Shares of Skelmersdale, Lancashire-based bathroom retailer Victorian Plumbing Group rose about 5% on Tuesday after it announced it signed a 20-year lease for a new 544,000 square foot, purpose-built distribution centre in Lancashire, located close to its existing operations.
The new distribution centre is scheduled to be completed in Autumn 2023 and will become fully operational after a period of dual running with existing sites to ensure a smooth transition.
“The new distribution centre will support the group’s strategic expansion and will enable consolidation of a number of the group’s existing sites, although some existing facilities will be retained to enable further adjacent category expansion,” said Victorian Plumbing.
“The group will invest in fitting out the new distribution centre through the current and next financial year.
“This strategic investment will provide the group with further operational capacity to support its growth, further strengthening its market leading position.
“A c.£50m right of use asset together with a corresponding lease liability of the same value will be recognised on the balance sheet, following completion of the fit out.
“After the initial period of investment and operational transition, cash outflows associated with this lease will be broadly neutral when compared to current property costs.”
Victorian Plumbing Group founder and CEO Mark Radcliffe said: “This new facility represents another exciting milestone for the business, providing us with capacity to manage growth in the long-term while further establishing Victorian Plumbing’s position as the No. 1 bathroom retailer in the UK.
“I am also delighted that this new facility will create additional jobs and further support our investment in the local area.”