The question behind the headline growth

Victorian Plumbing Group's most recent trading statement, issued on 13 October 2026 ahead of full-year results due on 8 December, reported Revenue growth of about 11% to roughly £344m for the year to 30 September. Breaking that figure down shows how far growth now depends on newer categories and acquisitions rather than the bathroom products on which the Business was built.

The Lancashire-based group sells bathroom suites, furniture, showers and related products online, principally under the Victorian Plumbing (LSE:VIC) brand, and has expanded into trade customers, tiles and flooring and, more recently, the relaunched MFI furniture brand. A new chief executive took over on 1 April 2026 when the company completed its Leadership succession.

About the company

Victorian Plumbing sells bathroom suites, furniture, showers and related products online. It has expanded into trade customers, tiles and flooring, and the relaunched MFI furniture brand, and it acquired Sovereign Transport Services, a haulage business. A new chief executive took over on 1 April 2026.

Breaking down the revenue

Tiles and flooring revenue rose about 76% to around £31m. Trade sales increased 6% to approximately £78m, about 23% of group revenue. Sovereign Transport Services, a haulage business acquired during the year, contributed about £7m, and MFI added roughly £3m while losing about £4m as the group continued to invest in the brand.

Those figures imply that tiles and flooring alone added around £13m of revenue. Combined with the haulage acquisition, that accounts for a substantial share of the roughly £34m increase in group revenue. An industry analyst estimated underlying growth of about 5% once tiles and flooring, haulage and trade were stripped out.

Orders up, basket size down

Orders rose 13% over the year while average order value fell 5%. Walton attributed part of the decline to the shift towards lower-priced tiles and flooring, and said shoppers remain reluctant to commit to larger purchases. Over the same period the bathroom furniture market grew by only 0.8%, suggesting the group continued to win share in a subdued market.

The chief executive said LSE:VIC was particularly pleased by solid growth in tiles and flooring. Trade, by contrast, grew more slowly than the group, so its share of sales edged lower. Because trade customers tend to order repeatedly, its progress is a separate test of whether the strategy is broadening the business rather than simply adding categories.

What it means for profit

Adjusted pre-tax profit was expected to be about £22m, against market expectations of £21.7m and £21.8m a year earlier. The core LSE:VIC business generated approximately £26m on the same measure, so the newer ventures, MFI in particular, absorbed several million pounds. Growth in lower-ticket categories can widen the customer base and increase repeat visits, but it also means more orders, deliveries and returns per pound of revenue, which can pressure margins if logistics costs are not controlled.

Risks and limitations

Tiles and flooring growth will become harder to sustain as the base enlarges, and the acquired haulage revenue will stop flattering comparisons once it laps its first year. Demand for bathrooms remains tied to housing transactions and consumer confidence, while MFI's losses depend on how quickly the Brand gains recognition. Competition from larger home improvement retailers is intense.

The revenue split

Revenue of roughly £344m, up 11%, implies prior-year revenue of about £310m, an increase of about £34m. Tiles and flooring revenue of about £31m, up 76%, implies prior-year revenue of about £17.6m, an increase of about £13.4m. Haulage added about £7m, and MFI added about £3m of revenue while losing about £4m. Together, tiles and flooring and haulage account for about £20m of the £34m increase, about 59%. Trade sales of about £78m were about 23% of the total, as stated.

Orders and basket size

Orders rose 13% and average order value fell 5%, so revenue from the core business grew by about 7.4% on those two measures (1.13 times 0.95 is about 1.074). A fall in basket size is partly due to the shift towards lower-priced tiles and flooring, so a mix change rather than price cuts explains part of the movement. Shoppers remain reluctant to commit to larger purchases. The bathroom furniture market grew 0.8%, so the group's growth was well above the market.

The role of trade

Trade customers, such as installers and small builders, order repeatedly, so growth in this area suggests a base of recurring business. Growth of 6%, slower than the group's, shows that the trade business is not yet as dynamic as tiles. Its share of sales edged lower as a result.

What to look for in the results

Full-year results are due on 8 December. They will show profit, margins and cash, which the trading statement did not set out. The MFI Investment loss of about £4m will be a point of interest, as will the contribution from the acquired haulage business and how profitable the tiles and flooring sales are compared with bathroom products.

Marketing, delivery and customer behaviour

An online retailer's results depend on the cost of attracting customers, the efficiency of delivery and the willingness of shoppers to spend. Orders up 13% and average order value down 5% show that more customers bought, but each spent less, partly because of the shift to lower-priced items. For the group, a higher number of orders can help to spread fixed costs across more sales, though the lower basket size means each order contributes less revenue.

A haulage Acquisition changes the cost structure of delivery, since the group can now move bulky products such as bathroom suites using its own vehicles. That may reduce reliance on third-party carriers and improve control of delivery timing.

The relaunch of MFI as a furniture brand uses a name that many UK consumers remember. The loss of about £4m shows that building a brand requires spending ahead of revenue, and the group has chosen to continue that investment.

The change of chief executive on 1 April 2026 completed the leadership succession. The results on 8 December will be the first full-year results under the new chief executive, which gives them added interest.

Next steps

Full-year results on 8 December should provide audited revenue by category, gross Margin trends and cash flow. Investors will look for evidence on whether tiles and flooring margins compare with bathrooms, how much logistics savings Sovereign brings internally, and whether the board sets out targets for the newer categories under its new leadership. The update did not give a year-end cash position, so the results will also show how much the haulage acquisition and MFI investment have absorbed.