Second half rally drives Victorian Plumbing to better than expected final results
Victorian Plumbing, the Skelmersdale-based online bathroom retailer, reported a marginal increase in revenues for the year to September 30, 2022, today, and a fall in pre-tax profits.
Turnover of £269.4m was slightly ahead of the £268.8m achieved a year ago. A pre-tax profit of £11.8m compares with £19.7m at the same point last year.
The board said the results were ahead of expectations with second half revenue growth as the group demonstrates continued trading momentum and further market share gains, supported by a robust balance sheet.
A maiden ordinary full year dividend of 1.1p, is proposed, as well as an additional special dividend of 1.7p.
Net cash increased from £32.7m a year ago to £45.5m.
The group reported its average order value rose by three per cent to £306 against a tough market backdrop that saw total orders reduce by three per cent to 880,000, with an increase of two per cent in the second half of the fiscal year.
The business has made a strong start to financial year 2023 with 10% revenue growth to date, while maintaining the second half gross profit margin and with lower marketing spend versus the comparative period last year.
It said it is conscious of the current macroeconomic conditions and will continue to monitor consumer behaviour and tailor its pricing and marketing approach accordingly.
Founder and chief executive, Mark Radcliffe, said: “Following a tough first half of the financial year, we have returned to growth in the second half, increasing our market share and establishing our position as the UK’s No.1 bathroom retailer.
“Our distinctive brand and extensive choice of quality bathroom products – including quality own-brand ranges and an unrivalled suite of third-party options – remain compelling drivers in attracting consumers to Victorian Plumbing, whilst the strength of our supply chain and our strategic investment in inventory means that the majority of our products have high availability.”
He added: “As a highly cash generative business with a strong balance sheet and growing momentum through 2022 and into 2023, we see the macro operating and economic environment as an opportunity to further strengthen our market position and we enter the new financial year as the UK’s No. 1 bathroom retailer with confidence and real excitement in our plans for further progress.”
