Victorian Plumbing upbeat for current year after profits jump

22nd Nov 2023 11:08

(Sharecast News) - Victorian Plumbing said on Wednesday that the current year had got off to a strong start, despite a "volatile" consumer backdrop, as it posted a jump in annual profits.

The bathrooms retailer said that while still early in the year, and "against a volatile consumer backdrop", it had seen continued revenue growth and gross margin progression year-on-year.

It also noted that a new distribution centre was due to come online in 2024, which would remove space constraints, improve efficiency and "unlock growth potential".

The update came as Victorian Plumbing posted a 6% jump in revenues in the year 30 September, to £285.1m. Order volumes grew by 6%, although the average order value was flat.

The gross profit margin strengthened by two percentage points to 47%, while pre-tax profits jumped 32% to £15.6m.

Mark Radcliffe, founder and chief executive, said: "This has been a year of continued delivery of our growth plans. 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.

"Our new, purpose-built 544,000 sq ft distribution centre, once operational, will enable further growth in the core bathroom category as well as unlocking further strategic category expansion."

As at 1100 GMT, shares in Victorian Plumbing were up 5% at 78p.