Online bathroom retailer Victorian Plumbing Group has provided an update on trading for the year ending September 30, 2024.
Victorian Plumbing reported its revenue for the year (FY24) had increased by 4% on the prior year, but decreased 1% on a like-for-like basis, excluding the impact of the acquisition of Victoria Plum.
The online retailer says the adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) for FY24 is anticipated to be in line with market expectations.
Victorian Plumbing’s trading statement said that “robust customer demand, together with the acquisition” have driven further market share gains and strong order volume growth of 10% versus FY23 (+3% like-for-like), with a record 1,021,000 orders delivered in the year (FY23: 932,000).
The statement also highlighted an average order value reduction of 5% versus FY23 (4% like-for-like). However, the group believes this has been more than offset by strong gross margin gains, which increased to 50% (FY23: 47%).
Mark Radcliffe, CEO of Victorian Plumbing, commented: “I am pleased with the Group’s performance in FY24 which has been a very busy year for Victorian Plumbing. We have increased profitability, as our higher margin own brand proposition continues to resonate with customers and consolidated our leading position as the UK’s number one bathroom retailer.
“Our state of the art new distribution centre is now operational and will remove previous capacity constraints, enabling us to serve customers more efficiently and execute on our strategic growth plans in our expansion categories and our trade proposition.
“Moreover, the recent decision to close Victoria Plum provides the Group with a significant opportunity to accelerate growth and continue to further the investment in our brand and marketing.”
Rival business Victoria Plum was acquired by Victorian Plumbing in May 2024 and a consultation process with Victoria Plum’s workforce has recently been completed. The decision has been made to close the business and its operations in Doncaster, which is expected to be completed by December 31, 2024.
Radcliffe continued: “This positive momentum and the successful delivery of our warehouse transformation reaffirms confidence in our profitable growth strategy that is delivering long-term value for all stakeholders.”
