Victorian Plumbing Announces 29% Rise In Revenue

Victorian Plumbing Group plc ('Victorian Plumbing', 'the Group'), the UK's leading online specialist bathroom retailer, announces its full year results for the year ended 30 September 2021 ('2021')

Financial highlights

• Revenue up 29% to £268.8 million (2020*: £208.7 million)
  
  
• Gross profit⁴ up 42% to £130.5 million (2020*: £92.0 million) with a gross profit margin¹ of 49% (2020*: 44%)
  
  
• Adjusted EBITDA² up 53% to £40.1 million (2020*: £26.2 million) with adjusted EBITDA margin³ of 15% (2020*: 13%)
  
  
• Operating cash flow⁵ up 18% to £32.6 million (2020*: £27.6 million). Operating cash conversion⁶ of 81% (2020*: 105%)
  
  
• After accounting for £9.4 million of exceptional costs relating to the IPO in June 2021 and share-based payments of £7.7 million, profit before tax reduced by 17% to £19.7 million (2020*: £23.7 million)

* Adjustments made to comparative figures previously reported are detailed in note 2 and are as stated within the IPO Admission document.

Operational highlights

• Total orders⁷ up 17% to 906,000 (2020: 776,000)
  
  
• Active customers⁸ up 13% to 638,000 (2020: 565,000)
  
  
• Average order value⁹ up 10% to £297 (2020: £269)
  
  
• Marketing spend as a percentage of revenue increased marginally to 26% (2020: 25%) with increased investment in more focused digital performance-based marketing to complement offline creative content
  
  
• Trustpilot rating¹⁰ remains 'Excellent' with an average score of 4.3 across the year (2020: 4.3)
  
  
• We introduced enhanced point-of-sale functionality to support customer purchasing decisions, adding realistic CGI imagery and 360 degree product views, more detailed product descriptions, and upgraded interaction with our consumer finance partner

Outlook

As we reported in our full year trading update on 7 October 2021, we experienced more subdued market conditions during the summer months following the easing of restrictions, before customer demand improved somewhat during September.  

Through the first two months of FY22, whilst consumers have continued to spend more on leisure and less on big ticket material homeware purchases, demand and revenue have been broadly the same as last year and 41% ahead of FY20.

The adaptability of our supply chain and investment in-stock inventory means we are currently operating from a position of strength relative to others. Given the popularity of our own brand offering, we are able to absorb most of the current supply chain pressures. However, as we look to balance revenue growth with profitability in the short-term, gross margins may move closer to those achieved in FY20.

As we move through this changing consumer environment, we are being even more aggressive on our marketing approach to further increase our market share in line with our long-term growth ambitions.

We continue to be focused on our long-term goals and to make progress on all of our strategic areas and we are confident of the future growth prospects of the Group.

Mark Radcliffe, Founder and Chief Executive Officer of Victorian Plumbing Group plc, said:

"This has been a milestone year for Victorian Plumbing as we accelerated our growth, supported by the continued dedication and agility of colleagues around the business, and successfully completed our listing on the London Stock Exchange. Our distinctive brand and extensive choice of quality bathroom products have been key drivers in attracting consumers to our platform, whilst the strength of our supply chain and our investment in inventory means that the majority of our products have remained immediately available.

"Although the short-term outlook is difficult to predict as the world normalises from the events of the last two years, it is inevitable that consumer buying behaviour will continue to move online. As the UK's largest online bathroom specialist retailer, Victorian Plumbing is uniquely placed to help consumers obtain exactly what they need for their dream bathroom.

"The Board remains confident in the medium to long-term growth prospects for Victorian Plumbing."

Source : Victorian Plumbing

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