Victorian Plumbing announces profit growth despite “subdued” environment
Victorian Plumbing has announced an increase in first half profit despite a “subdued” trading environment and a small drop in revenue.
In the six months to 31 March, adjusted pre-tax profit rose to £11.5 million from £8.2 million in the same period a year ago while adjusted EBITDA increased by 33% to £13.2 million. Pre-tax profit came in at £5.9 million compared to a previous £5.6 million.
Meanwhile, revenue fell by 1% to £144.6 million or was flat on a like-for-like basis when adjusting for the impact of Easter timing.
The group benefited from lower shipping costs and a shift to own-brand products in the half year, both of which contributed to improved gross margins.
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.”
During the half year, the group strengthened its dedicated trade team to help attract new trade customers, made its first foray into sports sponsorship, and continued to invest in TV and outdoor advertising to raise brand awareness. It also acquired rival bathroom retailer Victoria Plum.
Giving an update on more recent trading, Victorian Plumbing said like-for-like revenue in April and the early part of May was in line with first half trends, with order volume growth offset by lower average order values, although the latter has shown early signs of levelling off.
Looking ahead, the group said revenue will be boosted by market share gains following the acquisition of Victoria Plum. It expects its full year adjusted EBITDA to be broadly in line with current consensus.
Radcliffe added: “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.”
