Bathroom retailer Victorian Plumbing Group has revealed that although its profits took a hit as a result of costs associated with its acquisition of online retailer Victoria Plum, it nonetheless experienced 'strong growth' and says it consolidated its position as 'the UK's number one bathroom retailer'.
According to its audited results for the year ended 30th September 2024, operating profit of £11.2m decreased by 27% (2023: £15.3m) after the 'exceptional costs' of £8.2m associated with the warehouse transformation and the acquisition and closure of Victoria Plum. In spite of this, the retail giant recorded a 'robust, debt-free balance sheet' with closing cash position of £11.2m (2023: £46.4m), following investment in acquiring Victoria Plum for consideration of £22.2m and warehouse transformation spend of £26.4m.
The company said that profitability has improved year-on-year, driven by product mix shifting towards Victorian Plumbing own brand ranges as well as by reduced shipping costs and favourable foreign exchange movements. It recorded strong gross profit growth of 10% to £147.8m (2023: £134.6m), with like-for-like gross profit up 5%.
The retailer saw an increase in revenue of 4% to £295.7m (2023: £285.1m); on a like-for-like basis, excluding the impact of the acquisition of AHK Designs Limited ('Victoria Plum') in May 2024, revenue decreased 1%, still outperforming the wider RMI market. In addition, order volume grew by 10% to over one million orders for the first time and average order value decreased by 5% in the same period; like-for-like order volume growth of 3% was offset by an average order value decrease of 4%, as customers continue to buy an increasing proportion of its own brand products. Own brand products represented 79% of total revenue (2023: 78%), which it says had a beneficial impact on gross margin.
Mark Radcliffe, founder & CEO of Victorian Plumbing, said: "We have successfully delivered on 2 strategic priorities, firstly completing our warehouse transformation on time and in line with budget and, secondly, to accelerate growth through the acquisition of our namesake Victoria Plum, which reduces considerable brand marketing confusion for our customers.
"2024 has been a year of transformation against a subdued trading backdrop and continued uncertainty in UK consumer behaviour. Despite this, our clearly defined strategy and unique business model have resulted in increased order volumes and resilient average order values, with customers continuing to appreciate the choice of great value products that we offer across our ranges.
"As a highly cash generative business with a strong balance sheet, we continue to invest in the business; across people, technology and infrastructure. Our new purpose-built 544,000sq ft distribution centre, now fully operational, will enable further growth in the core bathroom category, as well as unlocking strategic category expansion. We are confident that Victorian Plumbing's profitable growth strategy will continue to deliver long-term value to all stakeholders."
