Victorian Plumbing Group PLC (AIM:VIC) shares climbed 4% to 76p this morning after the bathroom retailer reported record annual revenue and said trading in the new financial year had started well.
Revenue for the year to 30 September rose 5% to £310 million, with the group continuing to take market share in a subdued home-improvement market.
Order volumes increased 6% to 1.1 million, though average order values dipped slightly to £287. Gross profit grew 4% to £153.2 million, while adjusted EBITDA rose 17% to £31.8 million thanks to more efficient marketing and tighter cost control.
Operating profit jumped 61% to £18 million, reflecting the absence of last year’s one-off transformation costs.
Adjusted profit before tax slipped 6% to £21.8 million, largely due to higher interest costs linked to the long lease on the group’s new distribution centre. Free cash flow strengthened to £24 million and net cash ended the year at £17.7 million, up from £11.2 million.
Victorian Plumbing highlighted strong growth in its trade division, where revenue rose 10% to £73.8 million, and a 42% jump in tiles and flooring sales to £17.6 million.
The group also soft-launched the revived MFI brand over the summer, with early customer feedback positive.
Chief executive Mark Radcliffe said the company had delivered “record revenues” and continued to strengthen its market position.
He added that investment in the brand, the new distribution centre and category expansion underpinned confidence in the group’s long-term prospects, despite a still-volatile consumer backdrop.