Research on Victorian Plumbing Group Plc (VIC) from Equity Development
FY26 revenue rose 11% to c.£344m, c.4% ahead of our and consensus estimates, with growth of c.11.4% in H2 following 10.5% in H1. A 13% increase in orders offset a 5% decline in AOV, and the group won market share across bathrooms, tiles and flooring. The relaunch of MFI in homewares has gone well, with revenues of £3m against our £1.5m estimate and c.8,000 products now available. Losses of c.£4m were c.£1m above plan, driven by higher marketing costs, but remain well controlled. FY26 Adj. PBT of c.£22m is c.1% ahead of estimates, and we raise our Adj. PBT forecasts by c.3.5% for FY27E and FY28E. Net financial cash of c.£25m supports our outlook, although we remain mindful of the potential for rising inflation and interest rates. At 82p, shares trade on under 8x cal 2027 EV/EBITDA and c.14x cal 2027 PER, at a discount to our Fair Value of 110p per share, which is equivalent to a c.6% cal 2027 FCF yield.
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