Victoria Plum halves losses in wake of trademark dispute
Bathroom specialist Victoria Plum has halved its pre-tax losses in a year which saw the company win a High Court battle against a rival over trademark infringements.
In the year to the end of February 2017, the Hessle-based firm saw its loss on ordinary activities before tax narrow to £6.2m from £12.4m the year before.
Turnover slumped 18% to £57.6m from £70.6m but the company said that post year end the group has seen positive year on year revenue growth and a return to profitability.
In the six months to October 2017, the company says it has seen consistent and growing double-digit sales growth on a like-for-like basis, and positive EBITDA, saying the return to growth follows a period of “consolidation and recovery”.
The group has also been boosted by an £11m investment from shareholders to grow the business.
In its latest filings at Companies House, Victoria Plum directors said that the “unlawful actions” of rival Victorian Plumbing, who were found to have paid to advertise in search engine results for the Victoria Plum brand name, had a “material impact” on the firm over a long period of time.
The court passed judgement in favour of the Yorkshire-based retailer in November 2016, and Victoria Plum is now seeking damages from its rival.
Merseyside-based Victorian Plumbing however was also successful in a counterclaim against the firm for passing off, which would mean that Victoria Plum is forced to pay out a sum.
However, in its latest filing at Companies House, Victoria Plum said: “This may result in a damages payment from us to offset our award but it is anticipated that any offset will be relatively modest.”
Meanwhile Victoria Plum said that significant improvements that have been made to the infrastructure of the business have now created the “foundations for sustainable growth and return to profitability.”
The company, which employs 240 staff, signed a £200m deal to sell a majority stake in the business to US private equity firm TPG in 2014.
