Despite the costs of acquiring an online rival, online retailer Victorian Plumbing reports “strong growth” in profits and states it is “well positioned” for further growth.

As reported in its results for the year ended September 30, 2024, operating profit of £11.2m saw a drop of202 27% from £15.3m in 2023, after £8.2m costs associated with the acquisition and closure of Victoria Plum and subsequent warehouse transformation.

However, the company saw a gross profit growth of 10% to £147.8m (2023: £134.6m), with like-for-like gross profit up 5%.

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It stated profitability was improving year-on-year, driven by product mix shifting towards own-brand ranges, reduced shipping costs and favourable foreign exchange movements

The retailer reported revenue growth of 4% to £295.7m 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 RMI market.

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 an increasing proportion of its sales were for own brand products.

Its own-brand ranges now account for 79% of revenue (2023: 78%), which it stated had a beneficial impact on gross margin.

Founder and CEO of Victorian Plumbing 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.

“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.”