Shares in Victoria PLC (AIM:VCP) dropped 17.8% to 30.81p after the flooring company reported lower sales and rising debt in its half-year results.
Net debt rose to just over £1 billion, from £857.1 million, with executive chairman Geoff Wilding saying the boiard has been "working on dual tracks: addressing the Group balance sheet and executing internal initiatives to improve earnings.
"The refinancing process has been more extended than originally expected and reflects both the complexity of the capital structure and the point of the cycle.
"Refinancing the 2028 bonds remains a key objective for the business, and management continue to engage with all its capital providers to provide a solution that is advantageous to the company/all stakeholders."
Revenue from continuing operations fell to £528.7 million in the six months to 27 September 2025, down from £568.8 million a year earlier. The group's statutory loss after tax was slightly smaller at £139.4 million, down from £141.7 million.
Looking for positives, underlying EBITDA increased to £53.5 million from £50.2 million, with Wilding citing margin improvements and ongoing cost-saving initiatives.
"And in the medium term, as demand normalises, we are confident Victoria's revenue will grow and with the higher operational leverage now inherent in the business due to our initiatives we anticipate earnings increasing sharply with a clear path to mid-to-high teen EBITDA margins."
Weak volumes persist across several markets, particularly in France, Germany and the US. The rugs division is being restructured, with production moving from Belgium to Turkey.
Management expects full-year EBITDA to be broadly in line with FY25, excluding one-off costs. Further cost savings are being targeted into FY27.