A full guide to Victorian Plumbing after its IPO
Oliver Brett July 19, 2021 8:21 PM
Victorian Plumbing hit a record £850m market capitalisation upon admission to the Alternative Investment Market in June 2021. So what made this Liverpool-based firm such a success?
What does Victorian Plumbing do?
With Victorian Plumbing, it’s all about online bathroom supplies: showers, basins, toilets and so on. Oh, and tiles. Lots of them too.
The resilience of certain sectors during the year-plus of pandemic adjustments has certainly had its winners – and families who haven’t spent money on holidays have built up cash reserves for home improvements: loft conversions, refurbished basements, a new garden shed doubling up as a home office. And bathrooms of course.
With a share of about 14% of the £1.2bn market for sanitary ware and accessories in the UK, Victorian Plumbing is the largest online participant in the space.
Is Victorian Plumbing profitable?
It could be said that 2019 was something of a breakthrough year. Revenue grew by 28% to hit £118m. But profit was particularly impressive, rising from £3.5m to £10.1m. In the year to September 2020, revenue almost doubled to £208.7m and profits surged again, to £26.2m.
Most recent accounts show that in the six months to March 31, 2021, it produced even better figures, with revenue of £140.7m, and earnings of £20.1m.
What happened in the Victoria Plumbing IPO?
Victorian Plumbing's float proved a financial windfall for chief executive Mark Radcliffe, who founded the company in 2000. Prior to IPO, Radcliffe, 42, held a 74% stake while his brother Neil has 14% and his mother 4%.
A born entrepreneur, Mark earned his first million setting up First2save, a mobile phone accessories business, from his parents' shed.
Shares surged around 20% on their first day of trading, valuing the company in excess of £1bn and official setting a new record benchmark for the AIM, London’s junior market.
- Analysis: Our full guide to the latest IPOs and SPACs
- Read More: What is an IPO and how do they work?
- Trade IPOs: Take a position with CFDs
Shares climbed as much as a quarter to 329p on the day of the float, before falling back to 321p in late afternoon trade.
What was the reaction to the Victoria Plumbing IPO?
At 275p a share as of July 19, 2021 are down around 16% from their peak at launch.
Who are the directors of Victorian Plumbing?
- Philip Bowcock, Chair
- Mark Radcliffe, CEO
- Paul Meehan, CFO
- Damian Sanders, Senior Independent Non-Executive Director
- Kath Smith, Independent Non-Executive Director
She is assisted by:
- Neil Radcliffe, Product Director
- Rich Monaghan, Director of Finance
- Joe Pascoe, CMO
- Leighan Mason, CTO
What is Victorian Plumbing’s business strategy?
Victorian Plumbing has no physical retail footprint, stocking its products in central warehouses and delivering to homes.
Around 86% of sales are to retail customers, with the company now looking to increase its sales to trade customers.
Radcliffe is also keen to widen his range to include lighting products and to expand into Europe. Ireland, France, Spain and Germany are the logical markets to explore assuming post-Brexit bureaucracy can be comfortably negotiated.
Victorian Plumbing has already prospered on the increasing willingness of customers to trust online enterprises for the purchase of bulky domestic hardware. Ecommerce specialists now account for about 29% big DIY chains, steadily eating in to the market share of big DIY stores (36%).
Around three-quarters of Victorian Plumbing’s sales coming from own-brand products such as Chatsworth and Arezzo, which allows for higher gross margins.
How to trade stocks at City Index
You can trade stocks with City Index using spread-bets or CFDs, with spreads from 0.1%. Follow these easy steps to start trading now.
From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.