The new board of directors at historic carpet manufacturer Victoria says it is likely that the company will break even at best for the full year ending next April.
The board, which was appointed following a heated general meeting at the beginning of October, says it has undertaken a detailed review of the current trading and short term prospects.
"This review is continuing. However, it is already apparent that the company is likely to break even at best for the full year ending April 4 2013, at a pre-tax level before exceptional costs.
"Current trading, in both Australia and the UK remains weak and significantly behind budget," it said.
"The directors wish to assure shareholders that they are doing everything they can to remedy the situation and a further update will be provided to the market in the company's half year statement at the end of this month."
The new board is made up of the consortium which had been vying to take charge of Victoria for much of this year.
At the general meeting Alexander Anton, a member of the founding family of the firm, Geoff Wilding and Andrew Harrison were voted onto the board while company chairman Katherine Innes Ker and director David Garman were voted off it.
The outcome was the culmination of a long and increasingly bitter dispute which split members of the founding family.