Victorian Plumbing Group PLC on Wednesday said its revenue increased but profit fell in a ‘year of transformation’.
The Lancashire, England-based bathroom retailer said revenue increased 3.7% in the 12 months to the end of September, to £295.7 million from £285.1 million year-on-year.
Pretax profit fell 42% to £9.0 million from £15.6 million the year prior.
The company said pretax profit fell due to exceptional costs associated with the transformation of its warehouse, as well as the acquisition and the subsequent closure of Victoria Plum.
The company closed Victoria Plum and its operations, which it said resulted in website traffic being redirected to Victorian Plumbing. Victoria Plum, an online only UK bathroom retailer, headquartered in Doncaster, was bought in May.
The company moved to a new 544,00 square feet distribution centre in Leyland, Lancashire during the financial year, with a total spend of £26.4 million.
Founder and Chief Executive Officer Mark Radcliffe said: ‘We have successfully delivered on two 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.’
Administrative expenses increased 14% to £135.8 million from £119.3 million in financial 2023.
The group proposed a final dividend of 1.09 pence per share, up 15% from 0.95 pence in 2023. This gives a full-year dividend for the year of 1.61 pence, up 15% from 1.40 pence in the previous year.
The company said revenue in the first quarter of the new year was up 3% on 2024 ‘against a tough comparator’.
October and November trading was ‘soft’, due to cautious marketing to limit disruptions from new warehouse infrastructure and ongoing consumer uncertainty.
The company said a return to its usual marketing approach led to high single digit growth in December.
Victorian Plumbing said its gross profit margin continues to improve from the effects of new warehouse infrastructure and the closure of Victoria Plum. However, it said some of this benefit will be eroded from increased national insurance and living wage costs.
The company said it remains confident in meeting full-year market expectations for profit.
Radcliffe said: ‘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 544,000 square feet 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.’
Shares in Victorian Plumbing were down 1.5% to 94.60 pence in London at midday on Wednesday, losing earlier gains.
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