Victorian Plumbing Results 'Ahead Of Expectations'

• Results ahead of expectations, with H2 revenue growth as the Group demonstrates continued trading momentum and further market share gains, supported by a robust balance sheet
• Board proposes maiden ordinary full year dividend of 1.1p and an additional special dividend of 1.7p

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 2022 ('2022').

 Financial highlights

• H2 revenue up 6% on last year with revenue for the full year broadly flat at £269.4 million (2021: £268.8 million); an increase of 78% when compared to FY19, pre-Covid-19
  
  
• Further market share gains establishing Victorian Plumbing's position as the UK's No.1 bathroom retailer¹³
  
  

• Gross profit margin increased in H2 to 45% (H1: 44%) with gross profit for the year of £121.0 million (2021: £130.5 million) and a gross profit margin of 45% (2021: 49%) Adjusted EBITDA of £19.5 million (2021: £40.1 million) with adjusted EBITDA margin of 7% (2021: 15%)
  

• Robust, debt-free balance sheet with closing net cash position of £45.5m (2021: £32.7m)

• Free cash flow¹¹ of £14.3 million (2021: £32.6 million). Operating cash conversion⁶ of 73% (2021: 81%)

• The Board proposes a maiden ordinary full year dividend of 1.1p per share and a special dividend of 1.7p per share with a total cash distribution to shareholders of £9.0m

Operational and strategic highlights

• Average order value⁸ up 3% to £306 (2021: £297), against a tough market backdrop that saw total orders⁷ reduce by 3% to 880,000 (2021: 906,000) with an increase of +2% in H2
  
  
• Marketing spend as a percentage of revenue increased to 28% (2021: 26%) reflecting strategic increased investment during H1 FY22 to drive demand as the UK emerged from Covid-19 related lockdown restrictions, resulting in significant market share gains
  
  
• Trustpilot rating⁹ of 'Excellent' with an increased average score of 4.5 (2021: 4.3)

• Further progress in our strategic growth areas of 'Trade' and 'Adjacent categories':
  - Trade revenue grew 25% to £52.8m (2021: £42.1m), representing 20% of total revenue (2021: 16%). During H1 2022 we also launched our first ever targeted trade radio campaign
  - Increased our range of tiles by 56% and lighting by 53% since September 2021, which has driven an increase in revenue from these categories of 23% in 2022. Planned increase in warehouse space will facilitate further growth in these categories 

•  Investment in technology platform to drive future growth:
  - Final testing of website re-platform, which will enhance the customer journey
  - Development and testing of new Trade app, to drive engagement and repeat business from Trade customers

• Good progress on securing new warehouse facilities to support efficiency opportunities and future capacity growth

Current Trading and Outlook

• The Group has had a strong start to FY23 with 10% revenue growth to date, whilst maintaining H2 gross profit margin and with lower marketing spend versus the comparative period last year
  
  
• We are conscious of the current macroeconomic conditions and will continue to monitor consumer behaviour and tailor our pricing and marketing approach accordingly

• We continue to focus on our long-term goals and are making good progress on all of our strategic growth areas. Underpinned by our market share gains we are confident in the future growth prospects of the Group.

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

"Following a tough first half of the financial year, we have returned to growth in the second half, increasing our market share and establishing our position as the UK's No.1 bathroom retailer. Our distinctive brand and extensive choice of quality bathroom products - including quality own-brand ranges and an unrivalled suite of third-party options - remain compelling drivers in attracting consumers to Victorian Plumbing, whilst the strength of our supply chain and our strategic investment in inventory means that the majority of our products have high availability.

"As a highly cash generative business with a strong balance sheet and growing momentum through 2022 and into 2023, we see the macro operating and economic environment as an opportunity to further strengthen our market position and we enter the new financial year as the UK's No. 1 bathroom retailer with confidence and real excitement in our plans for further progress."

Source : Victorian Plumbing PLC

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