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Victorian Plumbing well-positioned for growth after ‘year of transformation’

Victorian Plumbing well-positioned for growth after ‘year of transformation’

Victorian Plumbing has said it is well positioned for further growth after a year of transformation and adjusted pre-tax profit growth.

The bathroom retailer reported a 25% rise in adjusted pre-tax profit to £23.1m for the year ending 30 September 2024, with revenue increasing by 4% to £295.7m.

However, on a like-for-like basis, revenue decreased by 1% after accounting for the short-term impact of its £22.2m acquisition of rival Victoria Plum, completed last May.

Order volume grew by 10% to more than one million orders, marking a significant milestone for the business. Meanwhile, Victorian Plumbing saw improved profitability, driven by a shift toward its own-brand product range and reduced shipping costs, as well as favorable foreign exchange movements.

The year also saw Victorian Plumbing complete the transition to a new 544,000 sq ft semi-automated distribution centre in Leyland, Lancashire. The company is now dispatching all orders from this new facility, which is expected to drive operational efficiencies in the years ahead.

As part of its ongoing transformation, the bathroom specialist acquired Victoria Plum but then closed the rival’s operations in Doncaster in August 2024.

The website traffic from Victoria Plum was redirected to Victorian Plumbing’s platform from November, streamlining its brand presence and reducing marketing confusion, according to the company’s CEO and founder Mark Radcliffe.

While the retailer recorded a decrease in operating profit to £11.2m, down 27% from the previous year, it said this was largely due to £8.2m in exceptional costs tied to the warehouse transformation and the acquisition and closure of Victoria Plum.

Looking ahead, Victorian Plumbing is focusing on further growth, particularly in its expansion categories, and is confident in meeting full-year market expectations despite the challenges faced in the first quarter of the current financial year.

Radcliffe said: “We have successfully delivered on two strategic priorities, firstly completing our warehouse transformation on time and in line with budget and, secondly, to accelerate growth through the acquisition of our namesake Victoria Plum, which reduces considerable brand marketing confusion for our customers.

“2024 has been a year of transformation against a subdued trading backdrop and continued uncertainty in UK consumer behaviour. Despite this, 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 across our ranges.

“As a highly cash generative business with a strong balance sheet, we continue to invest in the business; across people, technology and infrastructure.”

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