Victoria PLC (AIM:VCP) shares rose 7% to 44p in early trading on Tuesday, extending gains to almost 70% over the past week, after the flooring group announced a €34.4 million sale and leaseback of a Belgian distribution centre.
The flooring products designer and manufacturer said the deal will unlock cash while retaining operational use of the site as a key European hub.
Proceeds from the disposal, agreed with Avantage Property Holding, will be used alongside other asset sales to fund costs linked to relocating rug manufacturing to Turkey.
That follows a trading update in February when Victoria warned that full-year revenue would fall short of expectations after weak consumer confidence hit demand. Third-quarter revenue fell about 3%, an improvement on the roughly 7% decline in the first half.
The latest move forms part of a broader restructuring aimed at improving efficiency and cash generation.
Executive chairman Geoff Wilding said: "This agreement secures continued use of an important site while unlocking capital to mitigate the costs associated with expanding production capacity at Balta's Turkish plant and relocating the majority of its rug manufacturing to that site.
"This major project is expected to be completed and begin providing benefits during the current financial year."
Victoria shares fell below 20p earlier this month for the first time since 1999.