Research on Victorian Plumbing Group Plc (VIC:LON) from Equity Development
Victorian Plumbing’s strong underlying H126 results are further evidence of the success of its market-leading, profitable and cashflow generative business. H126 Adj. EBITDA rose 11.8% to £17m, excluding the £1.8m planned strategic investment in homewares under the MFI brand. Underlying FCF from operations was stable at a robust £12.9m in H126 (84% conversion), allowing for the planned strategic investment into the £21bn homewares segment. Reflecting continued confidence in the group, the Board has declared a 5.7% increase in the interim dividend to 0.74p. Trading on only c.7.5x cal 2027 EV/EBITDA and c.13.5x cal 2027 PER, its shares today are well below our 110p Fair Value per share (equivalent to a c.5% cal 2027 FCF yield).
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