Victorian Plumbing Group Plc · LSE:VIC
Victorian Plumbing — H1 2025 Earnings Presentation
36 slides from Victorian Plumbing's earnings presentation, May 14, 2025
Slide 1: Victorian Plumbing Group plc Half Year Results Presentation
> 2 Victorian Plumbing Group plc HALF YEAR RESULTS PRESENTATION SIX MONTHS ENDED 31 MARCH 2025 Presented by Mark Radcliffe (CEO) and Daniel Barton (CFO) victorian 14 MAY 2025 plumbing.coux
Slide 2: Summary of strategic progress and operational performance in the period
SUMMARY OF STRATEGIC PROGRESS AND OPERATIONAL PERFORMANCE IN THE PERIOD. Transition to new warehouse infrastructure Revenue of £152.7m (+6%), continuing to complete. outperform the wider RMI market1. The closure journey complete: Trade revenue grew by 12% to £36.1m, now - Website redirected November
Slide 3: Review of Financials
REVIEW OF FINANCIALS
Slide 4: Group revenue growth of 6%, boosted by revenue growth of 9% in Q2
GROUP REVENUE GROWTH OF 6%, BOOSTED BY REVENUE GROWTH OF 9% IN Q2. Victorian Plumbing Victoria Plum H1 2025 H1 2024 PoP £m £m £m £m Group Revenue 148.8 3.9 152.7 144.6 6% Cost of sales (73.7) (2.4) (76.1) (72.3) (5%) Gross profit 75.1 1.5 76.6 72.3 6% Gross profit margin % 50% 38% 50% 50% 0ppt Under
Slide 5: Order volume up 10%, continuing to outperform the wider RMI market
ORDER VOLUME UP 10%, CONTINUING TO OUTPERFORM THE WIDER RMI MARKET. 600 10.0% 8.0% 500 6.0% 4.0% 400 2.0% YoY Movement '000 300 0.0% 542 Nov-23 Nov-24 May-24 Feb-24 Aug-24 Feb-25 Jun-24 Mar-24 Mar-25 Oct-23 Dec-23 Jan-24 Apr-24 Jul-24 Sep-24 Oct-24 Dec-24 Jan-25 482 494 +10% 486 453 +2% -2.0% +6% (7
Slide 6: Double digit growth in trade and a return to growth in consumer
DOUBLE DIGIT GROWTH IN TRADE AND A RETURN TO GROWTH IN CONSUMER. 350 180 305 296 +3% 293 +2% 282 160 152.7 300 289 (4%) (4%) 146.8 144.6 140.7 140 133.9 36.1 20.9 29.6 +12% 32.3 24% 250 15% 20% 81% 24.6 22% 120 18% 200 79% 100 3.28 £m 3.21 £ 3.06 3.11 3.14 77% 150 80 76% 119.8 117.2 116.6 60 109.3 1
Slide 7: 36% growth in Tiles & Décor revenue to £7.6m
36% GROWTH IN TILES & DÉCOR REVENUE TO £7.6M, WITH PLENTY OF OPPORTUNITY AHEAD OF US… 8.0 7.6 +36% Victorian Plumbing <1%... 7.0 6.0 5.6 +19% 4.7 5.0 +57% 4.0 £1.4bn £m 3.0 +7% 3.0 2.8 2.0 1.0 … huge market share opportunity. - H1 2021 H1 2022 H1 2023 H1 2024 H1 2025 7
Slide 8: Shift to own brand products maintains high gross profit margin
SHIFT TO OWN BRAND PRODUCTS MAINTAINS HIGH GROSS PROFIT MARGIN. 160 50% 50% 80.0 49% 140 28.4 (2ppt) 33.7 30.1 19% 46% 70.0 33.7 23% 21% 44% 120 24% 34.4 26% 60.0 100 Gross Profit (£m) 50.0 80 £m 40.0 76.6 72.3 66.8 +6% 124.3 68.5 +8% 60 113.0 114.5 +2ppt +13% 107.0 81% 30.0 59.1 99.5 77% 79% (14%)
Slide 9: Marketing efficiencies fund investment in brand marketing for future growth
MARKETING EFFICIENCIES FUND INVESTMENT IN BRAND MARKETING FOR FUTURE GROWTH. 50.0 H1 2021 H1 2022 H1 2023 H1 2024 H1 2025 45.0 Online marketing 27.3% 28.5% 26.3% 26.7% 25.3% Brand marketing - 1.5% 2.1% 2.8% 3.5% 4.0 5.3 40.0 3.1 Total marketing 27.3% 30.0% 28.4% 29.5% 28.8% 2.0 35.0 30.0 25.0 £m 20.
Slide 10: Significant improvement in brand awareness driven by effective media and creative
SIGNIFICANT IMPROVEMENT IN BRAND AWARENESS DRIVEN BY EFFECTIVE MEDIA AND CREATIVE. 100% 92% 90% 85% 84% 80% 72% 70% 60% 50% 40% 30% 20% 13% 10% 10% 7% 7% 7% 0% 2020 2021 2022 2023 2024 2025 1Victorian Plumbing prompted brand tracking – February 2025 vs. February in prior year periods. 10
Slide 11: Underlying cost scaleability emerging; but people cost more
UNDERLYING COST SCALEABILITY EMERGING; BUT PEOPLE COST MORE. 70.0 H1 2021 H1 2022 H1 2023 H1 2024 H1 2025 Marketing 27.3% 30.0% 28.4% 29.5% 28.8% 60.0 People costs* 4.8% 6.0% 6.4% 7.3% 8.2% 5.0 (17%) Property & other overheads 2.3% 3.1% 3.9% 4.1% 3.3% 6.0 5.8 Underlying costs 34.4% 39.1% 38.7% 40.9%
Slide 12: Continued margin improvement
CONTINUED MARGIN IMPROVEMENT. 25.0 12% 14% 1% 1% 10% 10% 20.0 9% -1% 10% 8% Adjusted EBITDA Margin Adjusted EBITDA (£m) 15.0 9% 6% 7% 10.0 20.1 5% 4% 15.2 13.2 +15% +33% 5.0 9.9 +47% 2% 6.7 (67%) - 0% H1 2021 H1 2022 H1 2023 H1 2024 H1 2025 Adjusted EBITDA Adjusted EBITDA margin *Excluding share-bas
Slide 13: IFRS long-term lease accounting increases non-cash finance charges and depreciation
IFRS 16 LONG-TERM LEASE ACCOUNTING INCREASES NON-CASH FINANCE CHARGES AND DEPRECIATION. 1.0 20.0 13% 0.5 18.0 0.3 0.0 0.1 16.0 (0.5) 14.0 (1.4) 8% 8% (1.7) (1.8) Adjusted PBT (£m) (1.0) (2.0) 12.0 (2.7) (1.5) (0.1) 10.0 6% £m 18.5 (0.2) (2.0) 8.0 4% (2.5) 6.0 11.5 11.8 +40% +3% 8.2 (3.0) (0.7) 4.0 +
Slide 14: Strong cash generation reflects strong underlying performance
STRONG CASH GENERATION REFLECTS STRONG UNDERLYING PERFORMANCE. 88% 85% 18.0 16.0 66% 65% 14.0 12.0 Free Cash Flow (£m) 1 10.0 17.1 8.0 12.9 6.0 21% +50% 8.6 4.0 +32% 6.5 +364% 2.0 1.4 (92%) - H1 2021 H1 2022 H1 2023 H1 2024 H1 2025 1 2 Free cash flow Operating cash conversion 1 Free cash flow is cas
Slide 15: Closure of Victoria Plum and warehouse transformation complete
CLOSURE OF VICTORIA PLUM AND WAREHOUSE TRANSFORMATION COMPLETE. 18.0 2.0 16.0 14.6 (1.3) 14.0 12.9 (2.4) 12.0 10.0 (3.6) £m 8.0 6.0 4.0 2.0 (7.7) 0.0 (1.9) (0.3) (2.0) 2 Change in working capital Capital expenditure Dividend Other Adjusted EBITDA Lease repayments Free cash flow Closure of Victoria P
Slide 16: Updated capital allocation policy enhances shareholder return
UPDATED CAPITAL ALLOCATION POLICY ENHANCES SHAREHOLDER RETURN. 0.80 • Delivering value back to • Prioritising growth in existing TAM shareholders with progressive while unlocking new markets dividend growth 0.70 0.60 • Leveraging the Victorian Plumbing • Target cover range now reduced to experience
Slide 17: Strategy Update
STRATEGY UPDATE
Slide 18: Continuing to invest in brand, advance our functionality and improve the customer experience
CONTINUING TO INVEST IN BRAND, ADVANCE OUR FUNCTIONALITY AND IMPROVE THE CUSTOMER EXPERIENCE. • Victoria Plum website New creative launched, redirected including new jingle • New creative launched, including new jingle • Announcing a new • Free tile samples strategic opportunity • Free tile samples
Slide 19: Re-inventing a much loved brand
RE-INVENTING A MUCH LOVED BRAND
Slide 20: 20
20
Slide 21: Strategic entry into homewares adjacency
STRATEGIC ENTRY INTO HOMEWARES ADJACENCY WHY US? As market leader in our core segment, we are already familiar with the customer and will now be able to tap into anew £20bn TAM*. Expanding into other areas of the home provides an opportunity to continue meeting our strategic objectives and mitigates
Slide 22: Why MFI?
WHY MFI? 100% 80% 60% 40% 20% 0% -arare asset nowadays, which provides a unique opportunity to launch anew business ina fragmented sector. -UK consumer spending on furniture is forecast to reach £23bn by 2029, with >90% of this outside the bathroom’. -ahome brand that remains one of the most well-kn
Slide 23: Current Trading & Outlook
CURRENT TRADING & OUTLOOK
Slide 24: Current trading and 2025 outlook
• Momentum in Q2 further improved in April with double digit revenue growth during the month. • Looking forward, the rate of growth in revenue is expected to reduce from mid-May as the Group laps the acquisition of Victoria Plum, such that revenue growth is expected to be between 4% and 6% by the en
Slide 25: Three-year outlook to September 2028
• For the three-year period to September 2028, assuming no improvement in the consumer backdrop in RMI or change in the competitive landscape, the Board anticipates that Victorian Plumbing (excluding MFI) will continue to take market share, with revenue growth year-on-year in the mid-single digits.
Slide 26: Victorian Plumbing
victorian plumbing.ou
Slide 27: Appendices
APPENDICES
Slide 28: Balance sheet
H1 2025 H1 2024 2024 £m £m £m Goodwill 18.8 - 18.8 Property, plant and equipment 27.7 16.3 27.8 Right-of-use assets 48.0 48.5 45.4 Other non-current assets 5.3 4.7 4.7 Non-current assets 99.8 69.5 96.7 Inventory 43.4 33.2 43.7 Cash 10.9 36.1 11.2 Other current assets 8.8 7.7 6.9 Current assets 63.1
Slide 29: Cash flow summary
Victorian Victoria H1 2025 H1 2024 Plumbing Plum £m £m Adjusted EBITDA 14.6 0.6 15.2 13.2 Movement in working capital 3.6 (8.3) (4.7) (0.6) Cash generated from operating activities before exceptionals 18.2 (7.7) 10.5 12.6 Exceptional & share based payment cash outflow (1.5) - (1.5) (1.3) Cash genera
Slide 30: Transitioning into our new warehouse infrastructure
TRANSITIONING INTO OUR NEW WAREHOUSE INFRASTRUCTURE. Victorian Plumbing Previous Current: Pre-MFI Current: Post-MFI Previous Current: Pre-MFI Current: Post-MFI Warehouse A - Skelmersdale VP - DC Vacant Vacant - MFI growth 110,000 - 110,000 Warehouse B - Skelmersdale VP - Support VP - Tiles & Décor D
Slide 31: Transitioning into our new warehouse infrastructure (costs)
TRANSITIONING INTO OUR NEW WAREHOUSE INFRASTRUCTURE. Victorian Plumbing Previous Current: Pre-MFI Current: Post-MFI Previous Current: Pre-MFI Current: Post-MFI Warehouse A - Skelmersdale £0.4m £0.4m £0.4m £0.4m - £0.4m Warehouse B - Skelmersdale £0.6m £0.6m £0.6m £0.6m £0.6m £0.6m Warehouse C - Skel
Slide 32: The journey to closure
THE JOURNEY TO CLOSURE. 17th May 2024 Further closure costs c.£8m Victorian Plumbing Ltd acquired AHK Designs Ltd on cash free, debt free basis for £22.2m (from existing cash reserves) Stock transferred to Victorian Plumbing c.£8.5m Purchase price: Revenue: £22.2m £14.7m 20% Annualised revenue: Adj.
Slide 33: Bathroom and bathroom accessories market forecast to grow by 1.6% in 2024 to £1,742m
BATHROOM AND BATHROOM ACCESSORIES MARKET FORECAST TO GROW BY 1.6% IN 2024 TO £1,742M. UPTICK IN GROWTH EXPECTED IN 2027 AND 2028 TO 3.5% AND 2.4%, RESPECTIVELY. 2,000 35% 1,800 30% 1,600 1,400 25% 1,200 20% 1,000 £m 15% 800 600 10% 400 5% 200 - 0% 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 20
Slide 34: Consistent market leader amongst online specialist bathroom retailers
CONSISTENT MARKET LEADER AMONGST ONLINE SPECIALIST BATHROOM RETAILERS, WITH A GROWING ONLINE MARKET SHARE. 45% 45% 43% 42% 42% 42% 40% 40% 41% 40% 40% 40% 38% 38% 38% 38% 39% 39% 38% 38% 38% 37% 37% 38% 37% 37% 36% 35% 36% 35% 34% 34% 35% 30% 25% 23% 24% 23% 23% 21% 21% 20% 18% 18% 18% 17% 17% 15% 1
Slide 35: Number one retailer for bathroom products across online and offline channels
NUMBER ONE RETAILER FOR BATHROOM PRODUCTS ACROSS BOTH ONLINE AND OFFLINE CHANNELS. 19.9% 20.0% 18.1% 16.3% 15.0% 10.8% 9.7% 10.0% 8.6% 7.9% 7.3% 7.0% 6.8% 6.4% 5.0% 4.5% 4.1% 3.3% 3.5% 3.1% 2.3% 1.6% 1.4% 0.3% 0.0% 2015 2023 2015 2023 Online specialists Store-based retailers 1Mintel Bathroom and Bat
Slide 36: Please read the following disclaimers when using the information in this presentation
PLEASE READ THE FOLLOWING DISCLAIMERS WHEN USING THE INFORMATION IN THIS PRESENTATION. The information and opinions provided in this presentation are provided as of the date of this presentation. Certain statements in this presentation constitute forward looking statements (including beliefs or opin
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