of £1.0455bn, down from £1.1152bn. The group says it ‘demonstrated pricing resilience, with underlying revenue declining 6% despite a 9% reduction in volume with a markedly softer second-half trading environment.
‘Ongoing operational improvements and improved average selling prices mitigated the impact of lower volumes, resulting in a EBITDA margin of 8.8% (10.2%).
‘The group recognised a statutory reported operating loss of £153.3m and statutory net loss after tax of £326.3m in the period, which were primarily driven by exceptional costs relating to: non-cash cost from the impairment of intangible and tangible assets; one-off costs relating to the refinancing of the group’s senior debt; the provision taken in respect of the Rugs reorganisation; and finance costs related to preferred equity.’
‘UK & Europe Soft Flooring secured market share gains and operational improvements in the UK business, which were temporarily masked by the impact of the reorganisation of the European rugs business. This reorganisation is now well advanced, with completion expected in Q3 FY2027.
‘UK & Europe Ceramic Tiles had a challenging year with revenue and margins under pressure due to weak market conditions. In Italy, production has been consolidated with one site exited in March 2026 which will generate savings throughout FY2027, and in Spain, the new, more efficient V4 production line became operational at the end of Q3.
‘Australia delivered year on year growth in revenue and EBITDA, supported by market share gains, tight cost discipline and the launch of a new value brand, Wonderlay. Closer collaboration between our three Australian business units has also commenced with a new holding structure implemented.
‘North America performance was impacted by tough trading continuing from FY2025. Repositioning the
CALI business model from B2C to B2B during FY2026 alongside other self-help initiatives launched at the
start of FY2027 position the division for improved performance.’
