Victorian Plumbing profit up in transformational year

Victorian Plumbing

Victorian Plumbing Group has announced revenue of £144.6 million for H1 2024.

The online bathroom giant has seen an 8% increase in gross profit for the period, from £66.8 million (H1 2023) to £72.3 million in 2024, with a gross profit margin of 50% – up 4 points from 2023’s 46%. This represents the highest gross margin since the company listed back in 2021.

The overall revenue for the first half of the year is £144.6m and, despite that showing as marginally down 1% compared to 2023, the company states this represents flat like-for-like results when adjusted for the impact of this year’s Easter timing.

The Group said the gross profit margin improvement “drove a 33% increase in adjusted EBITDA to £13.2m (H1 2023: £9.9m) and an adjusted EBITDA margin increase of 2% points to 9% (H1 2023: 7%).”

Furthermore, the retailer’s interim dividend of 0.52p per share reflects a 16% increase from H1 2023 which was recorded at 0.45p per share.

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.”

Victorian Plumbing’s most recent investment was the acquisition of rival online retailer Victoria Plum. Commenting on the Group’s investment strategy, Radcliffe said: “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. Continued investment in our brand, epitomised by our three-year partnership with Bolton Wanderers Football Club, alongside our unrelenting approach to online marketing and an ever-improving customer experience, provides strong foundations for the future.”

Looking forward, the Group says it will benefit from revenue growth as a result of further market share gains from the acquisition, albeit “tempered by a continuation of recent trading trends in the market.” It also says that while the ongoing Victoria Plum cost reduction programme is finalised, losses from the business will have a “marginal impact on Group profitability in H2 2024.”

Radcliffe continued: “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.”

Headquartered in Skelmersdale, Lancashire, the Group employs over 700 people across nine locations, including sites in Leyland, Doncaster, Manchester, and Birmingham.

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