Victoria Plum flush with cash after turnover boost in year

VICTORIA Plum has enjoyed a double digit lift in turnover with a near £1m swing in operating profit taking it back into the black.

Sales hit £70.9m for the online bathroom retailer, up 11.4 per cent from 2018’s £63.7 million, and directors are confident it will continue to improve, despite coronavirus.

It came in a year that saw ownership change, with Endless LLP buying out the Hessleheadquartered business, where more than 300 people are employed, in October last year.

Growth at Victoria Plum has been attributed to continued website development, investment in people skilled in sales and online marketing and the introduction of an “industry-leading design and installation service”.

In his strategic report to accompany the annual results, director Martin Hargreaves said: “The business has improved its sales growth and its profitability by continuing to invest in its customer offering, infrastructure and people.

“During a year when many of its competitors have continued to suffer financial losses, and in certain cases, closure, the directors believe that the continued improvements that have been made to the business have created the foundations for sustainable growth and further improvement to profitability.”

Bathstore was a high profile loss, with Homebase buying it out of administration.

Turning to operations since the accounting year end of February 28, 2020, Mr Hargreaves told how supply from China was interrupted by coronavirus, but that the ability to source products was not materially affected.

“Trading has recovered positively following the initial period of lockdown and the directors remain confident that the improving growth and profitability of the company will be sustained,” he said.

“The company has continued to see improved performance with double-digit year-on-year sales growth and profitability ahead of expectations.”

Last year had seen a £2.3m operating loss, or £700,000 before exceptional items.

That has come in as a £200,000 profit for 2019, though one-off costs directly attributed to the sale of the business represented £2.3m, with £1.6m registering in the previous financial year.