REG - Vic Plumbing - New UK Distribution Centre

Victorian PlumbingAnnouncement

03/01/2023 07:00

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RNS Number : 4084L  Victorian Plumbing Group plc  03 January 2023

3 January 2023

 

Victorian Plumbing Group plc

("Victorian Plumbing")

 

New UK Distribution Centre

 

Victorian Plumbing Group plc (AIM: VIC), the UK's leading online specialist
bathroom retailer, is pleased to announce that the Group has signed an
agreement to enter into a 20-year lease for a new, 544,000 square foot,
purpose-built distribution centre in Lancashire, located close to its existing
operations. The new distribution centre is scheduled to be completed in Autumn
2023 and will become fully operational after a period of dual running with
existing sites to ensure a smooth transition.

 

The new distribution centre will support the Group's strategic expansion and
will enable consolidation of a number of the Group's existing sites, although
some existing facilities will be retained to enable further adjacent category
expansion. The Group will invest in fitting out the new distribution centre
through the current and next financial year. This strategic investment will
provide the Group with further operational capacity to support its growth,
further strengthening its market leading position.

 

A c.£50m right of use asset together with a corresponding lease liability of
the same value will be recognised on the balance sheet, following completion
of the fit out. After the initial period of investment and operational
transition, cash outflows associated with this lease will be broadly neutral
when compared to current property costs.

 

Mark Radcliffe, Founder and Chief Executive Officer of Victorian Plumbing,
commented:

"This new facility represents another exciting milestone for the business,
providing us with capacity to manage growth in the long-term while further
establishing Victorian Plumbing's position as the No. 1 bathroom retailer in
the UK. I am also delighted that this new facility will create additional jobs
and further support our investment in the local area."

 

-ENDS-

 

 

For further information, please contact:

 

 Victorian Plumbing Group plc                                via FTI Consulting

 Mark Radcliffe, Chief Executive Officer                     +44 20 3727 1000

 Paul Meehan, Chief Financial Officer

 FTI Consulting (Financial PR)                               +44 20 3727 1000

 Alex Beagley, Eleanor Purdon, Harriet Jackson, Amy Goldup   VictorianPlumbing@fticonsulting.com

 Houlihan Lokey UK Ltd (Nominated Adviser)                   +44 20 7484 4040

 Sam Fuller, Tim Richardson

 Barclays Bank PLC (Joint Broker)                            +44 20 7623 2323

 Nicola Tennent, Stuart Muress

 Numis Securities Limited (Joint Broker)                     +44 20 7260 1000

 Luke Bordewich, Tom Jacob, Oliver Steele

 

About Victorian Plumbing Group

 

Victorian Plumbing is the UK's leading online specialist bathroom retailer,
offering a wide range of over 32,000 products to B2C and trade customers.
Victorian Plumbing offers its customers a one-stop shop solution for the
entire bathroom with more than 125 own and third-party brands across a wide
spectrum of price points.

 

The Group's product design and supply chain strengths are complemented by its
creative and brand-focused marketing strategy, which predominantly focuses on
online channels to drive significant and growing traffic to its website.

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