Victorian Plumbing benefits from “robust” customer demand
Victorian Plumbing has said its adjusted EBITDA for the year to 30 September 2024 is anticipated to be in line with market expectations.
In a trading update, the bathroom retailer reported that revenue for the period increased by around 4%, but was down 1% on a like-for-like basis when the impact of its acquisition of Victoria Plum was excluded.
Victorian Plumbing said robust customer demand, together with the acquisition, drove market share gains and strong order volume growth of 10% on the prior year. This meant it delivered a record 1,021,000 orders in the period compared to a previous 932,000.
The retailer said customers are responding well to its own brand ranges which has led to strong gross margin gains.
Mark Radcliffe, chief executive of Victorian Plumbing, said: “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.
“At the same time, we have delivered a year of transformational change with significant investment in our people, technology and operations.”
Acquired in May 2024, Victoria Plum contributed around £15 million of revenue and incurred an adjusted EBITDA loss of circa £2 million in the period following the acquisition. After concluding a consultation process with Victoria Plum’s workforce, Victorian Plumbing has decided to close the business and cease operations at its Doncaster location, with the closure expected to be completed by 31 December 2024.
The retailer said its new 544,000 square feet semi-automated distribution centre in Lancashire is now operational, with more than half of all daily orders being dispatched from the site. It expects the site to handle all orders by the end of the year.
Radcliffe said: “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.”
Looking ahead, he added: “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.”
