Victorian Plumbing confident after successful warehouse expansion and acquisition

Leyland-based online bathroom retailer, Victorian Plumbing, says it has successfully negotiated a ‘year of transformation’ while achieving a rise in annual sales in the 12 months to September 30, 2024.
Financial figures for the reporting period showed it hit £295.7m in revenues, a four per cent improvement on the previous year, but recorded a £9m pre-tax profit, down from £15.6m a year ago. However, this included one-off exceptional costs of £11m linked to the opening of its new 544,000 sq ft semi-automated distribution centre in Leyland, Lancashire, and its acquisition in May last year of Victoria Plum, as well as £3.1m of share-based payments.
The board has recommended a 16% increase in the total annual dividend, to 1.61p per share.
Order volume grew by 10% to more than one million orders for the first time.
The group said profitability has improved year-on-year, driven by product mix shifting towards Victorian Plumbing own brand ranges as well as by reduced shipping costs and favourable foreign exchange movements.
It said it enjoys a robust, debt-free balance sheet with a closing cash position of £11.2m (2023: £46.4m), following investment in acquiring Victoria Plum for £22.2m, and the warehouse transformation spend of £26.4m.
The Victoria Plum acquisition contributed £14.7m of revenue.
Trading for the current financial year has showed that overall first quarter revenue was up three per cent on 2024, against a tough comparator.
Trading in October and November was soft, impacted by a cautious approach to marketing as the group sought to bed in its new warehouse infrastructure without disrupting the customer experience and ongoing UK consumer uncertainty.
As the transition to the new warehouse infrastructure neared completion, the business reverted to its usual marketing approach and, pleasingly, recorded high single digit growth in December.
Through 2025 the business said it will prioritise its expansion category growth plans and more confidently spend on efficient marketing to drive more volume.
It is confident in delivering profit in line with full year market expectations.
Founder and CEO, Mark Radcliffe, said: “We have successfully delivered on two strategic priorities, firstly completing our warehouse transformation on time and in line with budget and, secondly, to accelerate growth through the acquisition of our namesake, Victoria Plum, which reduces considerable brand marketing confusion for our customers.
“2024 has been a year of transformation against a subdued trading backdrop and continued uncertainty in UK consumer behaviour.
“Despite this, 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.”
He added: “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 sq ft distribution centre, now fully operational, will enable further growth in the core bathroom category, as well as unlocking strategic category expansion.
“We are confident that Victorian Plumbing’s profitable growth strategy will continue to deliver long term value to all stakeholders.”