Victorian Plumbing declares its first interim dividend

The AIM-traded firm said its revenue grew by 10% year-on-year in the six months ended 31 March, to £146.8m.

Its gross profit improved by 14% to £66.8m, and the company’s gross profit margin expanded by two percentage points to 46%.

Adjusted EBITDA jumped 48% year-on-year to £9.9m, and the adjusted EBITDA margin was ahead two percentage points at 7%.

Victorian Plumbing reported a strong cash position, with net cash at period end totalling £40.9m, up from the prior year’s £33.7m.

Adjusted diluted earnings per share expanded by 58% to 1.9p per share, while Victorian Plumbing declared an interim dividend of 0.45p per share - its first interim distribution.

“Momentum from our strong delivery in the latter part of 2022 has built into the first half of this financial year,” said founder and chief executive officer Mark Radcliffe.

“We have further increased our market share, building on our position as the UK's number one bathroom retailer, through our strategy and unique business model, which have remained constant since our initial public offering.

“We are proud of our investment in a wide range of products, knowing customer choice is ever more important when considered against cost-of-living pressures.”

Radcliffe said the company was continuing to offer good product availability, underpinned by careful inventory management.

“Our new UK distribution centre will represent another key milestone and, together with on-going investment in technology, this will enable further growth in the core bathroom category as well as strategic expansion in adjacent categories.

“Victorian Plumbing's robust business momentum, high cash generation and strong balance sheet supports the announcement of our first interim dividend.”

At 1359 BST, shares in Victorian Plumbing Group were down 1.76% at 80.75p.

Reporting by Josh White for Sharecast.com.