Victoria PLC (AIM:VCP) shares fell 6.1% to 67.6p after the flooring group reported lower annual revenue and earnings, a wider statutory loss and increased debt.
Underlying revenue declined 6.3% to £1.05 billion in the year to 28 March as volumes fell 9% amid weak demand, particularly during the second half.
Underlying EBITDA dropped 18.8% to £92.3 million, with the margin narrowing to 8.8% from 10.2%. The statutory net loss widened 18.3% to £326.3 million, reflecting asset impairments, refinancing expenses, restructuring costs and charges linked to preferred equity.
Net debt, including lease liabilities, rose 18.4% to £1.06 billion, pushing the net debt-to-EBITDA ratio to 11.5 times from 7.9 times.
Victoria said trading improved during the first quarter of the new financial year, with volumes rising around 3% and revenue increasing around 7%. Profitability was also ahead of the previous year despite higher input costs linked to the Iran conflict.
The group expects to generate at least £115 million of EBITDA for the full year.
A proposed refinancing is expected to extend debt maturities from 2028 to 2031, reduce balance sheet liabilities by around £300 million and cut annual financing costs by approximately £34 million.
Victoria is also targeting around £70 million from property disposals as it looks to reduce leverage.
