Victorian Plumbing Group (VIC) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached £152.7m, up 6% year-over-year, with Q2 growth accelerating to 9% as new warehouse operations stabilized and the business outperformed the broader RMI market.

• Trade revenue grew 12% to £36.1m, now 24% of total revenue; towels/tiles & décor category saw 36% growth to £7.6m.

• Victoria Plum business was discontinued, with website redirected and infrastructure exited by January 2025.

• Transition to new warehouse infrastructure completed, supporting operational efficiency and ongoing software/automation optimization.

• Continued investment in brand awareness, including new creative campaigns and sports sponsorships, has narrowed the gap with competitors.

Financial highlights

• Adjusted EBITDA rose 15% to £15.2m, with margin up to 10%; adjusted PBT increased 3% to £11.8m and adjusted diluted EPS up 4% to 2.8p.

• Free cash flow surged 50% to £12.9m, with free cash flow margin improving from 6% to 8% and operating cash conversion at 88%.

• Volume up 10% to over 500,000 orders, an all-time record, with active customers up 9%.

• Own brand product mix increased to 81%, supporting higher margins.

• Interim dividend increased 35% to 0.70p per share.

Outlook and guidance

• Full-year revenue growth expected between 4% and 6% as Victoria Plum acquisition laps.

• Adjusted EBITDA (excluding MFI) expected in line with market expectations; adjusted PBT forecasted at £21m–£22m including MFI launch costs.

• Mid-single digit annual revenue growth anticipated through September 2028, with EBITDA margin improvement from end of 2025 as warehouse efficiencies are realized.

• MFI expected to incur similar losses in FY2026 as in FY2025; further guidance post-launch.