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With the business potentially at an important milestone, we thought we'd take a closer look at Victoria PLC's (LON:VCP) future prospects. Victoria PLC designs, manufactures, and distributes flooring products primarily in the United Kingdom, Italy, Belgium, Spain, Australia, the Netherlands, Turkey, France, Ireland, Portugal, and the United States. With the latest financial year loss of UK£108m and a trailing-twelve-month loss of UK£231m, the UK£107m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Victoria will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Victoria is bordering on breakeven, according to the 2 British Consumer Durables analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of UK£13m in 2026. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 119% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Victoria given that this is a high-level summary, but, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Check out our latest analysis for Victoria
Before we wrap up, there’s one issue worth mentioning. Victoria currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.
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There are too many aspects of Victoria to cover in one brief article, but the key fundamentals for the company can all be found in one place – Victoria's company page on Simply Wall St. We've also compiled a list of important factors you should further examine: