Victorian Plumbing delivers strong H1 sales but growth softens in Q3

(Sharecast News) - Bathoom retailer Victorian Plumbing left its full-year guidance unchanged after reporting a double-digit increase in revenues and a slight improvement in adjusted earnings in the first half, but pointed to a slight softening of growth in the third quarter which it blamed on a subdued consumer environment. The firm reported a 10.5% year-on-year increase in revenues to £168.8m over the six months to 31 March, helped by a order volumes growing 12% to a record 609,000 orders, offsetting a 3% decline in average order value.

Adjusted EBITDA was up just 1.3% at £15.4m, held back by the company's investment in MFI, the defunct furniture brand that was relaunched as an online-only retailer in July 2025. Excluding MFI, adjusted EBITDA would have grown by 11.7% to £17.0m.

Free cash flow was flat on last year at £12.9m, while the interim dividend was raised 5.7% to 0.74p per share.

Over the first weeks of the second half, however, revenue growth slowed to a mid-single digit range amid "the widely reported subdued consumer sentiment driven by the Middle East conflict and its impact on discretionary spending", Victorian Plumbing said.

While there have been no material cost increases to date, the group said it was aware of potential inflationary pressure, particularly from imports from China and energy prices.

Nevertheless, despite factoring in a more subdued consumer environment for the second half, the group still expects full-year revenue and adjusted pre-tax profit to be in line with market forecasts of £329.5m and £21.8m respectively.

"Despite the persistent macroeconomic uncertainty, we remain on track to deliver record full year revenue and profit expectations, and we are confident that our strategy will continue to deliver long-term value for all stakeholders," said chief executive Stephnie Judge.

The stock was 1.9% lower at 77p by 1354 BST.

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