Victoria Plum to cease trading after it makes nearly £2m loss in four months

In a trading update for the full year ending September 30, 2024, the bathroom retailer said sales increased around 4% year on year and decreased 1% on a like-for-like basis, excluding the impact of the acquisition of Victoria Plum.

The company said adjusted EBITDA for the year is anticipated to be in line with market expectations as it delivered a record 1,021,000 orders in the year.

Victoria Plum, which was acquired in May, contributed around £15m of revenue and incurred an adjusted EBITDA loss of nearly £2m in the period since acquisition. The parent company said it had “recently finalised a consultation process with Victoria Plum’s workforce and has taken the decision to close the business and its operations in Doncaster, which is expected to be completed by December 31, 2024”.

Victorian Plumbing chief executive Mark Radcliffe said: “I am pleased with the group’s performance in FY24, which has been a very busy year for Victorian Plumbing. We have increased profitability, as our higher margin own brand proposition continues to resonate with customers and consolidated our leading position as the UK’s number-one bathroom retailer. At the same time, we have delivered a year of transformational change with significant investment in our people, technology and operations.

“Our state-of-the-art new distribution centre is now operational and will remove previous capacity constraints, enabling us to serve customers more efficiently and execute our strategic growth plans in our expansion categories and our trade proposition. Moreover, the recent decision to close Victoria Plum provides the group with a significant opportunity to accelerate growth and continue to further the investment in our brand and marketing.

“This positive momentum and the successful delivery of our warehouse transformation reaffirms confidence in our profitable growth strategy that is delivering long-term value for all stakeholders.”