Benjamin Chiou Sharecast News
15 Nov, 2024 09:00

Victoria expects demand to pick up in second half

dl victoria plc aim flooring floor covering designer manufacturer distributor logo
VictoriaSharecast graphic / Josh White

Victoria

56.00p

11:29 15/11/24
-2.78%
-1.60p

Flooring manufacturer Victoria said it expects full-year results to be in line with market forecasts, predicting a pick-up in momentum in the second half.

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The company said on Friday that demand is returning to the flooring market, "albeit off a very low base of 20-25% below 2019 levels due to broad macro-economic factors".

Shares in Victoria have slumped by around 80% so far this year amid falling sales after a big drop-off in demand following the pandemic, when the home-improvement and repair/replacement/improvement (RMI) market surged. Elevated interest rates and the cost-of-living crisis have prompted consumers to spend less on discretionary items such as flooring, the company said in its annual results this summer.

Looking ahead, Vitoria said that second-half trading will be stronger than the first due to management actions alongside a "small improvement" in demand.

"Company liquidity remains robust with cash on hand and undrawn credit lines continuing to provide more than £200m of available liquidity," Victoria said.

Shares were down 0.5% at 57.32p by 0854 GMT.

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