15
October 2024
Victorian Plumbing Group
plc
("Victorian Plumbing" or "Group")
Full Year Trading Update and
Notice of Results
Victorian Plumbing Group plc (AIM:
VIC), the UK's leading bathroom retailer, today provides an update
on trading for the year ended 30 September 2024
("FY24").
Trading Update
The Group is pleased to report that
revenue for FY24 increased by c.4% on the prior year (decreased
c.1% on a like-for-like basis, excluding the impact of the
acquisition of Victoria Plum1). Adjusted EBITDA for FY24
is anticipated to be in line with market expectations.
The trends experienced in the first
half have continued through the balance of FY24. 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).
Customers are responding well to the
Group's own brand proposition and have continued to trade away from
third party brands into the Group's own brand range, resulting in
an average order value reduction of c.5% versus FY23 (c.4%
like-for-like). However, this has been more than offset by strong
gross margin gains, which increased 300bps to 50% (FY23:
47%).
Cessation of Victoria Plum
operations
Victoria Plum was acquired on 17 May
2024; it contributed c.£15m of revenue and incurred an adjusted
EBITDA loss of c.£2m in the period since acquisition. The Group has
recently finalised a consultation process with Victoria Plum's
workforce and has taken the decision to close the business and its
operations in Doncaster, which is expected to be completed by 31
December 2024.
New Distribution Centre
The Group is pleased to confirm that
its new 544,000 square feet semi-automated
distribution centre in Leyland, Lancashire, is now operational,
with more than half of all daily orders being dispatched from the
new site. Management expects all orders to be dispatched from the
new distribution centre by the end of the calendar year.
Notice of Preliminary
Results
Preliminary results for the year
ended 30 September 2024 will be published on 15 January 2025. This
extended schedule will allow the Group sufficient time to manage
the discontinuation of Victoria Plum.
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. At the same time, we have
delivered a year of transformational change with significant
investment in our people, technology and
operations.
"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.
"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."
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1
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Acquisition of AHK Designs Ltd
trading as Victoria Plum
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-ENDS-
For
further information, please contact:
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Victorian Plumbing Group plc
Mark Radcliffe, Chief Executive
Officer
Daniel Barton, Chief Financial
Officer
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via FTI
Consulting
+44 20 3727
1000
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FTI
Consulting (Financial PR)
Alex Beagley, Harriet Jackson, Amy
Goldup, Lia Bevan
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+44 20 3727
1000
VictorianPlumbing@fticonsulting.com
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Houlihan Lokey UK Ltd (Nominated Adviser)
Sam Fuller, Tim
Richardson
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+44 20 7839
3355
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Barclays Bank PLC (Joint Broker)
Nicola Tennent, Stuart
Muress
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+44 20 7623
2323
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Deutsche Numis Securities Limited (Joint
Broker)
Luke Bordewich, Oliver
Steele
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+44 20 7260
1000
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About Victorian Plumbing Group
Victorian Plumbing is
the UK's leading bathroom retailer, offering a wide range
of over 34,000 products to B2C and trade customers. The Group
provides a one-stop shop solution for the entire bathroom with more
than 150 own and third party brands across a wide spectrum of price
points.
Victorian Plumbing's product design
and supply chain strengths are complemented by its creative and
brand-focused marketing strategy to drive significant and growing
traffic to its platforms.
Headquartered in Leyland, the Group
employs over 600 people across several locations
in Lancashire, Manchester and Birmingham.