Profit at Victorian Plumbing increased slightly in the first half of the year as the firm navigated a “subdued” trading environment demand and benefited from lower shipping costs.
In the six months to March, the firm’s pretax profit increased five per cent to £5.9m from £5.6m in the same period last year even as revenue dropped by one per cent, to £144.6m.
The Skelmersdale-based firm noted that it continued to gain market share in a “subdued trading environment”.
Demand for ‘big ticket’ discretionary items was “unchanged”, helping the firm to take market share organically.
The increase in profit compared to last year was partly due to reduced shipping costs, despite increasing geopolitcal tensions.
“By leveraging the positive working relationships we have with our shipping partners, as well as those built with our global suppliers over 20 years of trading, we have avoided supply chain disruption,” the firm said.
Victorian Plumbing announced a dividend of 0.52p per share, up 16 per cent from 0.45p in the same period last year.
“Looking forward, the group will benefit from revenue growth as a result of further market share gains from the acquisition of Victoria Plum, albeit tempered by a continuation of recent trading trends in the market,” it said.
Victorian Plumbing bought Victoria Plum for £22.5m earlier this month. The acquisition is expected to boost earnings per share in the 2025 financial year.
“I am pleased with the Group’s performance in the first half, having increased profitability and consolidated our leading position as the UK’s number one bathroom retailer,” Mark Radcliffe, founder and chief executive, said.
“This robust first half performance, our unchanged momentum into the rest of the year and the exciting developments scheduled for H2 2024, gives the Board confidence in our profitable growth strategy as we continue to deliver long-term value for all stakeholders,” he continued.
Victorian Plumbing said it expects its adjusted earnings before interest, taxation, depreciation and amortisation to be “broadly in line” with current consensus.