15th Oct 2024 10:26
(Alliance News) - Victorian Plumbing Group PLC on Tuesday said it expects annual profit in line with market expectations, and the bathroom retailer announced it will close a one-time rival it snapped up earlier this year.
For the year ended September 30, it Victorian Plumbing expects to report a revenue rise of 4%. Revenue in financial 2023 totalled GBP285.1 million, a rise of around 5.8% from GBP269.4 million.
Adjusted earnings before interest, tax, depreciation, and amortisation are expected to be in line with market expectations. Shore Capital Markets put consensus at GBP27 million. Victorian Plumbing achieved an adjusted Ebitda of GBP23.8 million in financial 2023, a rise of 22% from GBP19.5 million.
"The trends experienced in the first half have continued through the balance of FY24. Robust customer demand, together with the acquisition, have driven further market share gains and strong order volume growth of 10% versus FY23," the company said.
Victorian Plumbing, based in Skelmersdale in Lancashire, said it received "record" orders of 1.0 million during the financial year, compared to 932,000 the year prior.
In addition, the firm announced it will close the Victoria Plum business, which was acquired in May. Victoria Plum, an online only UK bathroom retailer, headquartered in Doncaster, was bought for GBP22.5 million.
"Given that Victoria Plum has recently been through an administration and there is already a cost reduction programme in progress, the company intends to continue to trade the business as normal initially, pending finalisation of our integration plan," Victorian Plumbing explained at the time.
It added in May that it expected the business to "be broadly break even in the second half of 2024". However, Victorian Plumbing said on Tuesday that the unit incurred a GBP2 million adjusted Ebitda loss since acquisition. It contributed GBP15 million of revenue.
Victorian Plumbing added: "The group has recently finalised a consultation process with Victoria Plum's workforce and has taken the decision to close the business and its operations in Doncaster, which is expected to be completed by 31 December 2024."
Victorian Plumbing is to release annual results on January 15.
"This extended schedule will allow the group sufficient time to manage the discontinuation of Victoria Plum," it explained.
Elsewhere, the company said a 544,000 square feet semi-automated distribution centre in Leyland, Lancashire, is now in operation.
"More than half of all daily orders being dispatched from the new site. Management expects all orders to be dispatched from the new distribution centre by the end of the calendar year," it added.
Shares in the company traded 2.6% higher at 109.79 pence each in London on Tuesday morning.
By Eric Cunha, Alliance News news editor
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