Victorian Plumbing poised for transformational year despite half year revenue dip
Lancashire-headquartered bathroom products retailer Victorian Plumbing expects to reap the rewards of its investment in a new distribution centre and the acquisition of rival Victoria Plum.
Its half year results to the stock market this morning showed that top line revenue declined from £146.8m to £144.6m during the first half of the financial year to 31 March 2024.
Order volume grew by 2% to 494,000 (H1 2023: 482,000) and Average Order Value declined by 4% to £293 (H1 2023: £305).
Profit before tax increased from £5.6m to £5.9m.
But the group expects to benefit from revenue growth as a result of further market share gains from the acquisition of Victoria Plum, albeit tempered by a continuation of recent trading trends in the market.
Victoria Plum is undergoing a cost reduction programme but ongoing losses will have a “marginal impact” on profitability in the second half of 2024.
The company described the new £26m capital expenditure in a new distribution centre, which it completed in October 2023, as a “landmark investment” and said the building will enable the business to expand stock ranges, and improve efficiency and profitability.
Mark Radcliffe, Founder and Chief Executive Officer of Victorian Plumbing, said: “I am pleased with the Group’s performance in the first half, having increased profitability and consolidated our leading position as the UK’s number one bathroom retailer. At the same time, we have embarked upon a year of transformational change with significant investment in our people, technology and operations.
“Our new distribution centre, once operational, will remove space constraints, enabling us to deliver on our strategic plans in expansion categories and our trade proposition. Moreover, the recent acquisition of Victoria Plum represents another exciting strategic milestone and provides a unique opportunity to accelerate our growth.”
He also said continued investment in the brand gives him confidence, including a three-year partnership with Bolton Wanderers Football Club, alongside an “unrelenting approach to online marketing”.
“This robust first half performance, our unchanged momentum into the rest of the year and the exciting developments scheduled for H2 2024, gives the Board confidence in our profitable growth strategy as we continue to deliver long-term value for all stakeholders,” Radcliffe said.
