REG - Ultimate Products - Annual Report 2024 and Notice of AGM
12/11/2024 07:00
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RNS Number : 7681L Ultimate Products PLC 12 November 2024
12 November 2024
Ultimate Products plc
("Ultimate Products", the "Company" or the "Group")
Posting of Annual Report and Accounts and Notice of Annual General Meeting
Ultimate Products, the owner of a number of leading homeware brands including
Salter (the UK's oldest houseware brand, est.1760) and Beldray (est.1872),
announces that, following the release of its final results statement on 29
October 2024, it has today published its Annual Report and Accounts ("the
Annual Report") for the year ended 31 July 2024.
The Company also announces that it will hold its Annual General Meeting
at 1.00pm on Friday 13 December 2024 at the Company's registered office
at Manor Mill, Victoria Street, Chadderton, Oldham, OL9 0DD. As such, the
Company has today published and posted to shareholders its 2024 Notice of
Annual General Meeting, which incorporates a Rule 9 waiver circular in order
to enable the Company to exercise its buy back authority and implement its
stated capital allocation policy, and form of proxy.
Copies of the Annual Report and the Notice of the 2024 Annual General Meeting
are available to view on the Company's website: www.upplc.com
(https://url.avanan.click/v2/___http:/www.upgs.com/___.YXAxZTpzaG9yZWNhcDphOm86YzcwZDVhOTllMmVjY2Y2NjFmNDc2NWRlNDAyY2JkNjY6Njo0MjAyOmEyYWRiZjIwNTc1MDJhYWNlYjc5MjZhOTZkZmNjOTMwMGM3NmM5MzNiMDk1MWI4NzczOWFiOTEwYTZmMDg0YWQ6cDpGOk4)
. They have also been submitted to the National Storage Mechanism and will
shortly be available for inspection
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://url.avanan.click/v2/___https:/data.fca.org.uk/___.YXAxZTpzaG9yZWNhcDphOm86YzcwZDVhOTllMmVjY2Y2NjFmNDc2NWRlNDAyY2JkNjY6Njo3ZjM2OmU5OGQwMDMzNjQyNTIzMjJmMzUzZjg0YzZmYzQ2ZTEwYTQ0MTdiYjE4NDU2NDg1ZThjYTcyYjAxMDEzNDZmODc6cDpGOk4#/nsm/nationalstoragemechanism)
in compliance with paragraph 6.4.1 of the FCA Listing Rules. Copies of these
documents, together with a form of proxy for use in connection with the 2024
Annual General Meeting, have been posted or made available to the Company's
shareholders.
The final results statement and presentation of 29 October 2024 included a
set of condensed financial statements and a fair view of the development and
performance of the business and the position of the Company. The information
contained within the final results statement, together with the information
set out below, all of which is extracted from the Annual Report for the year
ended 31 July 2024, constitute the requirements of the Disclosure Guidance
and Transparency Rule 6.3.5(3)(a). This announcement is not a substitute for
reading the full Annual Report.
Directors' responsibility statement
The following Directors' responsibility statement is extracted from the Annual
Report (page 81):
The Directors are responsible for ensuring that the Annual Report, taken as a
whole, are fair, balanced and understandable, and provides the information
necessary for shareholders to assess the Group's performance, business model
and strategy.
Directors' responsibilities pursuant to DTR4
The Directors confirm to the best of their knowledge:
· The financial statements have been prepared in accordance with
the applicable set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit and loss of the Group and
Company.
· The Annual Report includes a fair review of the development and
performance of the business and the financial position of the Group and
Company, together with a description of the principal risks and uncertainties
that they face.
Principal risks and uncertainties
The following description of the principal risks and uncertainties that the
Group faces is extracted from the Annual Report (pages 44 to 45):
The Board is responsible for the Group's risk management and internal control
systems and for reviewing their effectiveness, supported by the Audit and Risk
Committee.
We review our business regularly to identify and document key business risks.
Once identified, risks are assessed according to the likelihood and impact of
the risk occurring and an appropriate mitigating response is determined. This
risk mitigation plan is then regularly monitored by the Audit and Risk
Committee with periodic review and discussion by the Board as a whole. The
table below sets out the Group's principal risks as determined by the Board,
the gross risk movement from the prior year and the corresponding mitigating
actions. This represents the Group's current risk profile and is not intended
to be an exhaustive list of all risks and uncertainties that may arise.
Area Risk Mitigation Movement
Macroeconomic factors Macroeconomic trends affecting consumer confidence and reducing non-food The Group's international business provides economic diversity and some LEVEL
spending such as reductions in GDP per capita, unemployment, inflation, protection against a downturn in the UK economy. Despite the challenging
interest & tax rates could all affect consumer demand. In addition, market conditions, the Group sees the opportunity to increase its market share
aggregate demand for our products can be influenced by individual retail by developing new customer relationships, particularly internationally and
partner performance and strategy. As well as affected demand for our goods, through online channels. The Group's products, being mass-market and
reduced retail demand can also impact the credit worthiness of our customers. value-led, are well placed in the event of an economic downturn. The business
During the year the UK economy experienced a mild recession, as interest rate has well established procedures for managing credit risk with its customers
rises designed to reduce inflation have reduced consumption. including credit insurance. The Group has a well-diversified customer base,
and is not reliant on any one customer, and has a 20% limit for individual
customers. This helps to reduce risk when their demand changes due to their
financial performance or strategy. The Group also has a well-diversified
product base, selling over 3,000 SKUs each year, therefore it is not dependent
on any one given product.
Sourcing A major loss of continuity in the supply of goods for resale could adversely The Group uses over 300 suppliers, which reduces risk over any individual UP
affect the Group's revenues. In addition, we have heavy reliance on China as a supplier. The Group maintains close relationships with its suppliers through
source of products. Any deterioration in, or changes to political, economic or regular factory visits and interaction with its local teams. We have detailed
social conditions in China could disrupt the supply of goods or result in processes in terms of taking on new factories.
higher product cost prices.
Wherever possible, multiple sources of supply are sourced for major products.
In addition, we have a QA/reputational risk from our factories. The quality of The Group closely monitors developments in China and continues to consider and
our factories is of huge import to our ongoing reputation with our consumers use alternative sources when practicable and viable. In the current year,
and retail partners. buying teams have begun to have an element of variable remuneration linked to
decreasing geographical supply concentration.
Supply chain management As a wholesaler, the Group has a significant working capital requirement. Stock levels and purchasing are closely managed, with all purchase orders DOWN
Inefficient stock management could result in overstocking, which may adversely being reviewed before being placed. The Group's systems facilitate close
affect working capital. Conversely, understocking could limit the Group's management of the completion and timing of purchase orders placed. Stock is
ability to maximise revenue opportunities. In the current year we have seen a categorised between 'free' and (pre) 'sold' to ensure that management focus on
reduction in the risks related to the shipping crisis which affected global higher risk items. 'Free' stock is reviewed and prompt actions are taken where
supply chains, particularly in relation to the costs and availability of necessary.
shipping capacity.
Margin pressure As a wholesaler, the Group faces consistent price pressures from retail The Group's strategy of international growth, expansion of online channels and LEVEL
customers, whilst facing changes to input costs such as freight costs, increased penetration of supermarkets continues to provide greater diversity
exchange rate fluctuations, factory gate price and changes in the costs of raw and a balanced-margin portfolio. The Group also employs a combination of
materials. In the current year, we have once again seen shipping costs begin margin-enhancing initiatives including monitoring profitability of individual
to rise due to the disruption in the Red Sea. However, we have seen a more product lines, continued product innovation and refreshing product ranges,
benign and stable currency situation. balanced against the need to ensure that our products remain competitive.
Furthermore, the Group seeks to constantly develop and implement productivity
improvements. The Group actively manages foreign exchange risk through use of
forward contracts.
Protection of brands Failure to develop and enhance the product range of our brands could result in A high level of new product development focus is maintained and monitored by DOWN
loss of our competitive advantage, which could impact on the Group's turnover. the Board. Buying teams attend trade shows and carry out store and factory
Failure to properly develop and protect brands could restrict growth, given visits to ensure that they are in touch with the latest consumer demands and
the Group's brand-led strategy. There is a balance to be struck in terms of trends. We have reduced our aim in terms of new products from 1,000 to 600 to
the development of new products under our key brands. Development of many ensure a focused approach to bring high quality products to market. The Group
different products can produce poor quality new products, as product continues to hold a "second tier" of brands, as alternatives to use if
development uses resource. Therefore, it is important that the business inappropriate to use our premium brands.
focuses its development of products to bring a focused range of products to
market that enhance our brands. We have professionalised the use of our brands through the hiring of a brand
director. The Group aims to standardise and focus how we use our brands, to
both protect and enhance their value to the business. In the current year we
have invested in the rebranding of Salter and have begun with the rebrand of
Beldray.
Climate Change & Environmental Climate change is a widely acknowledged global emergency, with the need to act We have established a Group-wide ESG Committee to extend oversight and UP
faster becoming evident. Managing the greenhouse gas emissions associated with governance for monitoring the delivery of the Group's climate commitments. We
our supply chain is critical to reducing our impact on climate change. The have stated a strong commitment to be Net Zero by 2050. This pledge is in the
physical and financial impacts of climate change are already being felt and process of being supported by road maps and targeted decarbonisation plans. We
are set to intensify. As it becomes increasingly likely that targets set by are working internally and with third-party organisations in developing this
intergovernmental bodies will be missed, the long-term risk for our business suite of metrics to enable us to monitor progress. We also continue to report
continues to increase despite the mitigating actions we are taking. our climate-related financial disclosures. To incentivise the buying teams,
ESG elements have been added to the bonus targets in the current year.
Legal and regulatory Failure to comply with legal and regulatory requirements, including The Board monitors the changing landscape of laws and regulations. New legal LEVEL
environmental and climate change developments, both in the UK and in other and regulatory requirements are discussed by the Audit and Risk Committee
countries in which the Group operates, could result in fines or an adverse whose members contribute insight and experience of such matters. External
impact on the Group's reputation. technical and consulting expertise is sought when required. The Group has
procedures for ensuring ongoing compliance with legal obligations, including
external annual audits, and runs a programme of new-starter/refresher annual
training.
Human Failure to attract and retain high-quality individuals, both in the UK and The Group's Graduate Development Scheme, along with links to local LEVEL
resources internationally, could impact on the delivery of the Group's strategy. universities, provides a steady inflow of high-quality staff to support the
future growth of the Group, whilst the Group's Senior Management Development
Programme and its 'Introduction to Leadership' courses aim to create a
succession of employees into senior roles. Steps are taken to encourage the
retention of the employees, including the SAYE and PSP share ownership schemes
to incentivise its workforce and to further improve retention.
Cyber security Risk of cybercrime with the potential to cause operational disruption, loss or The Group continues to review and invest, where appropriate, in the LEVEL
theft of information, inability to operate effectively, loss of online sales development and maintenance of its IT infrastructure, systems and security. An
or reputational damage. external IT security audit is carried out on an annual basis to ensure that
any weaknesses in our systems are identified and can be rectified. New
employees receive IT training to increase awareness of cyber risk. Disaster
recovery, business continuity and crisis communication plans are maintained.
For more information, please contact:
Ultimate Products +44 (0) 161 627 1400
Andrew Gossage, CEO
Chris Dent, CFO
Shore Capital +44 (0) 20 7408 4090
Malachy McEntyre (Corporate Broking)
Isobel Jones (Corporate Broking)
Mark Percy (Corporate Advisory)
David Coaten (Corporate Advisory)
Harry Davies-Ball (Corporate Advisory)
Cavendish Capital Markets Limited +44 (0)20 7220 0500
Carl Holmes (Corporate Finance)
Matt Goode (Corporate Finance)
Abigail Kelly (Corporate Finance)
Charlie Combe (ECM)
Sodali & Co +44 (0) 207 250 1446
Rob Greening
Sam Austrums
Oliver Banks
Notes to Editors
Ultimate Products is the owner of a number of leading homeware brands
including Salter (the UK's oldest houseware brand, established in 1760) and
Beldray (a laundry, floor care, heating and cooling brand that was established
in 1872). According to its market research, nearly 80% of UK households own at
least one of the Group's products.
Ultimate Products sells to over 300 retailers across 45 countries, and
specialises in five product categories: Small Domestic Appliances; Housewares;
Laundry; Audio; and Heating and Cooling. Other brands include Progress
(cookware and bakeware), Kleeneze (laundry and floorcare), Petra (small
domestic appliances) and Intempo (audio).
The Group's products are sold to a broad cross-section of both large national
and international multi-channel retailers as well as smaller national retail
chains, incorporating discount retailers, supermarkets, general retailers and
online retailers.
Founded in 1997, Ultimate Products employs over 370 staff, a significant
number of whom have joined via the Group's graduate development scheme, and is
headquartered in Oldham, Greater Manchester, where it has design, sales,
marketing, buying, quality assurance, support functions and warehouse
facilities across two sites. Manor Mill, the Group's head office, includes a
spectacular 20,000 sq ft showroom that showcases each of its brands. In
addition, the Group has an office and showroom in Guangzhou, China and in
Paris, France.
Please note that Ultimate Products is not the owner of Russell Hobbs. The
company currently has licence agreements in place granting it an exclusive
licence to use the "Russell Hobbs" trademark for cookware and laundry (NB this
does not include Russell Hobbs electrical appliances).
For further information, please visit www.upplc.com
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