Profits down at Victorian Plumbing
Online bathroom retailer Victorian Plumbing has revealed that it has seen a dip in operating profit of 40%.
In the business’s full year results for the 2022 financial year, operating profit was down to £12.1m, from £20m in 2021.
Adjusted earnings also saw a 51% fall to £19.5m, while gross profit saw a fall of 7% to £121m,
A 3% increase in average order value and a 3% dip in the total number of orders reflected the wider economic environment, with inflation leading to higher prices and less spending power for consumers. This likely contributed to a small boost in revenue of £0.6m.
However, the retailer has seen an increase of revenue of 78% compared to 2019, before the pandemic.
Victorian Plumbing also said that marketing spend as a share of revenue increased 2% from last year to 28%, with this reflecting an increased strategic investment to gain a larger share in the market as the UK recovered from COVID-19 related lockdown restrictions.
The retailer said it has had a strong start to the 2023 financial year with 10% revenue growth to date.
Mark Radcliffe, founder and chief executive officer of Victorian Plumbing, said: “As a highly cash generative business with a strong balance sheet and growing momentum through 2022 and into 2023, we see the macro operating and economic environment as an opportunity to further strengthen our market position and we enter the new financial year”.