Last checked at 5 Oct 2023 07:00
Victoria PLC
('Victoria' or the 'Company')
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Group credit rating affirmed
Deleveraging anticipated
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Victoria PLC (LSE: VCP), the international designers, manufacturers and distributors of innovative flooring, advised that international credit rating agency Fitch Ratings yesterday affirmed the Company's credit rating following a recent review that stated:
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"Fitch Ratings has affirmed Victoria PLC's Long-Term Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. Fitch has also affirmed Victoria's senior secured notes at 'BB+' with a Recovery Rating of 'RR2'.
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The rating balances Victoria's high leverage with the group's good diversification and strong market position. Victoria's exposure towards higher-end customers supports its ability to pass on incremental costs without a major impact on their volumes in a recessionary environment.
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The Stable Outlook reflects the group's strong ability to integrate its new acquisitions, resulting in incremental EBITDA across the rating horizon to 2026. Despite a delay in deleveraging compared with Fitch's expectations, strong working-capital management and limited growth capex are likely to result in positive free cash flow (FCF) generation to promote deleveraging from 2025."
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The full rating can be viewed using this link: https://www.fitchratings.com/research/corporate-finance/fitch-affirms-victoria-plc-at-bb-outlook-stable-04-10-2023
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For more information contact:
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Victoria PLC Geoff Wilding, Executive Chairman Philippe Hamers, Group Chief Executive Brian Morgan, Chief Financial Officer  | www.victoriaplc.com/investors-welcome Via Walbrook PR | ||
Singer Capital Markets (Nominated Adviser and Joint Broker) Rick Thompson, Phil Davies, James Fischer  | +44 (0)20 7496 3095  | ||
Berenberg (Joint Broker) Ben Wright, Richard Bootle  | +44 (0)20 3207 7800    | ||
Peel Hunt (Joint Broker) Adrian Trimmings, Andrew Clark  | +44 (0)20 7418 8900  | ||
Walbrook PR (Media & Investor Relations) Paul McManus, Louis Ashe-Jepson, Alice Woodings | +44 (0)20 7933 8780 or victoria@walbrookpr.com +44 (0)7980 541 893 / +44 (0)7747 515 393 / +44 (0)7407 804 654 | ||
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About Victoria PLC (www.victoriaplc.com)
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Established in 1895 and listed since 1963 and on AIM since 2013 (VCP.L), Victoria PLC, is an international manufacturer and distributor of innovative flooring products. The Company, which is headquartered in Worcester, UK, designs, manufactures and distributes a range of carpet, flooring underlay, ceramic tiles, LVT (luxury vinyl tile), artificial grass and flooring accessories.
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Victoria has operations in the UK, Spain, Italy, Belgium, the Netherlands, Germany, Turkey, the USA, and Australia and employs approximately 7,300 people across more than 30 sites. Victoria is Europe's largest carpet manufacturer and the second largest in Australia, as well as the largest manufacturer of underlay in both regions.
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The Company's strategy is designed to create value for its shareholders and is focused on consistently increasing earnings and cash flow per share via acquisitions and sustainable organic growth.