Victoria PLC (AIM:VCP) said operational improvement measures are progressing as planned, with efficiency upgrades completed in Spain and Turkey as the flooring group targets stronger performance in the 2028 financial year.
Ahead of its annual general meeting, the company said productivity upgrades to its V4 ceramics line in Spain were completed during the summer, improving production flexibility.
Victoria has also completed the transfer of all Balta rug-weaving equipment from Belgium to Turkey, with both initiatives expected to increase efficiency and output over the remainder of the year.
The company also noted Headlam Group's (LSE:HEAD) recent announcement of its intention to appoint administrators and said it would assess any opportunities that may arise.
Victoria's UK business continues to perform strongly and added that, while Headlam is a customer for some manufactured products, it currently has no credit exposure to the company.
Across its other markets, the company's industry conditions remain volatile, with energy, diesel and other input costs rising further since its full-year results on July 24. Further measures are being taken to mitigate the impact.
Progress is also continuing on the refinancing of Victoria’s 2028 bonds and preferred equity, which remains on track for completion in the fourth quarter of calendar 2026.
Documentation is expected to be finalised and posted in mid-September, when the company will also provide an update on current trading.
Executive chairman Geoff Wilding said: “Whilst the market environment continues to be challenging, the Group has had an encouraging start to the year as a result of increased focus and management actions.”
