Victoria FY underlying profits seen ahead of consensus

Floor coverings retailer Victoria said on Tuesday that revenues and underlying profits for the financial year ended 2 April were both expected to be ahead of consensus market expectations.

Victoria stated it now expects, subject to finalisation of the accounts and audit, revenues to be in excess of £970.0m, up from £662.3m a year earlier, while underlying EBITDA was pegged to be in excess of £155.0m, ahead of the £127.4m recorded twelve months prior.

Heading into the new financial year, Victoria said demand for its products remained "robust", with consistent demand from consumers driving its retailer channels as it witnesses "a strong resurgence" in commercial demand.

Victoria also added that it had decided to deploy a proportion of excess cash to take advantage of an opportunity to make purchases of its own shares at levels it believes to be "materially below" the intrinsic value of the group.

Chairman Geoff Wilding said: "There are operating challenges every year and FY2023 will be no different.

"However, we have invested carefully over the last nine years and Victoria is in a strong position to meet those challenges and capitalise upon them. As a result, the Board expects EBITDA to be in excess of £200.0m over the coming year."

As of 0840 BST, Victoria shares were up 2.34% at 786.0p.