Victorian Plumbing Group PLC on Tuesday said it has signed an agreement to enter into a 20-year lease for a new, 544,000 square foot, purpose-built distribution centre in Lancashire.

Shares in the Skelmersdale, England-based bathroom retailer were up 6.1% at 81.72 pence each in London on Tuesday around midday.

Victorian Plumbing’s new distribution centre, which is located close to its existing operations, is scheduled to be completed in Autumn 2023. It will then become fully operational after a period of dual running with existing sites to ensure a smooth transition.

The company explained that the move will support its strategic expansion and will enable consolidation of a number of the company’s existing sites, although some existing facilities will be retained to enable further adjacent category expansion.

It also plans to invest in fitting out the new distribution centre through the current and next financial year.

Victorian Plumbing noted that a £50 million right of use asset, together with a corresponding lease liability of the same value, will be recognised on the balance sheet following completion of the fit out.

Founder & Chief Executive Mark Radcliffe said: ‘This new facility represents another exciting milestone for the business, providing us with capacity to manage growth in the long-term while further establishing Victorian Plumbing’s position as the No. 1 bathroom retailer in the UK. I am also delighted that this new facility will create additional jobs and further support our investment in the local area.’

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