LONDON (ShareCast) - (Sharecast News) - Victorian Plumbing reported half-year results with revenue and profit growth supported by operational improvements on Wednesday, alongside continued market share gains and strong cash generation, as it prepared to expand into the UK homewares market with the relaunch of the MFI brand.
For the six months ended 31 March, revenue rose 6% to £152.8m, with adjusted EBITDA up 15% to £15.2m, yielding a margin of 10%.

Adjusted profit before tax increased 3% to £11.8m, and free cash flow grew 50% to £12.9m.

The AIM-traded firm raised its interim dividend 35% to 0.7p per share, and noted a 10% rise in order volumes, with a growing share of own-brand sales now accounting for 81% of revenue.

Following the completion of its warehouse transformation in December, the company saw improvements in logistics and service, including a later next-day delivery cut-off and growth in trade and tile categories.

Trade revenue rose 12% to £36.1m, and tiles and decor revenue jumped 36% to £7.6m.

Marketing efficiency also improved, with total marketing spend as a share of revenue falling to 28.8% while brand awareness increased to 72%.

The group confirmed plans to enter the £20bn UK homewares market in the 2026 financial year under the revived MFI brand, acquired as part of the Victoria Plum deal.

A £3m investment was being made to support the launch, with no corresponding revenue expected in 2025.

Victorian Plumbing said April delivered double-digit revenue growth, though full-year growth was expected to moderate to between 4% and 6% as the group lapped the Victoria Plum acquisition.

It said it expected to deliver full-year adjusted EBITDA, excluding MFI, in line with market expectations, with adjusted profit before tax forecast between £21m and £22m.

"Having invested significantly in preparing the business for future growth last year, I am pleased with the group's strategic progress in the first half," said founder and chief executive officer Mark Radcliffe.

"We are fully operational in our new purpose built warehouse and have continued to improve our customer proposition, while expanding product range into other rooms within the home and taking significant market share gains in a subdued trading backdrop.

"I am very excited about the upcoming re-invention of MFI, allowing us to tap into more of the £20bn UK homewares market."

Radcliffe said the "dedicated and ambitious" team, decades of e-commerce knowledge and "best-in-class" proprietary software, together with the recognisable MFI brand, would help to deliver the company's strategic ambition over the medium-term.

"Victorian Plumbing has always taken an opportunistic and entrepreneurial approach; alongside this we have built a business that invests in the future, has solid financial foundations and is committed to delivering long-term value to all shareholders, as epitomised by our enhanced capital allocation policy and increased interim dividend."

At 0942 BST, shares in Victorian Plumbing were down 16.35% at 89.93p.

Reporting by Josh White for Sharecast.com.

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