Victorian Plumbing: Interim Sales Increased; MFI Launch Next Year

• Continuing to grow market share
• New infrastructure facilitating category expansion
• Imminent MFI launch

Victorian Plumbing Group plc ("Victorian Plumbing", the "Group"), the UK's leading bathroom retailer⁽¹⁾, announces its half year results for the six months ended 31 March 2025 ("H1 2025", "the period"), highlighting the significant progress made against strategic priorities.

Financial highlights

• H1 2025 revenue growth of 6% to £152.7m (H1 2024: £144.6m), boosted by revenue growth of 9% (or £6.5m) in Q2, following completion of the warehouse transformation in December 2024.
  
  
• Adjusted EBITDA increased by 15% to £15.2m (H1 2024: £13.2m); adjusted EBITDA margin increased 1%pt to 10% (H1 2024: 9%).
  
  
• Depreciation and net finance costs increased to £4.1m (H1 2024: £3.4m) reflecting the depreciation of the right-of-use asset and the finance cost on the new warehouse lease arrangement, together with lower interest received following significant capex and M&A activity in H2 2024.
  
  
• Adjusted PBT increased 3% to £11.8m (H1 2024: £11.5m); adjusted PBT margin stable at 8% (H1 2024: 8%).
  
  
• Operating cash conversion strong at 88% (H1 2024: 65%), free cash flow up 50% to £12.9m (H1 2024: £8.6m).
  
  
• Interim dividend of 0.70p per share (H1 2024: 0.52p per share), reflecting a 35% increase and in line with our updated capital allocation policy - dividend cover ratio of 2.25x - 3.00x (previously 3.00x - 3.50x).

Strategic and operational highlights

• Total orders(11) increased 10% to 542,000 (H1 2024: 494,000) reflecting continued market share gains in a subdued trading environment.
  
  
• Customers continued to purchase proportionately more of our own brand products, reducing average order value ("AOV")(12) by 4% to £282 (H1 2024: £293); own brand products at 81% of total revenue (H1 2024: 79%).
  
  
• Warehouse transformation, completed in December 2024, has facilitated further progress in strategic growth areas of trade and expansion categories:

         o Trade revenue increased 12% to £36.1m (H1 2024: £32.3m) and now represents 24% of total revenue (H1 2024: 22%). Introduced third party trade credit option in February 2025.

         o Next day delivery cut-off time extended from midday to 4pm.

         o Tiles & décor revenue increased 36% to £7.6m (H1 2024: £5.6m) and represented 5% of total revenue (H1 2024: 4%). Now offering free tile sample delivery to accelerate growth in tiles & décor.

• Total marketing spend as a % of revenue reduced to 28.8% (H1 2024: 29.5%).
  
  o Online marketing spend as a % of revenue reduced to 25.3% (H1 2024: 26.7%).
  
  o Brand marketing spend as a % of revenue increased to 3.5% (H1 2024: 2.8%).

• Brand awareness(13) has increased to 72% (H1 2024: 59%).

• Victoria Plum ceased trading in November 2024, with the expensive Doncaster lease and other operating costs exited in January 2025. 

Re-invented MFI brand facilitates launch into UK Homewares market in H1 FY26

• Strategic entry into homewares adjacency; using our competitive advantage to ensure sustainable growth.
  
  
• UK Homewares TAM is £20bn(14) (vs. c.£1.5bn for just UK Bathroom(1)).
  
  
• MFI brand and three letter domain name obtained as part of the recent Victoria Plum acquisition.
  
  
• Product range fits with Victorian Plumbing's existing customer base.
  
  
• Utilises the platform provided by our proprietary software, e-commerce knowledge and supply chain logistics, which enabled the growth of our bathroom business.
  
  
• c.£3m investment in people and property costs in FY25 as part of launch, with no corresponding FY25 revenue.

Current trading and outlook for Full Year 2025

• Momentum in Q2 further improved in April with double digit revenue growth during the month.
  
  
• Looking forward, the rate of growth in revenue is expected to reduce from mid-May as the Group laps the acquisition of Victoria Plum, such that revenue growth is expected to be between 4% and 6% by the end of the financial year.
  
  
• The benefits of the strategic progress made in the period, together with the efficient marketing spend environment that we are now operating in, supports our confidence in delivering full year adjusted EBITDA (excluding MFI) in line with current market expectations.
  
  
• Taking into account the MFI set-up and launch costs, full year adjusted PBT is expected to be between £21m and £22m. 

Mark Radcliffe, Founder and Chief Executive Officer of Victorian Plumbing, said:

"Having invested significantly in preparing the business for future growth last year, I am pleased with the Group's strategic progress in the first half. We are fully operational in our new purpose built warehouse and have continued to improve our customer proposition, while expanding product range into other rooms within the home and taking significant market share gains in a subdued trading backdrop. 

"I am very excited about the upcoming re-invention of MFI, allowing us to tap in to more of the £20bn UK Homewares market. Our dedicated and ambitious team, decades of e-commerce knowledge and best-in-class proprietary software, together with the recognisable MFI brand, will help to deliver our strategic ambition over the medium-term. 

"Victorian Plumbing has always taken an opportunistic and entrepreneurial approach; alongside this we have built a business that invests in the future, has solid financial foundations and is committed to delivering long-term value to all shareholders, as epitomised by our enhanced capital allocation policy and increased interim dividend." 

Analyst and investor webinar

A webinar for sell-side analysts and investors will be held today, 14 May 2025, at 09.30am BST. If you wish to join the webinar, please contact FTI Consulting via: VictorianPlumbing@fticonsulting.com.

Source : Victorian Plumbing Group PLC

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