Victorian Plumbing anticipates meeting market expectations for its adjusted EBITDA for the fiscal year ending 30 September 2024.
- The company experienced a 4% increase in revenue, despite a minor decline in like-for-like revenue.
- A significant 10% growth in order volume was recorded, reaching over one million orders.
- The company’s own brand ranges have contributed to improved gross margins and customer response.
- The acquisition of Victoria Plum impacted revenue and operational changes with an impending operational closure.
Victorian Plumbing has announced that it expects its adjusted EBITDA for the fiscal year ending 30 September 2024 to align with market predictions. This positive outlook is supported by a noted 4% rise in overall revenue despite a slight 1% decrease in like-for-like revenue, excluding the acquisition of competitor Victoria Plum.
The company reported a noteworthy 10% increase in order volume, achieving a record 1,021,000 orders, surpassing the previous year’s 932,000 orders. This surge in order volume is primarily attributed to robust customer demand.
Victorian Plumbing has successfully enhanced its gross margins, largely due to the favourable reception of its own brand ranges by customers. CEO Mark Radcliffe highlighted the company’s ability to increase profitability and consolidate its market leadership position as the top bathroom retailer in the UK.
The acquisition of Victoria Plum in May, which added £15 million to revenue but resulted in a £2 million EBITDA loss, has led to strategic decisions, including the closure of Victoria Plum operations by 31 December following a workforce consultation process.
Victorian Plumbing’s new semi-automated distribution centre in Lancashire is now operational, dispatching more than half of its daily orders. The facility is expected to handle all orders by the year’s end, facilitating enhanced operational efficiency.
Radcliffe expressed confidence in the state-of-the-art distribution centre’s capacity to eliminate previous capacity constraints and support strategic growth, including expansion into new categories and trade propositions. The company’s decision to close Victoria Plum presents an opportunity to accelerate growth and further investment in brand and marketing.
Victorian Plumbing’s strategic moves and robust customer demand are set to sustain its favourable market position and profit trajectory.
