Victoria Plc - comment

Before releasing their H1 numbers next Tuesday (26th), the Company has announced the sale of its ceramic business in Turkey.  Cash proceeds are €10m plus net debt totaling €26.8m, a total €36.8m or £32.9m.  12-month revenue to March 2024 was c. £30.1m with a corresponding EBITDA of €0.9m.  This implies c. 1.0x revenue multiple or c. 35x EBITDA.  The business has underperformed in the last couple of years, making the multiples meaningless.  

Victoria has retained a long-term agreement with the buyer (the Akgün family) to continue supplying Victoria Group-specific ceramic tiles at manufactured-cost pricing.  Proceeds will be used to deleverage, implying c. 0.5x reduction in leverage.