Skelmersdale, Lancashire-based bathroom retailer Victorian Plumbing Group plc said it will shut down operations of loss-making Victoria Plum, the rival it bought five months ago, by the end of the year.
The company said Victoria Plum contributed about £15 million of revenue since acquisition on 17 May, but incurred an adjusted EBITDA loss of about £2 million. It said it had finalised a consultation process with Victoria Plum’s workforce and will close the business and its operations at its headquarters in Doncaster by 31 December.
Victoria Plumbing bought Victoria Plum, an online only UK bathroom retailer which has recently been through an administration, for £22.5 million in cash, primarily to take the name.
For the latest 12-month period, Victoria Plumbing reported on Tuesday that revenue increased by about 4% on the prior year, but fell about 1% on a like-for-like basis, excluding the impact of the acquisition of Victoria Plum.
It said adjusted EBITDA for the year would likely be in line with market expectations.
Mark Radcliffe, CEO of Victorian Plumbing, said: “I am pleased with the Group’s performance in FY24 which has been a very busy year for Victorian Plumbing. We have increased profitability, as our higher margin own brand proposition continues to resonate with customers and consolidated our leading position as the UK’s number one bathroom retailer. At the same time, we have delivered a year of transformational change with significant investment in our people, technology and operations.”
“Our state of the art new distribution centre is now operational and will remove previous capacity constraints, enabling us to serve customers more efficiently and execute on our strategic growth plans in our expansion categories and our trade proposition. Moreover, the recent decision to close Victoria Plum provides the Group with a significant opportunity to accelerate growth and continue to further the investment in our brand and marketing.”
“This positive momentum and the successful delivery of our warehouse transformation reaffirms confidence in our profitable growth strategy that is delivering long-term value for all stakeholders.”