Strong growth in profits for Victorian Plumbing Group

Skelmersdale-based online bathroom retailer, Victorian Plumbing, has negotiated a ‘year of transformation’ to achieve 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.

The business recorded a £9m pre-tax profit, down from £15.6m a year ago - which is due to one-off exceptional costs of £11m linked to the opening of its new 544,000 sq ft semi-automated distribution centre in Leyland, and its acquisition in May last year of Victoria Plum, as well as £3.1m of share-based payments.

The board has recommended an increase in the total annual dividend, to 1.61p per share.

Order volumes with the business grew by 10 per cent 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.

A debt-free balance sheet had a closing cash position of £11.2m following investment in acquiring Victoria Plum for £22.2m, and the warehouse transformation spend of £26.4m.

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.”