Victorian Plumbing Group trading ahead of expectations

Shares of Skelmersdale, Lancashire-based Victorian Plumbing Group gained some respite on Thursday, rising about 14% amid a positive trading update that was ahead of market expectations.

Shares of Victorian Plumbing rose to around 41p — but the company joined the stock market in June 2021 at £2.62 per share.

The firm has a current stock market value of about £132 million.

Victorian Plumbing published an update on trading for the year ended September 30, 2022,.

“The financial year finished positively with revenue, earnings, and cash flow all ahead of consensus market expectations,” said the company.

H2 revenue was up c.5% on last year, with a particularly strong Q4 performance with revenue for the full year broadly unchanged from FY21, an increase of c.78% when compared to FY19, pre-COVID.

Against a wider bathroom market that is down year on year, this establishes Victorian Plumbing’s position as the No. 1 bathroom retailer in the UK.

At the same time, through a combination of carefully controlling prices and ongoing proactive management of the supply chain, gross margins have improved in H2 vs. H1 FY22.

Victorian Plumbing continues to be highly cash generative and we will start the new financial year with in excess of £43m of net cash.

“We have maintained a strong inventory position in order to maximise availability and minimise the risks from supply chain disruption.

Whilst the operating and economic environment is challenging, as a highly cash generative business with a strong balance sheet and growing momentum through 2022 we enter the new financial year with confidence in our plans for further progress.”