NEWS | Round-up VIEWPOINT
Storms forecast, and we’re not talking
about the weather Tom Reynolds CEO of the BMA on why the industry must remain cautious for the year ahead
Sales soar by almost a third in ‘milestone year’ for Victorian Plumbing
AS WE look ahead to what 2022 may hold for bathroom manufacturers in terms of economic, political, and social outlook, it feels tricky to predict the coming weeks let alone months. The Covid era has already been full of previously unimaginable scenarios, and at this time of year, our natural instinct to plan, is futile to say the least. If we see more variants spreading and a new onslaught of restrictions, consumer confidence is likely to take a hit and the world’s supply problems would be further compounded with more logistical snarl-ups. Given the scale of those challenges manufacturers have been incredibly resilient, especially given the unprecedented demand due to RMI activity in the UK. But these issues are now holding back growth and curtailing our ability to deliver goods.
My new year wish for 2022, is for an end to the pandemic and the start of the
stability we all hope for
The continued impact on manufacturing and construction related sectors could be difficult to navigate, and let’s not forget, these issues are not to be considered in isolation. On top of the ongoing international turmoil, Brexit repercussions and structural issues like the aging population and
labour shortages are
increasingly coming to the fore. Everyone knows the ‘recovery’ is fragile, and given developments in recent weeks, I would go as far to say it is delicate.
Costs faced by business input prices have increased, both in terms of energy and commodities, and where a cost cannot be fully passed through, margins are squeezed.
The Bank of England’s Monetary Policy Committee has signalled the upcoming interest rates increases. On a national level, these constraints on the economy will put pressure on businesses as they try to plan, invest, and innovate in response to climate change challenges, to play their part in the country’s bid to reach net zero. We know the need for clear and effective communication and advocacy is so valuable to BMA members in this continuing pandemic timeframe, and that provides our focus for 2022. We are partnering with research specialists to ensure
we offer accurate and reliable insights into the market and are bolstering our offer with more political analysis and special interest groups designed to shape Government policy outcomes. We are redesigning how we engage, and raising our members interests. Whether we are dealing with a temporary blip in
recovery, or a more sustained period of disruption, it’s clear the UK economy is not out of the woods yet. This creates a great deal of uncertainty, at a time when the desire to grow and invest is so strong. My wish is for an end to the pandemic and the start of the stability we all hope for.
6
ONLINE BATHROOM retailer Victorian Plumbing has reported sales up by almost a third and profits up by more than half for the 2021 financial year. Revenue for the year to September 30 was £268.8 million – up by 29% over 2020’s £208.7m. Adjusted pre-tax profit was also up, leaping by more than half (53%) from £26.2m last year to £40.1m.
Pre-tax profits, once the exceptional costs of £9.4m and share-based payments of £7.7m related to its stock market flotation in June were taken into account, reduced to £19.7m. The online retailer said that total orders were up by 17% to 906,000 against 776,000 in 2020, with average order values up by 10% to £297 from £269 last year. Its active customer base rose by 13% to 638,000 from 565,000 in 2020. The marketing spend as a percentage of revenue increased marginally to 26% (2020: 25%), with a focus on digital marketing. The company also reported that it had increased its marketing spend as a percentage of revenue to 26% from 25% last year, with greater investment in focused digital performance-based marketing to complement off-line creative content. This, it said, had increased its brand awareness from 58% in 2020 to 64% in 2021.
Victorian Plumbing also increased its product offering to more than 24,000 products from over 125 brands, with the strategic addition of two well-known third-party brands, Duravit and Villeroy and Boch.
Referring to the supply chain problems that have plagued the KBB industry, Victorian Plumbing said that its “adaptability and investment in in-stock inventory” meant it secured
more stock when supply chain disruptions were at their greatest. The popularity
of its own-brand products, Victorian Plumbing said, helped it to absorb most of the current supply chain pressures.
Founder and chief executive Mark Radcliffe said: “This has been a milestone year for Victorian Plumbing as we accelerated our growth, supported by the continued dedication and agility of colleagues around the business, and successfully completed our listing on the London Stock Exchange.
“Our distinctive brand and extensive choice of quality bathroom products have been key drivers in attracting consumers to our platform, whilst the strength of our supply chain and our investment in inventory means that the majority of our products have remained immediately available. “Although the short-term outlook is difficult to predict as the world normalises from the events of the past two years, it is inevitable that consumer buying behaviour will continue to move online.”
He concluded: “The board remains confident in the medium to long-term growth prospects for Victorian Plumbing.”
Looking ahead, Victorian Plumbing said that during the first two months of FY 2022 consumers continued to spend more on leisure and less on big-ticket
material homeware
purchases, with demand and revenue broadly the same as last year and 41% ahead of 2020.
Dean Buckingham joins Taylist Media as sales manager
KBBREVIEW AND Kitchens Bedrooms & Bathrooms publisher Taylist Media is delighted to reveal that Dean Buckingham will be joining the company as its new sales manager.
Dean, who has extensive experience in media sales across the KBB industry, stepped into the role at the start of December 2021. “We’re delighted that Dean has joined the
Taylist team,” said managing director Julie Williams. “He’s got a fantastic knowledge of the sector and can really hit the ground running. We’re really looking forward to him getting stuck in.”
role
The sales manager position is a permanent and Taylist’s
commercial director
Tara McTigue will go on maternity leave later this month.
· January 2022
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