A shift towards own-brand ranges, reduced shipping costs, and favourable foreign exchange movements have all helped Skelmersdale-based online bathroom retailer, Victorian Plumbing, improve profitability.
In a trading update for the year ended September 30, 2023, the company revealed an increase in revenues of around six per cent on the previous year, driven by increased order volumes, with average order value remaining in line with the 2022 financial year.
The second half of 2023 experienced a continuation of the positive trends experienced in the first half, the company said, including favourable market dynamics and robust UK consumer demand.
The group said adjusted EBITDA for fiscal year 2023 is anticipated to be in line with market expectations.
And it also confirmed that the 20-year lease on its new 544,000 sq ft purpose-built distribution centre in Leyland, Lancashire, legally completed yesterday, October 4.
The new centre will support the group’s strategic expansion and will enable consolidation of a number of its existing sites, although some existing facilities will be retained to enable further adjacent category expansion.
The warehouse development remains on time and within budget, it said, with the expectation that the new distribution centre will be operational on schedule in 2024.
Chief executive, Mark Radcliffe, said: “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.
“As a highly cash generative business with a strong balance sheet, we continue to invest in the business – across people, infrastructure, technology, and our new UK distribution centre, the successful delivery of which will enable further growth in the core bathroom category as well as strategic category expansion.”
He added: “We are confident that Victorian Plumbing’s profitable growth strategy will continue to deliver long term value to all stakeholders.”
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