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Victorian Plumbing Group has reported a 26% increase in operating profits to £15.3m and a 6% increase in revenues to £285.1m, for the year ended 30 September 2023.
Its gross profit was up 11% compared with last year at £134.6m and adjusted EBITDA also increased 22% to £23.8m.
The group stated that profitability improved year on year and was driven by product mix shifting towards Victorian Plumbing own-brand ranges as well as by reduced shipping costs and favourable foreign exchange movements.
Its gross profit margin also increased in H2 2023 to 49% (H1 2023: 46%), with 2023 full-year gross profit margin of 47% (2022: 45%).
In FY 2023, the group’s market spend as a percentage of revenue reduced from 28.3% last year to 27.8% and brand awareness score improved to 64% (2022: 60%) following the launch of our new creative ‘Boss Your Bathroom’ concept in December 2022.
Its trade revenue also grew 13% to £59.5m (2022: £52.8m), representing 21% of total revenue (2022: 20%).
Additionally, tiles and lighting revenue grew by 35% to £7.3m (2022: £5.4m) and the upcoming increase in warehouse space will facilitate further growth in these, and other, expansion categories.
Looking ahead, the group stated that the opening of its new distribution centre in 2024 will “remove space constraints, unlock growth potential and create efficiency; all of which will support the delivery of the medium-term outlook”.
Mark Radcliffe, founder and chief executive officer of Victorian Plumbing, said: “We have further strengthened our position in the market and maintained our position as the number one UK bathroom retailer.
“This has been a year of continued delivery of our growth plans. 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.”
He added: “As a highly cash generative business with a strong balance sheet, we continue to invest in the business – across people, technology and infrastructure. Our new purpose-built 544,000 square feet distribution centre, once operational, will enable further growth in the core bathroom category, as well as unlocking further strategic category expansion. We are confident that Victorian Plumbing’s profitable growth strategy will continue to deliver long-term value to all stakeholders.”
