Victorian Plumbing (LSE:VIC) - [Discussion Thread]

📊 Investing
1

This looks a really interesting stock, does anyone here hold this or looking at entry at the moment?

Key statements to also note:

Exceptional items
Total fees incurred in relation to the IPO were £9.8 million, of which £9.4 million has been expensed through the income statement as an exceptional item, with the balance of £0.4 million being charged to the share premium account.

Share-based payments
The Group incurred share-based payment charges (including associated NI) of £7.7 million (2020: £nil). The majority of the charge recognised relates to shares awarded to management to incentivise a change in ownership such as the IPO that occurred in June 2021.

And for Dividend Investors:

Dividend
No final dividend for the year ended 30 September 2021 has been declared. The current intention of the Board is to pay a dividend in relation to the financial year ending 30 September 2022.

I see holding back dividends for another year as a good sign to further build up cash in bank, currently at 32m.

All in all I see the latest results as good. The EPS all being the same, should increase from 5.3p back to 11.1p would give a great yield going forward at current suppresses levels. That said given the note from directors of potential future headwinds, taking a 50% haircut and assuming EPS remains around the 5p mark, this share looks great value right now.

Another metric I like is the company has been profitable the last 3 years, has no debt, and I like what I see in the IPO document that originally listed this company at 262p.

I still need to run through analysis of typical consumer spend, and market size but this is looking to be a bargain at current levels.

If I were to bet, I could see the SP in the 6-12 month plus range depending on interim results returning to a range of 140-160p, so room for both capital and income growth here, but as always DYOR.

Note: I currently hold no shares.

4 Likes
2

Looks interesting, would work fine for me to get diversified across yet another consumer sector.

Any idea why the sp got so battered right after IPO?

3

Realistically I think its an over reaction, to the fact things are opening up and consumer spending is going elsewhere (pubs/xmas/holidays).

I’m going to wait a few days - Mark Radcliffe bought £3m worth of shares on Friday, which is 25% of the average monthly trading volume so expecting a dip. That said I’m terrible at timing the markets and already think the drop is an overreaction.

4

I don’t have the industry experience in their sector but i can see they are coming in as a disruptor which is a good thing but usually an uphill task - not many sector disruptors succeed.

So the big questions are -
Is the Market ready to be disrupted - timing?
Is this the right company to disrupt the market?

I don’t know if there’s anyone on the forum who lives, breathes and have practical work experience within this space that can shed some light…

5

There are other unlisted companies out there too going from strength to strength by expanding online.

BERENBERG CUTS VICTORIAN PLUMBING PRICE TARGET TO 130 (260) PENCE - ‘BUY’

6

I think a volatility in the market could get me close to 83.50p or below entry point.

With all the macro releases scheduled for this week, lets see how the market reacts