Victorian Plumbing Group (VIC) H2 2025 Pre Recorded earnings summary

Executive summary

• Achieved record revenue of £310 million for FY2025, up 5% year-over-year, maintaining market leadership in online bathroom retail.

• Trade revenue grew 10% to £73.8 million, now 24% of total revenue; tiles and flooring revenue surged 42% to £17.6 million.

• Successfully acquired and closed Victoria Plumb, eliminating brand confusion and a major competitor.

• Launched MFI as a new online homeware brand in July 2025, targeting significant expansion beyond bathrooms and entering the £21bn UK homewares market.

• Completed transition to new warehouse infrastructure, enhancing customer proposition, delivery capabilities, and operational efficiencies.

Financial highlights

• Adjusted EBITDA grew 17% to £31.8 million, with margin up to 10–11%; adjusted profit before tax at £21.8 million, reflecting warehouse transition costs.

• Gross profit increased 4% to £153 million, with gross margin stable at 49% despite new EPR tax.

• Free cash flow rose 29% to £24 million; operating cash conversion improved to 77%.

• Proposed ordinary dividend up 34% to 2.15p, supported by strong cash generation and no debt.

• Adjusted diluted EPS grew 2% to 5.4p.

Outlook and guidance

• Continued revenue growth expected across all categories, in line with market expectations.

• MFI full launch planned for 2026; initial investment to result in a loss of £2.6–£3.4 million in 2025/2026.

• Focus remains on long-term strategic goals, selective M&A, and potential international expansion.

• Confident in future prospects despite a volatile consumer and economic backdrop.