Victorian Plumbing Group PLC (AIM:VIC), the online bathroom retailer, expects to deliver modest year-on-year revenue growth in the second half of the current fiscal year.
The company said it remains “acutely aware” that its customers are tightening their belts and will continue its “careful approach” to price rises in the second half of the year.
Revenue in the six months to the end of March eased 5% to £133.9mln from £140.7mln a year earlier, the company revealed in its interim results, but was up 39% on two years earlier – a largely Covid-free period.
Adjusted underlying earnings (EBITDA) plunged by two-thirds to £6.7mln from £20.1mln the year before while the adjusted EBITDA margin slumped to 5% from 14%.
Profit before tax was four-fifths lower at £2.7mln, versus £14.5mln in the six months to the end of March 2021.
No interim dividend has been declared but the company does intend to propose a dividend at the time of its full-year results.
The retailer ended the reporting period with cash and cash equivalents of £33.7mln, up from £22.3mln 12 months earlier.
Victorian Plumbing sees half-year revenue decline https://t.co/lOzIAtzlou #plumbing #bathroom #homeimprovement #diy #bathrooms #homeandliving pic.twitter.com/bU4wohjX9d
— Insight DIY (@InsightDIY) May 17, 2022
“Our market-leading proposition and our innovative and proactive approach to marketing have enabled us to continue growing our market share, even against a challenging market backdrop,” said Mark Radcliffe, the founder and chief executive officer of Victorian Plumbing.
"Following a nine-month period during which the economy was opening up after Covid-19 restrictions and discretionary spending has been more focused on leisure activities, our relentless focus on investing in quality and innovation has resulted in revenue growing 39% on a two-year basis.
"I am pleased with the progress we have made with our technological developments, and I am excited about the opportunities presented by our new website. This new platform will enable us to further penetrate our core market and provide the best possible base for us to further expand our trade and adjacent product areas.
"We continue to be focused on our long-term goals. We are making good progress on all of our strategic initiatives and are confident in the future growth prospects of the group,” Radcliffe concluded.
Shares in Victorian Plumbing were up 2.8% at 51.8p in afternoon trading.