Return to profit growth for Victorian Plumbing
Victorian Plumbing, the Skelmersdale-based online bathroom retailer, reported an increase in revenues for the year to September 30, 2023, today, and a return to pre-tax profit growth.
Revenue was up 6% on last year to £285.1 million (2022: £269.4 million) on the back of order volumes also of 6% to 932,000, while the average order value remained flat in the same period.
The business made £15.6m in pre-tax profit, a 32% increase on £11.8m the previous year.
The official numbers confirmed an upbeat trading update in October said an increase in revenues of around six per cent on the previous year, driven by increased order volumes, were in line with the 2022 financial year, and that the business enjoyed a better second half.
Mark Radcliffe, founder and chief executive of Victorian Plumbing, said: “We have further strengthened our position in the market and maintained our position as the number one UK bathroom retailer.
“This has been a year of continued delivery of our growth plans. Our clearly defined strategy and unique business model have resulted in increased order volumes and resilient average order values, with customers continuing to appreciate the choice of great value products that we offer across our ranges.
“As a highly cash generative business with a strong balance sheet, we continue to invest in the business – across people, technology and infrastructure. Our new purpose-built 544,000 square feet distribution centre, once operational, will enable further growth in the core bathroom category, as well as unlocking further strategic category expansion. We are confident that Victorian Plumbing’s profitable growth strategy will continue to deliver long-term value to all stakeholders.”
He also said the company has made “a positive start to the current year” with continued revenue growth and gross profit margin progression versus the comparative period last year.
As previously reported on TheBusinessDesk.com, Victorian Plumbing has taken occupancy of the distribution centre in Leyland, Lancashire, built by Caddick Construction, which legally completed in early October.
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 and be operational in 2024.
In other changes, Daniel Barton replaced Paul Meehan as chief financial officer during the year.
Meehan had prepared the finance function and the wider group for its stock market float in 2021 and Radcliffe noted that he had ensured the business “has the necessary systems and structures in place to deliver its growth ambitions”.