Victoria reiterates FY revenue guidance, assesses US tariff impact
By Iain Gilbert
Date: Tuesday 06 May 2025
(Sharecast News) - Floorings group Victoria reiterated FY25 revenue guidance on Tuesday as it said "self help" initiatives remained a "key focus" for the group in FY26.
Victoria confirmed that FY25 revenue will be at least £1.11bn, and that post-IFRS 16 underlying earnings margins would be broadly in line with market expectations.
At a group level, Victoria said Q4 FY25 had "shown sequentially improving EBITDA margins", reflecting "self-help" initiatives implemented across the business, and noted that it was expected to be "the most profitable quarter of the year", and "significantly ahead" of the equivalent period of FY24.
Notably, since January, the AIM-listed group stated that its UK businesses had experienced "successive monthly improvements" in year-on-year like-for-like revenue growth and were benefitting from increasing profitability.
Victoria also noted that it was continuing to assess the impact of any potential US tariff changes, noting that approximately 80% of its activities were in non-US markets, so any direct impact was "limited to a small proportion" of the group.
"Whilst the potential tariff impact remains dynamic, the board notes that the US flooring industry does not possess the domestic production capacity to meet demand currently, so imports will continue to be a key feature of the sector for the medium term. Furthermore, many of our competitors are based in countries expected to attract higher tariffs than Victoria's businesses, potentially improving our relative competitiveness," said Victoria.
"However, the board believes it is prudent to adopt a more cautious outlook until the impact of the recent tariff announcements - particularly the secondary effects on consumer sentiment and competitor reaction - can be more fully determined."
As of 1020 BST, Victoria shares were up 0.25% at 81.40p.
Reporting by Iain Gilbert at Sharecast.com
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