Stock crash sends £ 120million down the drain on Victorian Plumbing after companies warned of uncertain prospects in the coming months and stocks fell 41%
Victorian Plumbing stocks had their worst day after the company warned of an uncertain outlook for the coming months.
The stock plunged 41 percent, or 63.5 pence, to an all-time low of 91.5 pence – the value of CEO Mark Radcliffe and his family’s stake by £ 120 million.
The Liverpool-based company said that since the lockdown ended, customers have spent less on housewares at great expense.
Washout: Victorian Plumbing’s stock plummeted 41%, or 63.5p, to an all-time low of 91.5p – bringing the value of CEO Mark Radcliffe (pictured) and his family’s stake by 120 million
That has dampened the demand for sinks, toilets and bathtubs sold through its website. As a result, the corporation warned that next year results are likely to be worse than they were in 2021.
The sell-off means the company has lost 65 percent of its value since it went public in June, with a share price of 262 pence each time.
This has dropped the company’s value from £ 850 million to £ 297 million. The latest share price wiped the Radcliffe family’s shares behind the company by £ 120 million.
Victorian Plumbing was founded a little over 20 years ago by CEO Radcliffe in his parents’ shed in Southport, Merseyside.
The 42-year-old father of three and self-proclaimed workaholic raised £ 212 million during the float by giving up a sizable portion of his then 72 percent stake in the company.
Prior to Victorian Plumbing, Radcliffe became the UK’s first eBay millionaire at the age of 30 after starting First2save, a mobile phone accessories store, in the same shed.
He wanted to earn money so that he could buy an expensive car when he was 25 – but he missed that goal and bought a Ferrari when he was 26.
With a stake of almost 46 percent, he remains the largest shareholder in Victorian Plumbing.
Radcliffe’s younger brother, Neil, 40, owns 9 percent and serves as the company’s product director.
Her parents, Carole and George, own another 3.3 percent, meaning Victorian plumbing remains largely a family affair, with the Radcliffe keeping a 58 percent stake.
The family as a whole raked in a total of £ 267 million after dumping nearly 102 million shares in the company on the listing.
Sales slump: Victoria Plumbing said the end of the lockdown dented demand for sinks, toilets and baths sold through their website
However, the stock’s depreciation since its debut has cost its paper assets more than £ 320 million.
The company said it was “not exempt” from disruptions in global supply chains.
However, the popularity of its products made the company confident that it would largely be able to cushion the pressure from the crisis.
The valuation overshadowed results for the year ended September, when revenues rose 29 percent to £ 269 million.
Profits fell 17 percent to £ 19.7 million.
Appreciating a “milestone year” for the company that floated it public, Radcliffe said, “While the near-term outlook is difficult to predict as the world normalizes based on events of the past two years, it is inevitable that consumers will Buying behavior will continue to shift online. ‘
Victorian Plumbing, like other online retailers, was a big winner during the pandemic as consumers spend more money on renovations while stuck at home.
But with high street stores reopening and travel restrictions easing, money is increasingly being used for vacations, going out and doing brick and mortar shopping.