# Victorian Plumbing reports higher revenue and stronger cash generation in FY25 results - Link: https://www.directorstalkinterviews.com/victorian-plumbing-reports-higher-revenue-and-stronger-cash-generation-in-fy25-results/4121228746 - Published: 2025-12-03T07:15:40+00:00 - Author: Amilia Stone **Victorian Plumbing Group plc **(LON:VIC), the UK’s leading bathroom retailer^( 1), has announced its audited results for the financial year ended 30 September 2025. | ** ** | **2025** | 2024 | Change | | Revenue | **£310.0m** | £295.7m | 5% | | Gross profit^(2) | **£153.2m** | £147.8m | 4% | | Gross profit margin^(3) | **49.4%** | 50.0% | (0.6ppt) | | Adjusted EBITDA^(4) | **£31.8m** | £27.2m | 17% | | Adjusted EBITDA margin^(5) | **10%** | 9% | 1ppt | | Operating profit | **£18.0m** | £11.2m | 61% | | Adjusted PBT^(6) | **£21.8m** | £23.1m | (6%) | | Operating cash conversion^(7) | **77%** | 68% | 9ppt | | Free cash flow^(8) | **£24.0m** | £18.6m | 29% | | Net cash | **£17.7m** | £11.2m | 58% | | Adjusted diluted earnings per share^(9) | **5.4p** | 5.3p | 2% | | Ordinary full year dividend per share | **2.15p** | 1.61p | 34% | **Financial highlights** ·      Revenue growth of 5% to £310.0m (2024: £295.7m); outperforming the wider RMI market^(10) and reflecting ongoing market share gains. o  Order volume grew 6% to a record 1.1m orders (2024: 1.0m). Average order value(“ AOV”)^(11) decreased by 1% overall to £287 (2024: £290) but was up 3% in H2 2025 versus H1 2025. ·      Gross profit increased 4% to £153.2m (2024: £147.8m). o  Gross profit margin of 49.4% (2024: 50.0%), reflecting the introduction of Extended Producer Responsibility tax from 1 April 2025 and a change in product category and channel mix across the year. ·      Adjusted EBITDA up 17% to £31.8m (2024: £27.2m) with adjusted EBITDA margin progression to 10% (2024: 9%) driven by growth and more efficient marketing. ·      Operating profit increased 61% to £18.0m (2024: £11.2m) driven by the non- recurrence of 2024 exceptional items associated with the warehouse transformation and the acquisition of Victoria Plum. ·      Adjusted PBT of £21.8m decreased by 6% (2024: £23.1m) with adjusted PBT margin ^(12) reducing from 8% last year to 7% in 2025, reflective of the increased interest expense associated with the 20-year lease on the new distribution centre (“DC”). Adjusted diluted EPS of 5.4p, reflects a 2% increase. ·      Free cash flow of £24.0m up 29% (2024: £18.6m) and operating cash conversion of 77% (2024: 68%) reflective of strong working capital management, which is especially impressive during a period of operational transformation. ·      Strong closing net cash position of £17.7m (2024: £11.2m), with our robust debt free balance sheet. ·      Proposed final ordinary dividend of 1.45p, giving a total ordinary dividend of 2.15p for the year up 34% (2024: 1.61p). **Operational and strategic highlights** ·      Reinforced our position as the UK’s number one bathroom retailer, testament to the strength of our brand, extensive range and availability. ·      Warehouse transformation, completed in December 2024, has facilitated further progress in strategic growth areas of trade and expansion categories: o  Trade revenue grew 10% to £73.8m (2024: £67.3m), representing 24% of total revenue( 2024: 23%), helped by improvements in our delivery offering. o  Tiles and flooring revenue grew strongly by 42% to £17.6m (2024: £12.4m), representing 6% of total revenue (2024: 4%), aided by enhancements in our customer proposition. ·      Customers purchased proportionately more of our own brand products during the year; representing 81% of total revenue (2024: 80%). ·      Total marketing spend as a percentage of revenue reduced by 160 basis points to 27.3% (2024: 28.9%), and within this, online marketing spend as a percentage of revenue reduced by 190 basis points to 24.6% (2024: 26.5%): o  This marketing efficiency more than funded a continued strategic increase in brand marketing, driving an increase in our brand awareness score^(13) to 70% (2024: 66%). **MFI update** ·      We began taking orders via _mfi.co.uk_ during the summer, following a soft launch of the reimagined brand in July 2025. The response from customers has been very encouraging to date with an ‘Excellent’ Trustpilot rating and a score of 4.7 ^(14). The Group’s investment into MFI remains disciplined and in line with previous guidance. **Current trading and outlook** ·      The Group has had a positive start to the current financial year with continued revenue growth across all categories, and in line with market expectation. ·      MFI continues to build its product range ahead of a full launch in 2026 and whilst revenue is building, our expectation for MFI to incur an overall loss of between £2.6m and £3.4m in the current year remains unchanged. ·      We continue to focus on our long-term goals and are making good progress across our strategic growth areas. Underpinned by our market share gains in recent years, together with operational improvements, we are confident in the future financial prospects of the Group, notwithstanding that we continue to operate against a volatile consumer and economic backdrop. > **Mark Radcliffe, Founder and Chief Executive Officer of Victorian Plumbing, said:** > _“I am proud of the Group’s strong performance in 2025, in which we achieved record > revenues and continued to deliver on our strategic growth ambitions. We have further > strengthened our market share, reinforcing our position as the UK’s number one > bathroom retailer, while improving our marketing efficiency alongside our ever > increasing brand awareness._ > _“Our new state of the art distribution centre enables us to fulfil orders more > efficiently and supports our growth ambitions across our trade and tiles and flooring > expansion categories. We have continued our strategic investment in the Victorian > Plumbing brand and were pleased to soft launch the MFI brand and mfi.co.uk website > in July._ > _“As a highly cash generative business with a strong balance sheet, we continue > to invest for long-term profitable growth and to increase our returns to shareholders. > We are confident that Victorian Plumbing’s strategy will continue to deliver long- > term value to all stakeholders.”_ **Analyst presentation** A recording of management delivering the Final Results presentation will be published on the Investors section of the corporate website at 7:00am GMT, Wednesday, 3 December 2025. Mark Radcliffe (CEO) and Daniel Barton (CFO) will host a Q&A webinar for analysts at 8:15am GMT. All analysts or investors that wish to join the Q&A webinar, please contact FTI Consulting via VictorianPlumbing@fticonsulting.com. Share on: