Online bathroom retailer Victorian Plumbing Group has announced profit growth, in “robust” first half year results.

Despite flat sales on a like-for-like basis, the financial results (for the six months ended 31 March 2024) reported a revenue of £144.6million but with a gross profit increase of 8% to £72.3million.

Adjusted EBITA saw a growth of 33%, up to £13.2million against £9.9million, in first half of 2023.

Sponsored Video

Lauren Goodbrand of Kitchens International on winning the Kbsa Concept Designer Award 2024

According to the company, consumers continue to purchase “proportionally” more of its own-brand products, reducing its average order value by 4%.

However, it cited the shift towards lower value products and lower shipping costs contributed to its growth of gross margin.

Victorian Plumbing also saw growth of trade sales by 9% to £32.3million and “expansion” categories of tiles, lighting and décor increased 19% to £5.6million.

In addition, the bathroom retailer highlighted its first foray into sports advertising with the sponsorship of Bolton Wanderers Football Club, along with continued investment in TV and outdoor advertising has helped raise brand awareness.

These final figures follow the acquisition of Victoria Plum for £22.5milion.

For the six months ended 31 March 2024, unaudited management accounts indicate Victoria Plum held around £10million of stock at provisional book value, cash of about £3million, deposits with suppliers of approximately £2million and tangible fixed assets of circa £1million.

Looking forward, the Group states it will benefit from revenue growth as a result of further market share gains from the acquisition of Victoria Plum, albeit tempered by recent trading trends in the market.

While the ongoing Victoria Plum cost reduction programme is finalised, Victorian Plumbing reports losses from the business will have a marginal impact on Group profitability in H2 2024, therefore adjusted EBITDA in FY 2024 is expected to be “broadly” in line with current consensus.

Founder and chief executive officer of Victorian Plumbing Mark Radcliffe 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. 

“Our new distribution centre, once operational, will remove space constraints, enabling us to deliver on our strategic plans in expansion categories and our trade proposition.

“Moreover, the recent acquisition of Victoria Plum represents another exciting strategic milestone and provides a unique opportunity to accelerate our growth. 

“Continued investment in our brand, epitomised by our three-year partnership with Bolton Wanderers Football Club, alongside our unrelenting approach to online marketing and an ever-improving customer experience, provides strong foundations for the future.

“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.”