Online bathroom retailer Victorian Plumbing reports strong start to new financial year but sees annual pre-tax profits fall 40% to £11.8m. Tony McDonough reports
Victorian Plumbing says it has made a strong start to its new financial year as it reports a 40% fall in annual profits.
Revenues for the 12 months to September 30, 2022, at the online bathroom retailer were broadly flat at £269.4m. Pre-tax profits came in at £11.8m compared to £19.7m last year.
However, the firm says although total orders for the year fell by 3% to 880,000, they actually recovered in the second half of the fiscal year, rising by 2%. Year-on-year revenues are up 10% in the first few weeks of its new financial year.
Victorian Plumbing founder and chief executive Mark Radcliffe launched the business from his parents’ garden shed in Formby in Merseyside in 200. Now based in Skelmersdale it employs more than 550 people and also has bases in Manchester and Birmingham.
It is the UK’s leading online specialist bathroom retailer, offering a range of more than 32,000 products to consumers and trade customers. Average order value is £306.
Mr Radcliffe floated the business London Stock Exchange’s Alternative Investment Market (AIM) in June 2021. It was the largest ever IPO on AIM and initially valued the company at £850m. In October he increased his stake in the business.
A maiden ordinary full year dividend of 1.1p, is proposed, as well as an additional special dividend of 1.7p. Net cash increased from £32.7m a year ago to £45.5m.
Mr Radcliffe, 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 remain compelling drivers in attracting consumers to Victorian Plumbing. 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.”