REG - Victorian Plumbing - Half-year Results
Today 07:00
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RNS Number : 8002E Victorian Plumbing Group PLC 19 May 2026
19 May 2026
Victorian Plumbing Group PLC
HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2026
Double digit growth in H1 with notable strength in tiles and flooring revenue
Victorian Plumbing Group plc (the "Group"), the UK's leading bathroom
retailer(1), announces its results for the six months ended 31 March 2026 ("H1
2026" or "the period"), highlighting significant progress made against its
strategic priorities.
GROUP H1 2026 H1 2025 Change
Revenue £168.8m £152.7m 10.5%
Gross profit(2) £83.9m £76.6m 9.5%
Gross profit margin(3) 49.7% 50.2% (0.5ppt)
Adjusted EBITDA(4) £15.4m £15.2m 1.3%
Adjusted EBITDA margin(5) 9.1% 10.0% (0.9ppt)
Operating profit £9.8m £6.8m 44.1%
Adjusted PBT(6) £9.4m £11.8m (20.3%)
Operating cash conversion(7) 84% 88% (4ppt)
Free cash flow(8) £12.9m £12.9m n.c.
Net cash £21.2m £10.9m 94.5%
Adjusted diluted EPS(9) 2.3p 2.8p (17.9%)
Interim ordinary dividend per share 0.74p 0.70p 5.7%
Financial highlights
· Retail revenue(10) (excluding MFI) growth of 9.2% to £166.7m (H1
2025: £152.7m); outperforming the wider RMI market(11) and reflecting ongoing
market share gains.
o Order volume grew 12% to a record 609,000 orders (H1 2025: 542,000).
o Average order value ("AOV")(12) decreased by 3% to £274 (H1 2025: £282),
as a result of an increase in tiles and flooring only orders.
· Gross profit (excluding MFI) increased 9.3% to £83.7m (H1 2025:
£76.6m).
o Gross profit margin (excluding MFI) maintained at 50.2% (H1 2025: 50.2%)
through disciplined cost management, despite the introduction of Extended
Producer Responsibility tax from 1 April 2025 and a change in product category
mix.
· Adjusted EBITDA (excluding MFI) increased 11.8% to £17.0m (H1 2025:
£15.2m) due to improved marketing efficiency.
o Including MFI, Group adjusted EBITDA maintained at £15.4m, (H1 2025:
£15.2m) with Group adjusted EBITDA margin decreasing to 9.1% (H1 2025: 10.0%)
due to the planned strategic investment in MFI.
· Operating profit increased 44.1% to £9.8m (H1 2025: £6.8m) primarily
reflecting the non-recurring 2025 exceptional items associated with the
warehouse transformation and the acquisition and closure of Victoria Plum.
· Adjusted PBT decreased 20.3% to £9.4m (H1 2025: £11.8m) with adjusted
PBT margin(13) of 5.6%, reflecting the planned investment in MFI and a full
six months of expense in H1 2026 vs. just three months in H1 2025 associated
with the 20-year lease on the new distribution centre ("DC"). Adjusted diluted
EPS was 2.3p (H1 2025: 2.8p).
· Free cash flow in line with prior year period at £12.9m (H1 2025:
£12.9m) and operating cash conversion of 84% (H1 2025: 88%) reflecting
continued strong working capital management, particularly during a period of
investment in tiles and flooring and MFI.
· Strong closing net cash position of £21.2m (H1 2025: £10.9m), with
a robust and debt free balance sheet (excluding lease liabilities).
· Interim ordinary dividend of 0.74p per share (H1 2025: 0.70p),
representing a 5.7% increase; in line with our capital allocation policy.
Operational and strategic highlights
· Reinforced our position as the UK's number one bathroom retailer,
which is testament to the strength of our brand, extensive range and
availability.
· Further progress in strategic growth areas:
o Tiles and flooring revenue increased 84% to £14.0m (H1 2025: £7.6m),
representing 8% of revenue (H1 2025: 5%), aided by infrastructure investment
and enhancements in our customer proposition.
o Trade revenue grew 8% to £39.0m (H1 2025: £36.1m), representing 23% of
revenue (H1 2025: 24%). Introduced third party trade credit option in February
2025 and further extended next day delivery cut-off to 17:00 in March 2026.
· Marketing spend reduced to 28.0% of Victorian Plumbing retail
revenue, a reduction of 80 basis points (H1 2025: 28.8%).
· Victorian Plumbing Brand awareness(14) improved to 73% (H1 2025:
72%).
· On 31 January 2026, Victorian Plumbing acquired Sovereign Transport
Services Limited ("Sovereign") for £2.3m net of cash acquired.
o Sovereign is a transportation services business based in Merseyside,
providing haulage services to the Group and to a small number of other
goods-based businesses in the North of England.
o This acquisition increases our control over customer fulfilment and
supports medium-term transportation efficiencies.
MFI delivering solid progress
· Following the successful soft launch of MFI in July 2025 with an initial
range of 600 SKUs, the product offering was expanded to over 5,500 SKUs across
multiple homeware categories during H1 2026. Continued expansion remains a key
strategic priority for management. Revenue of £0.5m reflects an acceleration
in performance, aligned with the broadened product range.
· The response from customers continues to be very encouraging with an
'Excellent' Trustpilot rating and a score of 4.7(15).
Current trading and outlook
· The Group has delivered mid-single digit revenue growth in the first
six weeks of H2 2026, despite the widely reported subdued consumer sentiment
driven by the Middle East conflict and its impact on discretionary spending.
· There have been no material cost increases to date, however, the Group
remains vigilant to potential inflationary pressure, particularly from imports
from China and energy prices.
· Despite factoring in a more subdued consumer environment for H2 2026,
the Group anticipates full year revenue and adjusted PBT in line with current
market expectations(16).
Stephnie Judge, Chief Executive Officer, said:
"In delivering my first set of interim results as CEO, I am pleased to report
a strong first half performance, with the Group achieving double digit revenue
growth and continuing to deliver on its strategic growth ambitions. We have
further strengthened our market share, reinforced our position as the UK's
number one bathroom retailer, improved our marketing efficiency and grown
brand awareness.
"Our state of the art distribution centre is enabling more efficient
fulfilment and supports our growth ambitions across expansion categories,
including trade, tiles and flooring. The progress made in MFI is also very
encouraging.
"As a highly cash generative business with a strong balance sheet, we remain
focussed on investing for long-term profitable growth and on increasing
returns to shareholders. 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.
Finally, on behalf of the Board, I would like to thank every one of our team
members, recognising that this strong first half performance is testament to
their continued hard work and dedication"
Analyst presentation
A presentation for analysts will be held at 08:30am BST, Tuesday 19 May 2026
at FTI Consulting, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD. For
those unable to attend in person, there will be a conference call facility,
details of which can be obtained from FTI Consulting via
VictorianPlumbing@fticonsulting.com
(mailto:VictorianPlumbing@fticonsulting.com) .
For further information, please contact:
Victorian Plumbing Group plc via FTI Consulting
Stephnie Judge, Chief Executive Officer +44 20 3727 1000
Daniel Barton, Chief Financial Officer
FTI Consulting (Financial PR) +44 20 3727 1000
Alex Beagley, Harriet Jackson, Amy Goldup, Harleena Chana VictorianPlumbing@fticonsulting.com
Houlihan Lokey UK Ltd (Nominated Adviser) +44 20 7839 3355
Sam Fuller, Tim Richardson
Barclays Bank PLC (Joint Broker) +44 20 7623 2323
Nicola Tennent
Canaccord Genuity Limited (Joint Broker) +44 20 7597 5970
Bobbie Hilliam, Elizabeth Halley-Stott
About us
Victorian Plumbing is the UK's leading bathroom retailer, offering an
unrivalled high-quality product range and excellent stock availability to B2C
and trade customers.
Victorian Plumbing offers its customers a one-stop shop solution for the
entire bathroom with own and third party brands across a wide spectrum of
price points. Victorian Plumbing product design and supply chain strengths are
complemented by its creative and brand-focused marketing strategy to drive
significant and growing traffic to its platforms.
The Group also includes MFI, an online-only UK retailer launched in 2025,
offering a growing range of stylish homewares and furniture.
Headquartered in the North West, Victorian Plumbing and MFI employ staff
across several locations in the UK.
Cautionary statement
This announcement of half year results does not constitute or form part of and
should not be construed as an invitation to underwrite, subscribe for, or
otherwise acquire or dispose of any Victorian Plumbing Group plc (the
"Company") shares or other securities in any jurisdiction nor is it an
inducement to enter into investment activity nor should it form the basis of
or be relied on in connection with any contract or commitment or investment
decision whatsoever. It does not constitute a recommendation regarding any
securities. Past performance, including the price at which the Company's
securities have been bought or sold in the past, is no guide to future
performance and persons needing advice should consult an independent financial
advisor. This announcement may include statements that are, or may be deemed
to be, "forward-looking statements" (including words such as "believe",
"expect", "estimate", "intend", "anticipate" and words of similar meaning). By
their nature, forward-looking statements involve risk and uncertainty since
they relate to future events and circumstances, and actual results may, and
often do, differ materially from any forward-looking statements. Any
forward-looking statements in this announcement reflect management's view with
respect to future events as at the date of this announcement. Save as required
by applicable law, the Company undertakes no obligation to publicly revise any
forward-looking statements in this announcement, whether following any change
in its expectations or to reflect events or circumstances after the date of
this announcement.
Summary of other KPIs
Units H1 2026 H1 2025 Change
Victorian Plumbing:
Visitors(17) '000 14,533 13,460 8%
Total orders(18) '000 609 542 12%
Average order value £ 274 282 (3%)
Number of Trustpilot reviews Number 430,000 Unmeasured n/a
Trustpilot score Score / 5.0 4.5 4.3 5%
Items per basket Number 3.5 3.3 6%
Trade revenue as a % of retail revenue % 23% 24% (1ppt)
Tiles and flooring revenue as a % of retail revenue % 8% 5% 3ppt
Own brand / third party revenue ratio % 83% / 17% 81% / 19% 2ppt / (2ppt)
Marketing spend as a % of retail revenue % 28.0% 28.8% (0.8ppt)
Online marketing spend as a % of retail revenue % 25.0% 25.3% (0.3ppt)
Brand spend as a % of retail revenue % 3.0% 3.5% (0.5ppt)
People costs as a % of retail revenue % 8.4% 8.2% 0.2ppt
Property & other overheads % 3.4% 3.3% 0.1ppt
Underlying costs % 39.6% 40.2% (0.6ppt)
Average FTE Number 722 710 2%
MFI:
Visitors '000 545 n/a n/a
Number of Trustpilot reviews Number 550 n/a n/a
Trustpilot score Score / 5.0 4.7 n/a n/a
Average FTE Number 19 n/a n/a
1. Mintel, Bathroom Furniture - UK - 2025.
2. Gross profit is defined as revenue less cost of sales. Cost of
sales includes all direct costs incurred in purchasing products for resale
along with packaging, distribution and transaction costs (which include mark
to market movements on forward currency contractual arrangements in line with
the Group's treasury policy).
3. Gross profit margin is defined as gross profit as a
percentage of revenue.
4. Adjusted earnings before interest, tax, depreciation and
amortisation ("EBITDA") is defined as operating profit before depreciation,
amortisation, exceptional items and IFRS 2 share-based payments (including
associated National Insurance ("NI")).
5. Adjusted EBITDA margin is defined as adjusted EBITDA as a
percentage of revenue.
6. Adjusted profit before tax ("PBT") is defined as adjusted
EBITDA less finance costs/(income), depreciation and amortisation.
7. Operating cash conversion is free cash flow as a
percentage of adjusted EBITDA from continuing operations.
8. Free cash flow is cash generated from operating activities before
cashflows from discontinued operations, exceptional items and taxation, less
routine capital expenditure and cash flows relating to routine leases.
9. Adjusted diluted earnings per share ("EPS") is defined as total
adjusted profit after tax for the period divided by total issued share
capital. Total adjusted profit after tax for the period is defined as profit
for the period from continuing operations before exceptional items and IFRS 2
share-based payments and after adjusting for the tax impact of those items.
10. Retail revenue is defined as revenue less haulage revenue.
11. Barclays, UK Consumer Spend Report.
12. Average order value ("AOV") is defined as revenue divided by
total orders in the period.
13. Adjusted PBT margin is defined as adjusted PBT as a
percentage of revenue.
14. Victorian Plumbing brand tracking - February 2026 vs.
February 2025.
15. The average Trustpilot score is defined as the monthly
average of all Trustpilot scores during the period.
16. Company compiled consensus average of analysts' expectations
for FY26 revenue is £329.5m and adjusted PBT is £21.8m.
17. Visitors is defined as the number of unique individuals that
have accessed the site in the period.
18. Total orders is defined as the total number of orders
dispatched to customers in the period.
19. State of the Industry (2022), Euromonitor International.
20. ONS Retail Sales Index.
21. The Research Insights, UK Homeware Market, 2019 - 2035.
22. Google Analytics GA4 - H1 2026 vs. H1 2025.
CEO statement
Overview
In delivering my first set of results as CEO, I am pleased to report that
during the first half of the current financial year the Group continued to
perform ahead of the wider RMI market, delivering strong growth in
profitability in Victorian Plumbing, which has helped enable the planned
investment in MFI as we focus on establishing an effective foothold in the UK
homewares market. The consumer, whether directly or via the trade channel,
continues to choose Victorian Plumbing as their bathroom and tiles retailer of
choice because of our increasing brand awareness, fair pricing, unrivalled
high-quality product range and excellent stock availability.
Summary of operating performance
Revenue for the period grew by 10.5% to £168.8m (H1 2025: £152.7m),
outperforming the wider RMI market and primarily reflecting a 12% increase in
total orders and a 3% reduction in AOV at Victorian Plumbing. Adjusted EBITDA
increased by 1.3% to £15.4m (H1 2025: £15.2m) and adjusted EBITDA margin
decreased to 9.1% (H1 2025: 10.0%).
Growth in Victorian Plumbing own brand products to 83% of revenue (H1 2025:
81%), together with an increase in items per basket to 3.5 (H1 2025: 3.3),
reflects the impressive growth in tiles and flooring. Tiles and flooring gross
margin remains slightly below that of the overall Group as we build scale and
invest in pricing to support market penetration and drive volume growth. Own
brand sales in core bathroom products have stabilised at around 80%, as
anticipated.
Online marketing continues to be more efficient and aids strategic investment
in the brand which, in turn, drives even more marketing efficiency. This
investment in brand reflects the considered placement of advertising and
sports sponsorship designed to drive profitable growth following the closure
of Victoria Plum in November 2024, and to capitalise on the increased capacity
unlocked by the completion of our warehouse transformation programme in
December 2024.
This performance once again proves the resilience of our business model and
our competitive advantage, irrespective of consumer sentiment, underpinning
our confidence in delivering short, medium and long-term profitable growth.
Continued progress against our strategic focus areas
We continue to leverage our market and brand position, as well as our strong
balance sheet, to deliver on our clearly defined strategic objectives, which
focus on core B2C, expansion categories and trade.
Our core focus is retailing bathroom and tile products and accessories to UK
consumers through our market leading online platform. As previously
highlighted, the consumer's transition to online purchasing of bathroom
products and accessories is far from reaching maturity and we are particularly
well placed to capitalise on these structural tailwinds, in combination with
recent technological advancements, to continue to gain market share from
traditional physical retailers, omnichannel players and other online
competitors.
In line with our medium-term strategy, we are considering opportunities for
focused international expansion. We are already delivering an increasing
amount of order volume to the Republic of Ireland through our UK domain, which
could facilitate some focused and disciplined investment to better serve this
growth market in the future. We also remain open to vertical integration
opportunities in our supply chain as well as potential M&A in expansion
categories.
In addition to our market leading position in the bathroom product and
accessories market, and our growing position in the tiles market, we are
utilising our proprietary platform and knowledge to expand into the homewares
market through investment in our MFI brand, which is making encouraging
progress.
During H1 2026, our trade revenue grew 8% to £39.0m (H1 2025: £36.1m),
representing 23% of Group revenue (H1 2025: 24%). This remains below the
estimated 50:50 split seen across the wider market(19).
Tiles and flooring revenue has been driven predominantly through the consumer
channel, which is typical during an early period of rapid growth. Over time,
we expect the mix to change with a greater proportion of this revenue coming
through our trade channel.
To date, our primary focus has been on smaller, independent traders. However,
we see a significant opportunity to gain market share by broadening our
marketing approach, including targeted radio advertising, expanding our trade
product range, and continuing to enhance our platform to better meet broader
trade customer needs. For example, in March 2026 we extended the next-day
delivery cut-off from 16:00 to 17:00 and have already received encouraging
feedback as a result.
Ongoing strategic investment in sports sponsorship has further strengthened
brand awareness among tradespeople. Combined with investment in our dedicated
trade team, this positions us well to attract more trade customers and drive
continued growth in trade revenue.
Strengthening our competitive position
We are the UK's largest bathroom retailer, and we have continued to strengthen
our competitive moat by improving the customer journey through innovative
technology enhancements and category expansion.
Our investment in marketing continues to increase our brand awareness and
support customer acquisition, as consumers respond positively to the bold and
distinctive Victorian Plumbing brand. In addition to our renewed partnership
with League One team Bolton Wanderers Football Club, we have agreed a new
partnership with Championship team Bristol City Football Club as its title and
front of shirt sponsor for two years starting in the 2026/27 season. We have
also renewed our partnership with the World Snooker Tour as the headline
sponsor of the Victorian Plumbing UK Championship, which attracted over 12
million BBC TV viewers in 2025.
Our creative offline content is complemented by our investment in increasingly
targeted digital performance-based marketing. This dynamic marketing strategy,
together with our bold marketing campaign 'Boss Your Bathroom', has further
improved our already strong brand awareness score to 73% (H1 2025: 72%).
As an online retailer, we continue to benefit from the ongoing structural
shift in consumer buying behaviour from offline to online. Online sales
represented c.27% of total retail sales in 2025(20), and we expect our
addressable market to grow even further in the coming years.
Expanded products for the home
Our wide selection of products across a variety of price points ensures that
we are the true one-stop solution for any bathroom-related purchases and the
introduction of selective new product ranges is also taking our shoppers into
other rooms in the home. We have increased the number of available products to
more than 43,000 from over 151 brands, ensuring there is something available,
affordable and suitable for everyone.
Our extensive own brand offerings, which are exclusively available on the
Victorian Plumbing and MFI websites (including the newly launched MFI Editions
collection of luxury cushions, which are trading well) are complemented with
well-known third party brands. This unique proposition, combining our own
brands alongside established third party brand relationships, helps to ensure
that profitability is maintained, irrespective of wider market conditions, and
is testament to the resilience of our business model.
A bold strategic expansion into a high-value adjacency
Aligning with our long-term growth strategy, we executed a soft launch of the
reimagined MFI homewares e-commerce platform in the UK in July 2025. MFI is
positioned to deliver stylish, design-led homewares tailored to the modern
online consumer. The brand targets a broader demographic, including both
homeowners and renters, thereby expanding the Group's addressable market. This
investment marks our entry into the £21 billion homewares category(21) - a
significant adjacency to our core business - enabling us to further diversify
revenue streams and mitigate concentration risk.
The MFI launch leverages Victorian Plumbing's proprietary technology stack,
e-commerce expertise, purchasing scale, and logistics infrastructure, ensuring
operational efficiency and accelerated market entry. The revitalised MFI brand
is already demonstrating conversion rates in line with Group benchmarks,
validating our strategic approach.
Operating as a digital-only business, MFI is supported by a dedicated
leadership team and warehousing capabilities. The product offering includes a
curated selection of textiles, home décor, and freestanding furniture, with a
tiered pricing strategy designed to appeal to a wide range of aspirational
consumer segments.
The MFI leadership team is focused on product expansion in this start-up phase
of the business and has increased the SKU count from 600 at launch to 5,500 at
the period end. We are particularly proud of our achievements in the bedding
and textiles category. Furniture, in both garden and home, also continues to
improve and we anticipate more progress in this category by the end of the
financial year.
Bolt on acquisition of Sovereign
On 31 January 2026, Victorian Plumbing acquired Sovereign for £2.3m net of
cash acquired. Sovereign is a transportation services business based in
Merseyside, providing haulage services to the Group and to a small number of
other goods-based businesses in the North of England. The acquisition provides
the Group with increased control over its customer fulfilment and an
opportunity to improve other areas of transportation over the medium-term.
Agile supply chain
Our exposure to shipping and foreign exchange costs did not change materially
in the period but there remains a significant level of unpredictability in
these markets. We are mindful of some inflationary pressure on factory gate
prices in China, but we continue to work effectively with our suppliers and
utilise our scale to achieve good outcomes for all parties. Third party
delivery cost prices increased as a result of suppliers passing on
inflationary cost pressures from the increase in National Living Wage and
National Insurance Contributions in April 2025 - though the impact of this was
mitigated somewhat by the acquisition of Sovereign.
Despite the challenging macroeconomic conditions, by leveraging our scale and
the positive working relationships we have with all of our shipping partners
and long-standing global suppliers, we have largely avoided short-term supply
chain.
As we continue the expansion of our categories, we are working closely with
our manufacturing partners, many of whom are based in Southern Europe to
ensure margins are closely aligned with those in the existing Group. The Group
does not source large quantities of product from the Middle East.
Seamless customer journey
We are extremely proud that we continue to be rated 'Excellent' by Trustpilot
and have improved our average score in the period to 4.5 out of 5.0 (H1 2025:
4.3).
We received a record number of Trustpilot reviews during the period and have
surpassed 430,000 reviews in total - the highest total of any specialist
bathroom retailer on the site. The 'Excellent' rating we have across this
volume of reviews is testament to the dedicated work of our colleagues.
We are also delighted that our newly launched MFI brand, is rated 'Excellent'
by Trustpilot with an average score in the period of 4.7, believing that this
demonstrates how effectively we are leveraging our existing customer services
know-how to deliver the best customer experience.
Development of our technology platforms
Our Technology Development and Infrastructure teams work hard to facilitate
the ongoing development of our bespoke, best in class technology platforms and
deliver continual improvement to the website features. Two areas of focus for
the team in the period have been:
1. Artificial intelligence ("AI")
· Introduction of 'Ask Vic' in March 2026 - an agentic AI feature that
delivers instant and personalised chat support to enhance the customer
experience on site;
· Improved efficiency of product inventory management;
· Embedding AI into the development of our Customer Order Management
System to increase the speed of positive customer resolutions; and
· In-app development improvement to enable us to more quickly test design
and user experience and improve productivity.
2. Robotics
· Installation of an automated pallet wrapper - driving efficiency
and improved inventory management;
· Commissioning of Automated Guided Vehicles ("AGVs") - driving
efficiency and improved safety in the warehouse;
· Smart conveyor technology - enabling faster, more accurate order
consolidation; and
· Shuttle racking - improving the stock holding density at no loss
to efficiency.
User conversion has increased from 3.7ppt in H1 2025 to 4.0ppt in H1 2026(22).
Overall, 2% of Victorian Plumbing revenue was generated through the app in the
period (H1 2025: 2%).
The MFI website and supporting systems were also developed by our in-house
team, taking advantage of the knowledge and expertise they have developed at
Victorian Plumbing.
Distribution centre
Since the DC became fully operational in December 2024, we have been
increasingly improving the productivity in our workforce. Revenue per average
FTE on a rolling twelve months basis has improved to £449,000 in the period
(H1 2025: £428,000). This has helped to ensure that the 2% average FTE
increase in Victorian Plumbing in the period was proportionately less than the
7% volume growth.
ESG
Taking responsibility is one of our core values, and we are clear that every
one of us has a role to play in making a positive difference to the
environment and the communities in which we operate. Our ESG strategy is
centred around three focus areas: environmental sustainability, diversity
& inclusion, and governance & ethics.
Our chosen charity partner is Bowel Cancel UK, the UK's leading bowel cancer
charity that is working to save lives and improve the quality of life of
everyone affected by bowel cancer.
Our electricity contracts remain 100% renewable and we have installed
photovoltaic panels on the DC to ensure we are maximising the renewable energy
source opportunities available to us. We continue to work with suppliers to
reduce the levels of plastic packaging on our products and, more recently,
have trialled methods that also use less wood in our packaging.
Our people
We continue to be impressed by the commitment and capability of our people;
collectively, their innovation and hard work have been the driving force
behind the growth and success experienced by the Group over recent years. We
are proud of the values-led, principles-driven culture that is deep-rooted
throughout the Group, and it is this culture that underpins our ability to
adapt and respond positively to challenges.
Current trading and outlook
The Group has delivered mid-single digit revenue growth in the first six weeks
of H2 2026, despite the widely reported subdued consumer sentiment driven by
the Middle East conflict and its impact on discretionary spending.
There have been no material cost increases to date, however, the Group remains
vigilant to potential inflationary pressure, particularly from imports from
China and energy prices.
Despite factoring in a more subdued consumer environment for H2 2026, the
Group anticipates full year revenue and adjusted PBT in line with current
market expectations.
Financial review
Revenue
Reported revenue grew by 10.5% to £168.8m in the period, from £152.7m in H1
2025.
Victorian Plumbing
Victorian Plumbing (excluding haulage) revenue grew by 9.2% to £166.7m in the
period, from £152.7m in H1 2025.
Order volume grew by 12% to 609,000, with AOV declining by 3% to £274 in the
same period. The average number of items per basket increased by 6% to 3.5 in
H1 2026 (H1 2025: 3.3), driven by growth in tiles and flooring. Order growth
reflects continued market share gain in a subdued market and our unrelenting
approach to online marketing, as well as improved brand awareness and an
increase in tiles and flooring only orders.
The reduction in AOV is driven by an increase in tiles and flooring only
orders. Unlike many competitors - who operate higher-cost models or rely on
approaches that can compromise customer service, such as long lead times and
drop-shipping - the Group has not passed on any price increases this year.
This reflects our commitment to supporting customers during a difficult and
uncertain period, while ensuring our pricing remains competitive.
Trade revenue, driven by higher order volumes, grew by 8% to £39.0m (H1 2025:
£36.1m) and represents 23% of total revenue (H1 2025: 24%). Consumer revenue
(excluding MFI) increased by 10% to £127.7m (H1 2025: £116.6m) - which is
the fastest rate of growth delivered in five years and represents 77% of total
revenue (H1 2025: 76%), driven by order growth in tiles and flooring. Tiles
and flooring revenue continued to grow at a pace, increasing 84% to £14.0m
(H1 2025: £7.6m).
Haulage revenue in the period of £1.6m relates to transportation services
provided by the recently acquired Sovereign business to third party companies
based in the North of England.
MFI
The MFI SKU count has improved from a narrow range of 600 at launch in July
2025 to 5,500 at the end of March 2026 across multiple homeware categories.
Product range expansion remains the primary focus for management. Revenue of
£0.5m reflects an acceleration in the period since launch to match the
product expansion on site and is in line with our expectation. AOV and items
per basket is lower than the wider group but is increasing in line with the
product expansion, as anticipated.
More detailed financial analysis will be provided for MFI at the full year
preliminary announcement.
Gross profit
Reported cost of sales increased 11.6% to £84.9m in the period, from £76.1m
in H1 2025. Reported gross profit increased 9.5% to £83.9m in the period,
from £76.6m in H1 2025. Reported gross margin decreased by 0.5ppt to 49.7% in
the period, from 50.2% in H1 2025.
Victorian Plumbing
Cost of sales increased by 11.2% to £84.6m (H1 2025: £76.1m) in line with
order volume growth. Gross profit for the period increased by 9.3% to £83.7m
(H1 2025: £76.6m) in line with revenue growth. Gross profit margin reduced by
50 basis points to 49.7% (H1 2025: 50.2%) reflecting the introduction of
Extended Producer Responsibility tax effective from 1 April 2025 and a change
in product category mix across the year. Gross margin from own brand products
was stable at 54% (H1 2025: 54%), and gross margin from third party products
reduced to 29% (H1 2025: 33%).
We are proud to partner with some of the industry's leading names which,
alongside our own brand offering, allows us to provide consumers with a wide
range of price points. This is a compelling component of our unique ungeared
operating model, protecting shareholder returns and building the foundation
for future growth.
MFI
Gross profit for the period was £0.2m. Gross margin sits between 30% and 40%
currently as most product is UK sourced.
Underlying costs
Reported underlying costs increased by 11.6% to £68.5m (H1 2025: £61.4m) and
represents 41% of revenue (H1 2025: 40%).
Victorian Plumbing
H1 2026 H1 2025 Change
£m £m
Marketing - online 41.6 38.6 8%
Marketing - brand 5.0 5.3 (6%)
Total marketing 46.6 43.9 6%
People costs (excluding share-based payments) 14.4 12.5 15%
Property & other overheads 5.7 5.0 14%
Underlying costs 66.7 61.4 9%
Growing the Victorian Plumbing brand awareness and increasing traffic to site
remains a focus for the Group and we have seen a further improvement in our
brand awareness score during the year to 73% (H1 2025: 72%). Total marketing
costs increased by 6% to £46.6m (H1 2025: £43.9m) and represent 28.0% (H1
2025: 28.8%) of total revenue. Online marketing costs increased by 8% to
£41.6m (H1 2025: £38.6m) representing 25.0% (H1 2025: 25.3%) of total
revenue, which we consider a good performance and reflects our brand strength
improvement and leading in-house marketing expertise. Investment in brand
spend, including our title sponsorship of the UK Snooker Championship and TV
and outdoor advertising, decreased slightly to £5.0m (H1 2025: £5.3m),
representing 3.0% of total revenue (H1 2025: 3.5%).
People costs, excluding share-based payments but including costs relating to
agency staff, increased 15% to £14.4m (H1 2025: £12.5m). Overall average FTE
increased 2% to 722 (H1 2025: 710). This reflects well-documented inflationary
cost pressures offset, in large part, by productivity improvements within our
new warehouse infrastructure. Revenue per average FTE was £449,000 (H1 2025:
£428,000).
Property and other overhead costs increased by 14% to £5.7m (H1 2025:
£5.0m), driven, inter alia, by rental cost from Sovereign.
MFI
Underlying costs of £1.8m relate to people, property, online marketing and
brand product imagery costs.
Depreciation and amortisation
The Group continues to invest in its platform and the development of bespoke
in-house systems (including MFI), with £1.9m of intangible assets capitalised
during the period (H1 2025: £1.9m). Depreciation and amortisation increased
by £1.9m to £4.6m (H1 2025: £2.7m) to reflect the additional expense of the
fit-out of the new DC together with the associated right-of-use expense.
Net finance costs
Finance income of £0.6m during the period compares to a finance income of
£0.3m for H1 2025 due to more available cash being placed on deposit to take
advantage of deposit rates. Finance costs (excluding exceptional items)
increased to £2.0m (H1 2025: £1.0m) to reflect the additional interest on
the 20-year lease associated with the new warehouse.
Share-based payments
The Group incurred share-based payment charges (including associated national
insurance) of £1.0m (H1 2025: £1.0m). Share-based payment charges for the
period include £0.2m (H1 2025: £0.5m) for schemes relating to the Group's
IPO in June 2021, along with £0.8m (H1 2025: £0.4m) for ongoing schemes put
in place post IPO.
Profit
Operating profit and adjusted EBITDA
The Executive Leadership Team ("ELT") measures the overall performance of the
Group by reference to adjusted EBITDA, a non-GAAP measure. This adjusted
profit measure is applied by the ELT to understand earnings trends and is
considered an additional, useful measure under which to assess the Group's
true operating performance.
H1 2026 H1 2025
£m £m
Operating profit 9.8 6.8
Amortisation of intangibles 1.6 1.0
Depreciation of property, plant & equipment 1.1 0.5
Depreciation of right-of-use assets 1.9 1.7
Depreciation capitalised during the fit-out of the DC - (0.5)
Share-based payments (including NI) 1.0 1.0
15.4 10.5
Double running and non-recurring administrative expenses - 2.1
Closure costs: Victoria Plum - 2.4
Professional fees associated with business combinations - 0.2
- 4.7
Adjusted EBITDA 15.4 15.2
Adjusted EBITDA increased by 1.3% to £15.4m (H1 2025: £15.2m), and adjusted
EBITDA margin decreased by 0.9ppt to 9.1% (H1 2025: 10.0%).
Adjusted EBITDA to adjusted PBT
The ELT also measures the overall performance of the Group by reference to
adjusted PBT, a non-GAAP measure. This adjusted profit measure is applied by
the ELT as an alternative profitability measure, which incorporates the
capital investment and the financing structure of the Group.
H1 2026 H1 2025
£m £m
Adjusted EBITDA 15.4 15.2
Amortisation of intangibles (1.6) (1.0)
Depreciation of property, plant & equipment (1.1) 0.5
Depreciation of right-of-use assets (1.9) (1.7)
Depreciation capitalised during the fit-out of the DC - (0.5)
Finance income 0.6 0.3
Finance costs (excluding exceptional items) (2.0) (1.0)
Adjusted PBT 9.4 11.8
Adjusted PBT decreased by 20.3% to £9.4m (H1 2025: £11.8m), and adjusted PBT
margin decreased by 2ppt to 5.6% (H1 2025: 7.7%).
Segment analysis:
Victorian Plumbing £m
MFI H1 2026 H1 2025
£m £m £m
Retail 166.7 0.5 167.2 152.7
Haulage 1.6 - 1.6 -
Revenue 168.3 0.5 168.8 152.7
Cost of sales (84.6) (0.3) (84.9) (76.1)
Gross profit 83.7 0.2 83.9 76.6
Administrative expenses (66.7) (1.8) (68.5) (61.4)
Adjusted EBITDA 17.0 (1.6) 15.4 15.2
Adjusted EBITDA margin % 10.1% n/a 9.1% 10.0%
Net finance costs (1.3) (0.1) (1.4) (0.7)
Amortisation and depreciation (4.5) (0.1) (4.6) (2.7)
Adjusted profit before tax 11.2 (1.8) 9.4 11.8
Adjusted profit before tax margin % 6.7% n/a 5.6% 7.7%
Taxation
The Group tax charge of £1.9m (H1 2025: £1.3m) represents an effective tax
rate of 23% (H1 2025: 24%) which is lower than the standard rate of UK tax of
25% due to tax losses being recognised in the year. The adjusted effective tax
rate is 22% (H1 2025: 23%).
Earnings per share
Diluted EPS was 2.0 pence (H1 2025: 1.8 pence). Adjusted diluted EPS was 2.3
pence (H1 2025: 2.8 pence).
Cash flow and net cash
The Group continues to achieve strong cash generation with free cash flow of
£12.9m (H1 2025: £12.9m), resulting in strong operating cash conversion of
84% (H1 2025: 88%).
Continuing operations H1 2026 H1 2025
£m £m
Adjusted EBITDA 15.4 14.6
Movement in working capital 2.2 3.6
Repayment of lease liabilities (2.2) (1.3)
VAT not yet recovered on exceptional items - (1.6)
Capital expenditure (excluding exceptional items) (2.5) (2.4)
Free cash flow 12.9 12.9
Operating cash conversion 84% 88%
Changes in working capital resulted in a cash inflow of £2.2m (H1 2025:
£3.6m) due to good stock management, despite the investment in tiles and
flooring and MFI. Given the nature of our stock, we continue to incur low
levels of obsolescence and our proprietary knowledge built over two decades of
trading benefits us in low levels of returns and damages.
Capital expenditure (excluding exceptional items) of £2.5m (H1 2025: £2.4m)
included £1.7m (H1 2025: £1.7m) of capitalised salaries relating to
development of the Group's bespoke software solutions.
At the end of the period, the Group had net cash (excluding IFRS 16 related
liabilities) of £21.2m (H1 2025: £10.9m).
On 18 December 2024, the Group entered into a three-year revolving credit
facility ("RCF") with HSBC. The RCF has total commitments of £30m. The Group
has provided a cross-guarantee by way of a debenture dated 7 June 2021 as
security for the facility. The RCF remains undrawn at the date of this report.
Acquisition of Sovereign on 31 January 2026
On 31 January 2026, Victorian Plumbing acquired the entire issued share
capital of Sovereign Transport Services Limited and Sovereign Commercials
Limited (together "Sovereign") for consideration of £2.3m (net of cash
acquired). Sovereign is a transportation services business based
in Merseyside, providing haulage services to the Group and to a small number
of other goods-based businesses in the North of England. The acquisition
provides the Group with increased control over customer fulfilment and an
opportunity to improve other areas of transportation over the medium-term.
The acquisition has been funded almost entirely from the Group's existing cash
reserves, with 65,000 new ordinary shares of £0.001 each in the Company
allotted and issued to the seller in part satisfaction of the purchase price
payable. Acquisition related fees are expected to be c.£0.4m.
Dividend
Victorian Plumbing has a robust balance sheet, generates significant operating
cashflows and the underlying priority is to reinvest into the business and
drive further profitable growth. The Board aims to maintain a dividend cover
ratio of 2.25x - 3.00x. This recognises that most growth opportunities do not
require significant capital, and reflects confidence in the Group's ongoing
strength, future growth prospects and cash generation.
The Board has declared an interim dividend of 0.74 pence per share (H1 2025:
0.70 pence per share), which represents a total cash distribution to
shareholders of £2.4m (H1 2025: £2.3m). The dividend will be paid on 12
August 2026 to shareholders on the register of members at the close of
business on 17 July 2026.
Daniel Barton
Chief Financial Officer
19 May 2026
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 31 MARCH 2026
Note Six months to 31 March Continuing operations Discontinued operations Six months to 31 March
2026 £m £m 2025
£m £m
Revenue 4 168.8 148.8 3.9 152.7
Cost of sales (84.9) (73.7) (2.4) (76.1)
Gross profit 83.9 75.1 1.5 76.6
Administrative expenses 5 (74.1) (66.5) (3.3) (69.8)
Operating profit / (loss) 9.8 8.6 (1.8) 6.8
Finance income 0.6 0.3 - 0.3
Finance costs (2.0) (1.7) - (1.7)
Profit / (loss) before tax 8.4 7.2 (1.8) 5.4
Income tax expense 6 (1.9) (1.3) - (1.3)
Profit / (loss) for the period 6.5 5.9 (1.8) 4.1
Loss from discontinued operations - - (1.8) (1.8)
Profit from continuing operations 6.5 5.9 - 5.9
Basic earnings per share (pence) 8 2.1 1.9
Diluted earnings per share (pence) 8 2.0 1.8
There are no items to be recognised in the statement of comprehensive income
in the current period or prior period, and hence the Group has not presented a
separate statement of other comprehensive income.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 MARCH 2026
Note 31 March 2026 31 March 2025 30 September 2025
£m £m £m
Assets
Non-current assets
Goodwill 10 22.2 18.8 18.8
Intangible assets 11 5.4 5.3 4.7
Property, plant and equipment 12 26.6 27.7 26.8
Right-of-use assets 13 47.9 48.0 47.3
Derivative financial instruments 0.4 - -
102.5 99.8 97.6
Current assets
Inventories 50.8 43.4 45.6
Trade and other receivables 14 11.3 8.8 7.5
Cash and cash equivalents 21.2 10.9 17.7
83.3 63.1 70.8
Total assets 185.8 162.9 168.4
Equity and liabilities
Equity attributable to the owners of the Company
Share capital 18 0.3 0.3 0.3
Share premium 11.2 11.2 11.2
Capital redemption reserve 0.1 0.1 0.1
Capital reorganisation reserve (320.6) (320.6) (320.6)
Retained earnings 372.5 362.7 369.6
Total equity 63.5 53.7 60.6
Liabilities
Non-current liabilities
Lease liabilities 16 48.0 47.3 47.5
Provisions 3.5 1.9 2.0
Deferred tax liability 2.7 2.8 1.6
54.2 52.0 51.1
Current liabilities
Trade and other payables 15 56.1 46.5 45.0
Contract liabilities 6.7 7.0 6.8
Lease liabilities 16 4.6 2.9 3.6
Provisions 0.4 0.2 0.2
Corporation tax 0.3 0.6 1.1
68.1 57.2 56.7
Total liabilities 122.3 109.2 107.8
Total equity and liabilities 185.8 162.9 168.4
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 MARCH 2026
Share capital Share premium Capital redemption reserve Capital reorganisation reserve Retained earnings Total equity
£m £m £m £m £m £m
Balance at 1 October 0.3 11.2 0.1 (320.6) 361.3 52.3
2024
Comprehensive income
Profit for the period - - - - 4.1 4.1
Transactions with owners
Dividends paid - - - - (3.6) (3.6)
Employee share schemes - value of employee services - - - - 0.9 0.9
Total transactions with owners recognised directly in equity - - - - (2.7) (2.7)
Balance at 31 March 2025 0.3 11.2 0.1 (320.6) 362.7 53.7
Comprehensive income
Profit for the period - - - - 8.8 8.8
Transactions with owners
Dividends paid - - - - (2.2) (2.2)
Employee share schemes - value of employee services - - - - 0.3 0.3
Total transactions with owners recognised directly in equity - - - - (1.9) (1.9)
Balance at 30 September 2025 0.3 11.2 0.1 (320.6) 369.6 60.6
Comprehensive income
Profit for the period - - - - 6.6 6.6
Transactions with owners
Dividends paid - - - - (4.7) (4.7)
Employee share schemes - value of employee services - - - - 1.0 1.0
Total transactions with owners recognised directly in equity - - - - (3.7) (3.7)
Balance at 31 March 2026 0.3 11.2 0.1 (320.6) 372.5 63.5
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 31 MARCH 2026
Note Six months to 31 March 2026 Six months to 31 March 2025 Year to 30 September 2025
£m £m £m
Cash flows from operating activities
Cash generated from operating activities before exceptional items 19 17.6 18.2 33.8
Cash outflow from exceptional items - (1.4) (1.5)
Cash outflow from share-based payments (0.1) (0.1) (0.2)
Cash generated from operating activities 17.5 16.7 32.1
Income tax paid (2.9) (1.0) (1.7)
Interest received on cash deposits 0.5 0.3 0.7
Cash outflow from discontinued operations - (7.7) (9.1)
Net cash generated from operating activities 15.1 8.3 22.0
Cash flows from investing activities
Purchase of intangible assets (1.9) (1.9) (4.0)
Purchase of property, plant and equipment (0.6) (1.1) (1.4)
Acquisition of subsidiary - net of cash acquired (2.2) - -
Net cash used in investing activities (4.7) (3.0) (5.4)
Cash flows from financing activities
Dividends paid (4.7) (3.6) (5.8)
Finance arrangement fees - (0.2) (0.3)
Payment of interest portion of lease liabilities (1.6) (1.3) (3.3)
Payment of principal portion of lease liabilities (0.6) (0.5) (0.7)
Net cash used in financing activities (6.9) (5.6) (10.1)
Net increase/(decrease) in cash and cash equivalents 3.5 (0.3) 6.5
Cash and cash equivalents at the beginning of the period 17.7 11.2 11.2
Cash and cash equivalents at the end of the period 21.2 10.9 17.7
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. General information
Basis of preparation
Victorian Plumbing Group plc is a public limited company which is listed on
the Alternative Investment Market ("AIM") of the London Stock Exchange and is
domiciled and incorporated in the United Kingdom under the Companies Act 2006.
Its registered office is 1 Sustainability Way, Farington Moss, Leyland, United
Kingdom, PR26 6TB.
These condensed consolidated interim financial statements ("interim financial
statements") were approved by the Board for issue on 19 May 2026, and have
been prepared as at, and for the six months ended, 31 March 2026. The
comparative financial information presented has been prepared as at, and for
the six months ended, 31 March 2025.
These interim financial statements do not constitute statutory accounts within
the meaning of Section 434 of the Companies Act 2006. The interim financial
statements for the half year ended 31 March 2026 are neither audited nor
reviewed by the Company's auditors. The consolidated financial statements of
the Group as at, and for the year ended, 30 September 2025 are available on
request from the Company's registered office and via the Company's website.
The report of the auditors on those accounts was unqualified, did not contain
an emphasis of matter paragraph and did not contain any statement under
Section 498 of the Companies Act 2006.
These interim financial statements have been prepared in accordance with IAS
34 Interim Financial Reporting issued by the IASB and adopted for use in the
UK. They do not include all the information required for full annual financial
statements and should be read in conjunction with the consolidated financial
statements of the Group as at and for the year ended 30 September 2025, which
were prepared in accordance with International Financial Reporting Standards
(IFRSs) in conformity with the requirements of the Companies Act 2006.
Going concern
After making appropriate enquiries, the Directors have a reasonable
expectation that the Group has adequate resources, in light of the level of
cash generation, to continue in operational existence for at least twelve
months from the date of approval of the condensed consolidated interim
financial information. For this reason, they have adopted the going concern
basis in preparing this condensed consolidated interim financial information.
2. Accounting policies, estimates and judgements
Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including the expectations of future events that
are believed to be reasonable under the circumstances.
In preparing these interim financial statements, the significant judgements
made by management in applying the Group's accounting policies and the key
sources of estimation uncertainty were the same as those that applied to the
consolidated financial statements for the year ended 30 September 2025. Full
disclosure of the judgement will be included in the 30 September 2026
financial statements.
3. Segmental information
IFRS 8 'Operating Segments' requires the Group to determine its operating
segments based on information that is provided internally. Based on the
internal reporting information and management structures within the Group, it
has been determined that there are two operating segments: Victorian Plumbing
and MFI, as the two entities are separately reported on internally.
Management has determined that there are two operating and reporting segments
based on the reports reviewed by the ELT, which is the chief operating
decision-maker ("CODM"). The ELT is made up of the Executive Directors and Key
Management and is responsible for the strategic decision-making of the Group.
Adjusted EBITDA
The ELT measures the overall performance of the Operating Group by reference
to adjusted EBITDA, a non-GAAP measure. This adjusted profit measure is
applied by the ELT to understand the earnings trends of the Operating Group
and is considered an additional, useful measure under which to assess the true
operating performance of the Operating Group.
The Directors believe that these items and adjusted measures of performance
should be separately disclosed in order to assist in the understanding of
financial performance achieved by the Operating Group and for consistency with
prior years.
Adjusted PBT
The ELT also measures the overall performance of the Operating Group by
reference to adjusted PBT, a non-GAAP measure. Adjusted PBT is defined as
adjusted EBITDA less interest, depreciation and amortisation.
This adjusted profit measure is applied by the ELT as an alternative
profitability measure, which incorporates the capital investment and the
financing structure of the Group.
Victorian Plumbing £m
MFI H1 2026 H1 2025
£m £m £m
Retail 166.7 0.5 167.2 152.7
Haulage 1.6 - 1.6 -
Revenue 168.3 0.5 168.8 152.7
Cost of sales (84.6) (0.3) (84.9) (76.1)
Gross profit 83.7 0.2 83.9 76.6
Administrative expenses (66.7) (1.8) (68.5) (61.4)
Adjusted EBITDA 17.0 (1.6) 15.4 15.2
Net finance costs (1.3) (0.1) (1.4) (0.7)
Amortisation and depreciation (4.5) (0.1) (4.6) (2.7)
Adjusted profit before tax 11.2 (1.8) 9.4 11.8
Exceptional items - - - (5.4)
Share-based payments (including NI) (1.0) - (1.0) (1.0)
Profit before tax 10.2 (1.8) 8.4 5.4
4. Revenue
An analysis of revenue by class of business is as follows:
Six months to 31 March 2026 Six months to 31 March 2025
£m £m
Bathroom 152.7 145.1
Tiles and flooring 14.0 7.6
Victorian Plumbing - retail 166.7 152.7
Haulage 1.6 -
Victorian Plumbing 168.3 152.7
MFI - homeware 0.5 -
Group revenue 168.8 152.7
An analysis of revenue by region is as follows:
Six months to 31 March 2026 Six months to 31 March 2025
£m £m
United Kingdom 168.7 152.7
Republic of Ireland 0.1 -
Group revenue 168.8 152.7
5. Operating profit
Expenses by nature including exceptional items:
Six months to March 2026 Six months to March 2025 £m Year to 30 September
£m 2025
£m
Employee costs (excluding share-based payments) 14.8 11.3 25.2
Agency and contractor costs 0.1 1.2 1.4
Share-based payments (including NI) 1.0 1.0 1.4
Marketing costs 47.3 43.9 84.6
Property costs 2.5 1.9 4.1
Computer costs 1.5 1.4 2.9
Other costs 2.3 1.7 3.2
Amortisation of intangibles 1.6 1.0 2.9
Depreciation of property, plant and equipment 1.1 0.5 1.5
Depreciation of right-of-use assets 1.9 1.7 3.9
Depreciation capitalised during the fit-out of the DC - (0.5) (0.5)
Exceptional items:
Double running and non-recurring administrative expenses - 2.1 2.0
Closure costs: Victoria Plum - 2.4 2.4
Professional fees associated with business combinations - 0.2 0.2
Total administrative expenses 74.1 69.8 135.2
Share-based payments (including NI) (1.0) (1.0) (1.4)
Exceptional items within admin expenses - (4.7) (4.6)
Total administrative expenses before separately disclosed items
73.1 64.1 129.2
6. Income tax expense
Six months to 31 March 2026 Six months to 31 March 2025
£m £m
Corporation tax
Current tax on profits for the period 1.4 1.4
Total current tax 1.4 1.4
Deferred tax
Origination of temporary timing differences 0.5 (0.1)
Total deferred tax 0.5 (0.1)
Taxation on profit 1.9 1.3
Factors affecting tax charge for the period
The tax assessed for the period is lower (H1 2025: higher) than the standard
rate of corporation tax in the UK of 25% (H1 2025: 25%). The differences are
explained below:
Six months to 31 March 2026 Six months to 31 March 2025
£m £m
Profit on ordinary activities before tax 8.4 5.4
Profit on ordinary activities multiplied by standard rate of corporation tax 2.1 1.4
in the UK of 25% (2024: 25%)
Effects of:
Share options (0.1) (0.1)
Expenses not deductible for tax purposes (0.1) -
Total tax charge for the period 1.9 1.3
Taxation on items taken directly to equity was £0.1m (H1 2025: £0.1m)
relating to tax on share-based payments.
7. Dividends paid and proposed
Six months to 31 March 2026 Six months to 31 March 2025 Six months to 31 March 2026 Six months to 31 March 2025
Pence per share Pence per share £m £m
Final ordinary dividend recognised as distributions in the period 1.45 1.09 4.7 3.6
Total dividend paid in the period 1.45 1.09 4.7 3.6
Interim ordinary dividend 0.74 0.70 2.4 2.3
Total dividend 0.74 0.70 2.4 2.3
The Board has declared an interim dividend of 0.74 pence per share (2025: 0.70
pence per share), which is a total cash distribution of £2.4m and will be
paid out of the Company's available distributable reserves on 12 August 2026,
to shareholders on the register of members at 17 July 2026. In accordance with
IAS 1 Presentation of Financial Statements, dividends are recorded only when
paid and are shown as a movement in equity rather than as a charge to the
consolidated statement of comprehensive income.
8. Earnings per share
Basic and diluted earnings per share
Basic earnings per share ("EPS") is calculated by dividing the profit for the
period attributable to ordinary equity holders of the parent by the weighted
average number of ordinary shares outstanding during the period.
Diluted EPS is calculated by dividing the profit attributable to ordinary
equity holders of the parent by the weighted average number of ordinary shares
outstanding during the period plus the number of incremental ordinary shares,
calculated using the treasury stock method, that would be issued on conversion
of all the dilutive potential ordinary shares into ordinary shares.
The following table reflects the income and share data used in the EPS
calculations:
Weighted average number of ordinary shares Total earnings Pence per share
£m
Half year ended 31 March 2026
Basic EPS 315,909,467 6.5 2.1
Diluted EPS 332,397,591 6.5 2.0
Half year ended 31 March 2025
Basic EPS 303,138,072 5.8 1.9
Diluted EPS 328,035,139 5.8 1.8
Year ended 30 September 2025
Basic EPS 314,295,920 12.9 4.2
Diluted EPS 331,111,216 12.9 3.9
The number of shares in issue at the start of the period is reconciled to the
basic and diluted weighted average number of shares below:
Weighted average number of shares
Weighted average number of shares for basic EPS 315,909,467
Dilutive impact of unvested shares in relation to share awards 16,488,124
Weighted average number of shares for diluted EPS 332,397,591
The average market value of the Group's shares for the purposes of calculating
the dilutive effect of share-based incentives was based on quoted market
prices for the period during which the share-based incentives were
outstanding.
Adjusted diluted earnings per share
Adjusted diluted EPS is an Alternative Performance Measure ("APM") and has
been calculated using profit from continuing operations for the purpose of
basic EPS, adjusted for total adjusting items and the tax effect of those
items.
Six months to 31 March 2026 Six months to 31 March 2025 Year to 30 September 2025
£m £m £m
Profit for the period 6.5 5.9 13.8
Exceptional items - 3.0 3.6
Share-based payments 1.0 1.0 1.4
Tax effect (0.1) (0.8) (1.1)
Total adjusted profit for the period 7.4 9.1 17.7
Number Number Number
Total issued share capital for the purposes of adjusted diluted earnings per 328,769,068 327,474,016 327,737,158
share
Adjusted diluted earnings per share (pence) 2.3 2.8 5.4
9. Business combinations
Acquisition of Sovereign Transport Services Limited and Sovereign Commercials
Limited
On 31 January 2026, Victorian Plumbing Ltd, a subsidiary, acquired the entire
issued share capital of Sovereign Transport Services Limited ("STS") and
Sovereign Commercials Limited ("SCL") (together "Sovereign"). Although this
was the acquisition of two separate entities, this is a linked transaction.
STS was acquired for initial consideration of £5.8m, with £0.2m being paid
to the seller through a Completion Accounts Adjustment. SCL was acquired for
share consideration of £0.1m.
£m
Purchase consideration:
Initial consideration 5.8
Completion accounts adjustment 0.2
Issue of shares 0.1
Total consideration 6.1
The provisional fair value of assets and liabilities recognised as a result of
this acquisition are as follows:
£m
Tangible fixed assets 0.8
Right of use assets 1.2
Intangible fixed assets 0.4
Trade and other receivables 4.1
Cash 3.8
Trade payables (3.3)
Other taxation and NI (0.6)
Corporation tax (0.8)
Lease liabilities (0.8)
Accruals (0.3)
Provisions (1.2)
Deferred tax (0.6)
Net identifiable assets acquired 2.7
Goodwill 3.4
Net assets acquired 6.1
The acquired business contributed revenues of £1.6m to the Group for the
period from the date of acquisition to 31 March 2026.
10. Goodwill
£m
Cost
At 31 March 2025 18.8
At 30 September 2025 18.8
Additions 3.4
At 31 March 2026 22.2
Net book value
At 31 March 2025 18.8
At 30 September 2025 18.8
At 31 March 2026 22.2
Goodwill of £3.4m was recognised upon the acquisition of Sovereign. This
goodwill is expected to generate benefit for the existing Victorian Plumbing
Group and has therefore been allocated to the Victorian Plumbing Group cash
generating unit ("CGU").
11. Intangible assets
Brands, licences and other intangible assets Computer software Assets under construction Total
£m £m £m £m
Cost
At 30 September 2024 - 15.8 1.1 16.9
Additions - 1.9 - 1.9
Reclassifications - 0.6 (0.6) -
At 31 March 2025 - 18.3 0.5 18.8
Additions - 2.0 - 2.0
Disposals - (0.7) - (0.7)
Reclassifications - (0.1) 0.1 -
At 30 September 2025 - 19.5 0.6 20.1
Additions - 1.8 0.1 1.9
Reclassifications - 0.1 (0.1) -
Acquired 0.4 - - 0.4
At 31 March 2026 0.4 21.4 0.6 22.4
Accumulated amortisation
At 30 September 2024 - 12.2 - 12.2
Charge for the period - 1.3 - 1.3
At 31 March 2025 - 13.5 - 13.5
Disposals - (0.7) - (0.7)
Charge for the period - 2.6 - 2.6
At 30 September 2025 - 15.4 - 15.4
Charge for the period - 1.6 - 1.6
At 31 March 2026 - 17.0 - 17.0
Net book value
At 31 March 2025 - 4.8 0.5 5.3
At 30 September 2025 - 4.1 0.6 4.7
At 31 March 2026 0.4 4.4 0.6 5.4
Assets under construction represent costs incurred in the development of
internal management systems, that are not yet available for use in the manner
intended by management.
Computer software comprises both internal salaries and external development
capitalised in relation to the Group's bespoke operational software. The Group
capitalised internal salaries of £1.7m in the six months ended 31 March 2026
(H1 2025: £1.7m) for development of computer software.
For the six-month period to 31 March 2026, the amortisation charge of £1.6m
(H1 2025: £1.3m) has been charged to administrative expenses in the income
statement.
12. Property, plant and equipment
Leasehold improvements Plant and machinery Fixtures Office Assets under construction £m Total
£m £m and fittings equipment £m
£m £m
Cost
At 30 September 2024 0.1 1.3 0.5 1.3 27.3 30.5
Additions - - - 0.1 0.2 0.3
Reclassifications 16.4 8.1 2.4 0.6 (27.5) -
At 31 March 2025 16.5 9.4 2.9 2.0 - 30.8
Additions 0.1 - - - - 0.1
At September 2025 16.6 9.4 2.9 2.0 - 30.9
Additions - 0.1 - - - 0.1
Acquired assets 0.1 0.5 0.1 0.1 - 0.8
At 31 March 2026 16.7 10.0 3.0 2.1 - 31.8
Accumulated depreciation
At 30 September 2024 0.1 1.0 0.5 1.0 - 2.6
Charge for the period 0.2 0.2 - 0.1 - 0.5
At 31 March 2025 0.3 1.3 0.5 1.0 - 3.1
Charge for the period 0.5 0.2 0.1 0.2 - 1.0
At 30 September 2025 0.8 1.5 0.6 1.2 - 4.1
Charge for the period 0.4 0.6 - 0.1 - 1.1
At 31 March 2026 1.2 2.1 0.6 1.3 - 5.2
Net book value
At 31 March 2025 16.2 8.3 2.4 0.8 - 27.7
At 30 September 2025 15.8 7.9 2.3 0.8 - 26.8
At 31 March 2026 15.5 7.9 2.4 0.8 - 26.6
13. Right-of-use assets
Motor Manual Handling Equipment Leasehold Property Right-of-use assets
Vehicles £m £m £m
£m
Cost
At 30 September 2024 - 0.4 52.7 53.1
Additions - 4.2 - 4.2
Modifications - - 0.1 0.1
At 31 March 2025 - 4.6 52.8 57.4
Additions - 0.1 - 0.1
Modifications - - 1.4 1.4
At 30 September 2025 - 4.7 54.2 58.9
Additions - 1.2 0.1 1.3
Acquired assets 1.2 - - 1.2
Disposals - (0.2) - (0.2)
At 31 March 2026 1.2 5.7 54.3 61.2
Accumulated depreciation
At 30 September 2024 - 0.3 7.4 7.7
Charge for the period - 0.2 1.5 1.7
At 31 March 2025 - 0.5 8.9 9.4
Charge for the period - 0.6 1.6 2.2
At 30 September 2025 - 1.1 10.5 11.6
Charge for the period 0.1 0.4 1.4 1.9
Disposals - (0.2) - (0.2)
At 31 March 2026 0.1 1.3 11.9 13.3
Net book value
At 31 March 2025 - 4.1 43.9 48.0
At 30 September 2025 - 3.6 43.7 47.3
At 31 March 2026 1.1 4.4 42.4 47.9
14. Trade and other receivables
Six months ended 31 March 2026 Six months ended 31 March 2025
£m £m
Trade receivables 7.5 5.5
Right-of-return asset 0.4 0.3
Accrued income 1.1 0.9
Prepayments 2.3 2.1
Total trade and other receivables 11.3 8.8
15. Trade and other payables
Six months ended 31 March 2026 Six months ended 31 March 2025
£m £m
Trade payables 28.8 23.6
Other taxation and NI 11.3 10.4
Refund liability 1.0 0.9
Other payables 2.0 1.7
Accruals 13.0 9.9
Total trade and other payables 56.1 46.5
16. Lease liabilities
Motor vehicles Manual Handling Equipment Leasehold Property Lease liability
£m £m £m £m
At 30 September 2024 - 0.1 46.0 46.1
Additions - 4.2 - 4.2
Modifications - - 0.1 0.1
Finance costs (excluding exceptional items) - 0.1 0.8 0.9
Finance costs (included in exceptional items) - - 0.7 0.7
Lease payment (excluding exceptional items) - (0.2) (1.1) (1.3)
Lease payment (included in exceptional items) - - (0.5) (0.5)
At 31 March 2025 - 4.2 46.0 50.2
Additions - 0.1 - 0.1
Modifications - - 1.4 1.4
Finance costs - 0.1 1.5 1.6
Lease payment - (0.6) (1.6) (2.2)
At 30 September 2025 - 3.8 47.3 51.1
Additions - 1.4 - 1.4
Acquired assets 0.8 - - 0.8
Finance costs - 0.2 1.4 1.6
Lease payment (0.1) (0.6) (1.6) (2.3)
At 31 March 2026 0.7 4.8 47.1 52.6
During the period, the Group entered into leases for manual handling
equipment. An addition of £1.4m has been recognised as a right-of-use asset,
in accordance with IFRS 16 Leases, representing the discounted future
cashflows under the contract.
Lease liabilities as at 31 March were classified as follows:
Six months ended 31 March 2026 Six months ended 31 March 2025
£m £m
Non-current 48.0 47.3
Current 4.6 2.9
Total lease liabilities 52.6 50.2
17. Borrowings
Six months ended 31 March 2026 Six months ended 31 March 2025
£m £m
Amounts drawn under revolving credit facility - -
Unamortised debt issue costs (0.1) (0.2)
Total borrowings (0.1) (0.2)
At 31 March 2026, the £30m revolving credit facility ("RCF") remained
undrawn. On 18 December 2024, the RCF was secured for £30m, with a
termination date of 17 December 2027. The facility is secured by a debenture
dated 7 June 2021. Interest on the RCF is charged at SONIA plus a margin based
on the consolidated leverage of the Group. A commitment fee of 35% of the
margin applicable to the RCF is payable quarterly in arrears on unutilised
amounts of the RCF. There is no requirement to settle all, or part, of the
debt earlier than the termination date.
Unamortised debt issue costs of £0.1m (H1 2025: £0.2m) are included in
prepayments.
18. Share capital
Six months ended 31 March 2026 Six months ended 31 March 2025
£m £m
Allotted, called up and fully paid
328,769,068 ordinary shares of 0.1p (31 March 2025: 327,474,016 ordinary 0.3 0.3
shares of 0.1p)
19. Cash generated from operating activities
Cash flows from continuing operating activities Six months ended 31 March 2026 Six months ended 31 March 2025
£m £m
Profit before taxation for the period 8.4 7.2
Adjustments for:
Depreciation and amortisation 4.6 2.7
Share-based payments (including NI) 1.0 1.0
Finance income (0.6) (0.3)
Finance costs 2.0 1.7
Exceptional items recognised within administrative expenses - 2.3
Adjusted EBITDA from continuing operations 15.4 14.6
Fair value gain on financial derivatives (0.5) (0.5)
(Increase) / decrease in inventories (4.5) 0.2
Increase in receivables (2.2) (0.9)
Increase in payables 9.4 4.8
Cash generated from continuing operating activities before exceptional items 17.6 18.2
Free cash flows from continuing operations Six months ended 31 March 2026 Six months ended 31 March 2025
£m £m
Cash generated from operating activities before exceptional items 17.6 18.2
Repayment of lease liabilities (excluding exceptional items) (2.2) (1.3)
Purchase of intangible assets (excluding exceptional items) (1.9) (1.9)
Purchase of property, plant and equipment (excluding exceptional items) (0.6) (0.5)
VAT not yet recovered on exceptional items - (1.6)
Free cash flows from continuing operations 12.9 12.9
Adjusted EBITDA 15.4 14.6
Operating cash conversion 84% 88%
VAT not yet recovered on exceptional items related to timing differences on
warehouse transformation expenditure.
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