The Victorian Plumbing Group Board is recommending a full year final ordinary dividend of 1.09 pence per share (2023: 0.95 pence per share). This would represent dividend cover for 2024 of 3.3x (2023: 3.4x).
The Board is not recommending a special dividend (2023: £nil) as it preserves cash to finance the remainder of the fit-out of the warehouse transformation and the closure of Victoria Plum without the need for indebtedness, and to maintain the robustness of the balance sheet.
This results in a total cash distribution to shareholders of £5.2m (£1.5m interim paid and £3.5m final to be paid) (2023: total cash distribution to shareholders £4.6m), subject to shareholders' approval at the AGM on 25 February 2025. The dividends will be paid on 7 March 2025 to shareholders on the register of members at the close of business on 7 February 2025.
Other financial highlights include:
Revenue growth of 4% to £295.7m (2023: £285.1m); on a like-for-like ("LFL") basis, excluding the impact of the acquisition of AHK Designs Limited ("Victoria Plum") in May 2024, revenue decreased 1%, still outperforming the wider RMI market.
o Order volume grew by 10% to over one million orders for the first time and average order value ("AOV") decreased by 5% in the same period; LFL order volume growth of 3% was offset by an AOV decrease of 4%, as customers continue to buy an increasing proportion of their own brand products.
Strong gross profit growth of 10% to £147.8m (2023: £134.6m); LFL gross profit up 5%.
o Gross profit margin stable in H2 2024 at 50% (H1 2024: 50%), with an increase in 2024 full year gross profit margin to 50% (2023: 47%); LFL gross profit margin was also 50%, representing their highest gross margin since listing in 2021, underpinned by own brand sales.
o Profitability has improved year-on-year, driven by product mix shifting towards Victorian Plumbing own brand ranges as well as by reduced shipping costs and favourable foreign exchange movements.
Adjusted EBITDA of £27.2m up 14% versus the prior year (2023: £23.8m) with adjusted EBITDA margin progression to 9% in 2024 from 8% last year; on a LFL basis, adjusted EBITDA of £29.4m up on last year by 24%.
Operating profit of £11.2m decreased by 27% (2023: £15.3m) after exceptional costs of £8.2m associated with the warehouse transformation and the acquisition and closure of Victoria Plum.
Adjusted PBT of £23.1m grew by 14% versus the prior year (2023: £20.3m) with adjusted PBT margin12progression from 7% last year to 8% in 2024.
PBT was £9.0m (2023: £15.6m), after £11.0m of exceptional costs associated with the warehouse transformation and Victoria Plum investment, and £3.1m of share-based payments.
Free cash flow of £18.6m (2023: £16.1m) and operating cash conversion of 68% (2023: 68%).
Robust, debt-free balance sheet with closing cash position of £11.2m (2023: £46.4m), following investment in acquiring Victoria Plum for consideration of £22.2m and warehouse transformation spend of £26.4m.
Adjusted diluted EPS of 5.3p, reflecting a 13% increase.
