Market Reaction - Victorian Plumbing

Publish Date: 21/05/2024

Time Period: Acquisition of AHK Designs Ltd 

- Victorian Plumbing Ltd, a subsidiary of Victorian Plumbing Group PLC, has acquired AHK Designs Ltd, which trades as Victoria Plum, an online-only UK bathroom retailer. 

- Victorian Plumbing Ltd purchased AHK Designs Ltd for GBP22.5 million. 

- Despite Victoria Plum's recent administration and ongoing cost reduction program, the company intends to continue trading the business as normal initially, pending the finalization of the integration plan. 

- Victoria Plum is expected to reach approximately breakeven in the second half of 2024. 

- The existing Victoria Plum team will join the Victorian Plumbing Group. 

- The company looks forward to providing customers with a wide range of bathroom products and accessories.  

I imagine that the news of Victorian Plumbing purchasing Victoria Plum was leaked as the share price rose 16% between Friday morning and the end of Monday even though the news wasn't officially released until Monday. (the share price did rise 9% on Monday alone however).

This was probably a good purchase for the company, although whether it would have been better reinvesting £22.5m into the existing business rather than another which isn't profitable is relevant.