Victorian Plumbing beats full-year expectations across the board

6th Oct 2022 12:38

(Sharecast News) - Specialist online bathroom retailer Victorian Plumbing said in a trading update on Thursday that its financial year finished "positively", with revenue, earnings, and cash flow all ahead of consensus market expectations.

The AIM-traded firm said second-half revenue was up 5% year-on-year, with a "particularly strong" fourth quarter performance.

Revenue for the full 12 months ended 30 September was "broadly unchanged" from the 2021 period, which was an increase of about 78% compared to the pre-pandemic 2019 period.

"Against a wider bathroom market that is down year on year, this establishes Victorian Plumbing's position as the number one bathroom retailer in the UK," the board said in its statement.

"At the same time, through a combination of carefully controlling prices and ongoing proactive management of the supply chain, gross margins have improved in the second half versus the first."

Victorian Plumbing said it was still "highly cash-generative", adding that it was starting the new financial year with more than £43m in net cash.

"We have maintained a strong inventory position in order to maximise availability and minimise the risks from supply chain disruption.

"Whilst the operating and economic environment is challenging, as a highly cash generative business with a strong balance sheet and growing momentum through 2022 we enter the new financial year with confidence in our plans for further progress."

Victorian Plumbing said it would release its preliminary results for the year ended 30 September on 6 December.

At 1222 BST, shares in Victorian Plumbing Group were up 15.54% at 41.13p.

Reporting by Josh White at Sharecast.com.