Victorian Plumbing signs deal for new Lancashire UK distribution centre
Online bathroom retailer, Victorian Plumbing, has signed a deal for a new 544,000 sq ft purpose-built distribution centre in Lancashire.
The Skelmersdale-based business said the site is close to its existing operations.
It has signed a 20-year lease for the site, scheduled to be completed in autumn 2023, when it will become fully operational after a period of dual running with existing sites to ensure a smooth transition.
The new centre will support the group’s strategic expansion and will enable consolidation of a number of its existing sites, although some existing facilities will be retained to enable further adjacent category expansion.
The group will invest in fitting out the new distribution centre through the current and next financial year. This strategic investment will provide Victorian Plumbing with further operational capacity to support its growth, further strengthening its market position.
An approximately £50m right of use asset, together with a corresponding lease liability of the same value, will be recognised on the balance sheet, following completion of the fit out.
After the initial period of investment and operational transition, cash outflows associated with this lease will be broadly neutral when compared with current property costs.
Group chief executive, Mark Radcliffe, said: “This new facility represents another exciting milestone for the business, providing us with capacity to manage growth in the long term while further establishing Victorian Plumbing’s position as the No. 1 bathroom retailer in the UK.
“I am also delighted that this new facility will create additional jobs and further support our investment in the local area.”
Last month the group reported a marginal increase in revenues for the year to September 30, 2022, 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 was compared 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.
