Research on Victorian Plumbing Group Plc (VIC:LON) from Equity Development
Victorian Plumbing has announced a change of CEO, a bolt-on acquisition and a very strong trading update. Revenue has risen an impressive 9% for the first 21 weeks of FY26E with profit margins maintained. As such, management is confident of meeting FY26E expectations, and we anticipate a smooth handover to Stephnie Judge as she steps up to become CEO. The group has completed the acquisition of Sovereign Transport Services Limited and Sovereign Commercials Limited for £3.4m cash (mostly). Victorian Plumbing has worked with the family-run business for two decades, and by acquiring the business has gained greater control of its end-to-end value chain. Although the stock has rallied 20% in the past few weeks, trading on c.8x cal 2027 EV/EBITDA we see potential upside on a rerating as our Fair Value is 110p per share, equating to 1.1x EV / Revenues, c.10x EV/EBITDA and a c.5% FCF yield (cal 2027).