REG - Ultimate Products - AUDITED RESULTS FOR THE YEAR ENDED 31 JULY 2025
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RNS Number : 0036F Ultimate Products PLC 28 October 2025
28 October 2025
Ultimate Products plc
("Ultimate Products", the "Company" or the "Group")
AUDITED RESULTS FOR THE YEAR ENDED 31 JULY 2025
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 its audited results for the financial year ended 31 July 2025
("FY25", or the "Year"), which are in line with market expectations.
Financial highlights
· Total revenue down 3%, or £5.4m, to £150.1m (FY24: £155.5m),
reflecting:
o Anticipated reduction in air-fryer sales of £4.8m, down 32%
o Reduction in third-party close-out sales of £8.8m, down 60%
o Increase in all remaining other sales of £8.2m, up 6%
· Gross profit down 14% to £34.8m (FY24: £40.5m), with gross margin
at 23.2% (FY24: 26.0%), impacted by £3.1m of additional shipping costs and a
change in sales mix
· Adjusted EBITDA* down 31% to £12.5m (FY24: £18.0m)
· Adjusted profit before tax* down 40% to £8.7m (FY24: £14.4m)
· Statutory profit before tax down 44% to £8.0m (FY24: £14.3m)
· Statutory EPS down 44% to 6.8p (FY24: 12.2p), with Adjusted EPS*
down 40% to 7.4p (FY24: 12.3p)
· Full year dividend per share of 3.70p (FY24: 7.38p) in line with
capital allocation policy of returning around 50% of post-tax profits to
shareholders through dividends
· Continued strong cash generation from operating activities of
£10.3m (FY24: £18.5m), representing an 82% operating cash conversion (FY24:
103%)
· Net bank debt/adjusted EBITDA* ratio of 1.1x (FY24: 0.6x),
marginally above the Group's targeted policy of 1.0x
Operational highlights
· Continued focus on strengthening the equity of our brands, which
account for 80% of sales and delivered 4% growth in the year
o This includes the brand transformation of Beldray (sales up 11%), with its
successful consumer launch having taken place in March 2025
o Sustained momentum in product development, exemplified by the Beldray
All-in-One Floor Cleaner, recently named a Which? Best Buy, and by the
successful launch of new Salter products including the Slushie Maker,
Crisp&Go and VertiCook
· Ongoing progress in driving Group productivity with a focus on
continuous improvement - highlighted by the implementation of new Product
Information Management ("PIM") software during the period, which has already
accelerated training times, reduced error rates and improved the quality of
product information
· Appointment of Andrew Milne and José Carlos González-Hurtado as
Non-Executive Directors, bringing a track record of success and valued
insights into both the UK and European consumer goods landscapes
· Post period end, five senior management promotions to key functions
at the highest levels of the business, strengthening the Operating Board and
C-Suite across commercial activities, supply chain, operations, products and
marketing
· Operational improvements and investments underway to enhance the
Group sales function
Current trading and outlook
Current trading remains in line with market expectations. While external
headwinds are likely to persist in the short term, the Board is confident that
the operational improvements underway will leave the business better
positioned over the medium and long term, helping it to capitalise on growth
opportunities in the UK and internationally as trading conditions improve.
Consideration of AIM listing
As noted in the Group's announcement on 13 August, the Board has reviewed
whether it would be in shareholders' best interests to change the Company's
listing venue from the London Stock Exchange's Main Market to AIM. The Board
has concluded that at the Company's current market capitalisation, the AIM
market would be the most suitable listing venue for the Group. The Board will
put this change of listing venue forward for shareholder approval at the AGM
on 12 December 2025. Further updates will be announced in due course.
Commenting on the results, Andrew Gossage, Chief Executive of Ultimate
Products, said:
"FY25 was a challenging year for consumer-facing businesses, with ongoing
macroeconomic pressures, elevated shipping costs and weak consumer demand
weighing on performance. This included an anticipated reduction in air-fryer
and third-party close-out sales, which together accounted for a large portion
of the decline in revenue. Notwithstanding the challenges faced, we are
pleased that our UP brands continued to deliver growth, reflecting the
effectiveness of our branded strategy and the commitment of our teams across
the business.
"We also made meaningful progress in strengthening the foundations of the
Group, including the implementation of a new Product Information Management
system, the promotion of five senior leaders into C-suite roles and a
programme of enhancements to our sales function that is already driving
positive change. Combined with the growing appeal of our brands and the scale
of opportunity we see in the UK and internationally, we remain as confident as
ever in our medium-to-long term prospects."
*Adjusted measures are before share-based payment expenses and non-recurring
items
**Financial summary, including consensus market expectations are set out below
FY24 (Actual) FY25 (Actual) FY26 (Consensus)
Revenue £155.5m £150.1m £137.7m
Adjusted EBITDA £18.0m £12.5m £9.9m
Adjusted EPS 12.3p 7.4p 5.2p
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 / Isobel Jones (Corporate Broking)
Mark Percy / David Coaten/ Harry Davies-Ball (Corporate Advisory)
Cavendish Capital Markets Limited + 44 (0)20 7220 0500
Matt Goode / Callum Davidson / Trisyia Jamaludin (Corporate Finance)
Matt Lewis (Corporate Broking)
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 in over 30 countries - spanning
discounters, supermarkets and general retailers, and ranging from large
national and international multi-channel retailers to smaller retail chains.
Its products are also available on Salter.com (https://salter.com/) and
Beldray.com (https://beldray.com/) , as well as major third-party online
marketplaces. The Group 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).
Founded in 1997, Ultimate Products 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 Paris, France. Ultimate Products employs over
300 staff and is certified as a Great Place to Work®. A significant number of
its employees joined via the Group's Graduate Development Scheme, one of the
biggest in the North West.
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 (http://www.upplc.com) .
BUSINESS REVIEW
Purpose & Strategy
In a challenging trading environment, businesses can lose sight of their core
strategy. However, despite tough operating conditions, we have remained
focused on the strategic development of the Group. Our purpose is clear: to
provide beautiful and more sustainable products for every home. We are
committed to developing and delivering outstanding branded products that
appeal to households across our key markets. At the same time, we ensure these
products are attractively priced - not only for consumers but also for our
retail partners, who can achieve margins equivalent to those of 'own label'
ranges.
Since our IPO in 2017, we have built the Group into a leading supplier of
quality branded housewares, selling to many UK retailers. What initially
attracts these retailers is the opportunity to sell attractively priced,
branded products that consumers want, while maintaining their desired retail
margin. However, it is Ultimate Products' continued focus on our highly
advanced operational capabilities that turns retailers from customers into
long-term strategic partners.
Sales (£000, FY17-25)
FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
£000 £000 £000 £000 £000 £000 £000 £000 £000
UP brand Air fryers - - - 1,545 1,699 5,747 25,671 14,962 10,178
Other UP brand sales 51,277 44,421 70,820 58,497 73,851 110,437 105,992 101,920 111,768
UP Brands 51,277 44,421 70,820 60,042 75,550 116,184 131,663 116,882 121,946
Licensed brands 24,535 20,762 30,252 37,575 45,219 20,165 16,458 12,059 14,376
3P close-out & own label 34,141 22,388 22,185 18,067 15,598 17,842 18,194 26,556 13,813
Total 109,953 87,571 123,257 115,684 136,367 154,191 166,315 155,497 150,135
Share of Sales (%, FY17-25)
FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
% % % % % % % % %
UP brand Air fryers 0% 0% 0% 1% 1% 4% 15% 10% 7%
Other UP brand sales 47% 51% 57% 51% 54% 72% 64% 65% 74%
UP Brands 47% 51% 57% 52% 55% 75% 79% 75% 81%
Licensed brands 22% 24% 25% 32% 33% 13% 10% 8% 10%
3P close-out & own label 31% 26% 18% 16% 11% 12% 11% 17% 9%
Total 100% 100% 100% 100% 100% 100% 100% 100% 100%
Our brands have driven the growth of our business, enabling us to transition
from a trading and sourcing business to a 'Home of Brands', with 80% of UK
households now owning at least one of our products. Revenue from our UP Brands
has more than doubled, rising from £51.3m in FY17 to £121.9m in FY25, and
these brands now account for 81% of total sales. However, the tables above
also show that this growth has stalled over the past three years.
The past few years have been exceptionally challenging for consumer-facing
businesses, with a range of headwinds holding back sales. Overstocking during
the COVID boom disrupted forward order books, the cost-of-living crisis
dampened consumer confidence, and many opted to save rather than spend. There
have, of course, been mitigating factors that have helped to offset these,
such as the surge in air fryer sales during FY23 and the availability of
third-party close-out parcels during FY24. However, over the past three years,
sales of our core UP brands have edged up only marginally, from £110.4m to
£111.8m. This modest increase underscores the difficulties of the past few
years for consumer-facing businesses; we have been running hard just to stand
still.
Indeed, in many areas we have been running twice as fast to deliver on our
continuous improvement agenda. For instance, our approach to branding has been
revolutionised by the appointment of Tracy Carroll as Brand Director.
Externally, this is most visible in the rebranding of Salter and Beldray,
underpinned by a fully refreshed brand strategy that puts the consumer first
in every decision. Together, these two British heritage brands boast over 400
years of history and exceptional consumer recognition, now accounting for 60%
of our sales. Internally, the focus has been on simplification: tighter brand
guidelines, and the use of robotic automation and AI to increase productivity.
This has enabled us to elevate the quality of our output, adopt a more
brand-led approach to design, and prioritise building brand equity as a driver
of sales volumes.
In addition, we have continued to invest in our systems, implementing Product
Information Management ("PIM") software to store, enrich and manage complex
product information. The PIM platform has already delivered tangible benefits
across multiple functions, including increased productivity, accelerated
training times, lower error rates and better-quality product information.
These productivity gains allow us more time for product development, which
enables us to bring even better innovations to market. In the current year, we
are particularly proud of three new Salter launches: the Slushie Maker, the
Crisp&Go and the VertiCook, each of which shows our ability to respond
quickly to demand and deliver products that resonate with consumers. UP's
clearest product achievement, however, has been the Beldray All-in-One Floor
Cleaner. It was recently named a Which? Best Buy ahead of products from Dyson
and Shark and was described as "a top performer that effortlessly handles
everything from muddy footprints to sticky jam". With a price point well below
premium-brand competitors, it is truly a beautiful product for every home. The
All-in-One Floor Cleaner is being rolled out in line with our 'test, repeat,
maximise' model, where products are trialled in smaller volumes before being
scaled up. The initial soft launch across Beldray.com and several leading
online retailers was a sell-out success, and the next phase will begin in
Spring 2026 to coincide with spring-clean promotional events.
We see this as just the beginning of what our enhanced systems can enable. Our
talented teams are fully embracing our new technologies, and we expect AI to
play an increasingly important role in driving further improvements. Looking
ahead, our next major, multi-year project will be the replacement of our
enterprise resource planning ("ERP") system. The current system is approaching
end-of-life, limiting both efficiency and automation potential. Upgrading it
will be a critical step in further enhancing our operational capabilities.
These enhancements have helped us drive meaningful productivity gains across
the business. Our key productivity metric is gross profit per colleague. In
the current year this has fallen, primarily due to increased shipping costs
impacting gross margin. However, revenue per colleague has continued to rise.
FY21 FY22 FY23 FY24 FY25
Sales Per Head (£) 429,049 430,897 452,078 467,490 484,665
Gross Margin Per Head (£) 94,937 104,862 112,856 117,667 109,106
The significant increase in productivity we've achieved will support enhanced
profitability as sales grow. The operational leverage gained through our
culture of continuous improvement means that any uplift in sales will have an
amplified effect on profitability. This reflects the hard work undertaken to
enhance operational efficiency across multiple business areas, including
supply chain, operations, products and marketing. While we remain mindful of
the challenging market, we believe there is scope to accelerate our sales
function and see clear opportunities to grow, both in the UK and
internationally.
In the UK, our only area of particularly high market penetration is in scales.
They are the core segment of our iconic Salter brand and, according to market
research, are found in 70% of consumers' homes. In our other chosen market
segments, we remain a challenger brand with significant potential and the
capability to grow market share. In Europe, we have an opportunity to expand
further. Although we are not a small player, with FY25 sales exceeding £50m,
our market share in Europe remains significantly lower than in the UK. Given
the relative size of the European market (population c.480m), the financial
upside of further European growth is considerable.
The Group's focus is now on replicating the improvements made in branding and
product development within its sales function. Several initiatives are already
underway, which we believe have the potential to drive improved financial
performance. We are not content with simply retaining market share in
challenging trading conditions; we are focused on enhancing our operational
capabilities to deliver growth. The changes we are making across sales fall
into four different strands:
· Human Capital
· Training & Development
· Use of Technology
· Management process
The changes in relation to human capital are directly related to the way in
which the business has changed over the years. We have moved from a sourcing
model, focused solely on product and price, to a branded model. Under this
approach, it is our brands, alongside product and price, that have become the
key driver of sales. This shift has elevated our business to become the Home
of Brands. To fully align with this model, our sales team must now harness a
passion not only for selling on product & price, but also on brand.
Our sales colleagues have deep experience and have delivered strong results
under our previous sourcing-led approach. As we continue our more
brand-centric strategy, we recognise the need to support them with regular
training to build on existing strengths and ensure everyone is equipped to
sell in this new context. We are therefore rolling out a comprehensive
training programme to refine capabilities and close any gaps. Our Buying teams
are supporting this with a refreshed approach to product training, including
interactive demonstrations, product launch days, competitor comparisons, user
trials and consumer insights.
We continue to invest heavily in technology, as demonstrated by the
introduction of the PIM platform and the work on our new ERP. The next phase
in this technological investment is the development of a Customer Relationship
Management system ("CRM"), an area that has historically limited progress
within our sales function. We have identified CRM as a key enabler, and our
new ERP system will include a standalone CRM module to improve productivity.
In the interim, our process development team has created a temporary CRM
solution to bridge the gap.
We have also made several senior management changes to invigorate our team,
strengthen decision-making and support our long-term growth ambitions. Simon
Showman, formerly Chief Commercial Officer, has assumed the role of President
and Founder, where he will focus on product development and the growth of our
strategically important European business. Additionally, we have promoted five
leaders to C-suite roles across key functions: Duncan Singleton (Chief
Commercial Officer), David Bloomfield (Chief Supply Chain Officer), Craig
Holden (Chief Operating Officer), Katie Maxwell (Chief Product Officer) and
Tracy Carroll (Chief Marketing Officer).
These promotions strengthen our Operating Board, bringing together a group of
talented leaders with a deep knowledge of the business. This team provides
strong leadership and management across all core functions. But it's not just
senior management that make a business - it's the energy and ability of all
our people. Our Graduate Development Scheme continues to foster future talent
and helps to drive the business. Indeed, we were delighted that, upon Katie
Maxwell's recent promotion, she became the first person to be promoted to the
C-suite having joined UP as a graduate. Our workforce is unafraid to challenge
the status quo, and this mindset is actively encouraged because it fuels our
culture of continuous improvement. Simply put, it is our people who give us
confidence that our strategy is the right one to drive the business forward.
Performance
2025 2024 Change Change
£'000 £'000 £'000 %
Revenue 150,135 155,497 (5,362) -3%
Cost of sales (115,288) (115,043) (245) 0%
Gross profit 34,847 40,454 (5,607) -14%
Administrative expenses (22,342) (22,432) 90 0%
Adjusted EBITDA 12,505 18,022 (5,517) -31%
Depreciation & amortisation (2,149) (2,191) 42 -2%
Finance expense (1,651) (1,381) (270) 20%
Adjusted profit before tax 8,705 14,450 (5,745) -40%
Tax expense (2,424) (3,820) 1,396 -37%
Adjusted profit after tax 6,281 10,630 (4,349) -41%
ERP implementation costs (640) - (640)
Share-based payment expense (16) (137) 121 -88%
Tax on adjusting items 182 34 148 434%
Statutory profit after tax 5,807 10,527 (4,720) -45%
Sales
During the year, Group revenues decreased 3% (£5.4m) to £150.1m (2024:
£155.5m), reflecting subdued consumer demand for general merchandise, with
many consumers prioritising saving over spending. Three key factors influenced
this performance:
· Fall in air-fryer sales of £4.8m, down 32%
· A reduction in third-party clearance sales of £8.8m, as
opportunities reduced following the end of overstocking, leaving the category
down 60% to £5.9m
· An £8.2m (6%) increase in all remaining sales
Channel & Territory
FY25 FY24 Change Change
£000 £000 £000 %
Supermarket 33,785 29,495 4,290 15%
Discounter 11,793 18,098 (6,305) -35%
Online 29,016 30,332 (1,316) -4%
Other 19,580 23,227 (3,647) -16%
UK by Channel 94,174 101,152 (6,978) -7%
Supermarket 13,265 15,914 (2,649) -17%
Discounter 31,575 26,896 4,679 17%
Online 3,699 3,642 57 2%
Other 7,422 7,893 (471) -6%
International by Channel 55,961 54,345 1,616 3%
Supermarket 47,050 45,409 1,641 4%
Discounter 43,368 44,994 (1,626) -4%
Online 32,715 33,974 (1,259) -4%
Other 27,002 31,120 (4,118) -13%
Total by Channel 150,135 155,497 (5,362) -3%
Ultimate Products' key channels to market are Supermarkets, Discounters and
Online, all of which the Group will seek to grow over the medium to long term,
both in the UK and internationally. The table above shows our revenue split by
channel and territory. However, the figures are distorted by the two
non-recurring factors noted above: the end of the air-fryer boom during Q1 and
the normalisation of third-party clearance activity. To provide a clearer
picture of trading performance, the table and commentary below strip out the
impact of these two items.
FY25 FY24 Change Change
£'000 £'000 £'000 %
Supermarket 29,506 23,345 6,161 26%
Discounter 10,673 16,281 (5,608) -34%
Online 26,722 25,622 1,100 4%
Other 16,980 18,744 (1,764) -9%
UK 83,881 83,992 (111) 0%
Supermarket 10,882 10,974 (92) -1%
Discounter 29,326 20,715 8,611 42%
Online 3,623 3,602 21 1%
Other 6,376 6,633 (257) -4%
International 50,207 41,924 8,283 20%
Supermarket 40,388 34,319 6,069 18%
Discounter 39,999 36,996 3,003 8%
Online 30,345 29,224 1,121 4%
Other 23,356 25,377 (2,021) -8%
Total (excluding Air Fryers and 3P close-out) 134,088 125,916 8,172 6%
Air Fryers 10,178 14,962 (4,784) -32%
Third-Party close-out 5,869 14,619 (8,750) -60%
Total 150,135 155,497 (5,362) -3%
Against subdued demand for consumer goods, it was pleasing to see sales to
Supermarkets return to growth, rising 18% (£6.1m) to £40.4m, despite overall
Group sales falling 3%. In the UK, this increase (26%) was driven by stronger
trading from our supermarket customers, who have been winning general
merchandise market share through their loyalty schemes. Disappointingly,
despite the end of the overstocking issues that previously held back orders
from German supermarkets, sales to international supermarkets remained flat at
£10.9m.
Overall sales to discounters increased 8% to £40.0m. However, there was a
marked difference in performance between Europe, which grew by 42% (£8.6m),
and the UK (down 34%), where we were impacted by a customer's decision to
concentrate on own label.
Online sales grew 4%, a modest increase that reflects generally subdued
consumer demand. However, a positive highlight has been the strong performance
of our own consumer-facing websites (salter.com & beldray.com), with their
combined sales up 51% to £2.1m. While our own websites will remain less
significant than the major e-commerce platforms, their success shows how we
are growing our brands and strengthening our relationships with the end
consumer.
A significant challenge during the period has come from some of our wider UK
customer base of smaller retailers. Among these customers, we have seen a
sales decline of 9% (£1.8m). These retailers are being affected by softer
consumer demand and mounting cost pressures.
Overall, UK sales excluding air fryers and clearance were flat, which was a
disappointing performance. Although this is against a backdrop of generally
subdued consumer demand, we still believe that our products and brands can
gain market share within our home market, where, except for our iconic Salter
scales, we are still a challenger. More pleasing is our progress in Europe,
where our sales performance has been driven by sales to European discounters,
which are up 42% to £29m during the period.
Brand
2025 2024 Change Change 2025 2024
£'000 £'000 £'000 % % %
Salter 52,004 56,354 (4,351) -8% 35% 36%
Beldray 37,979 34,184 3,795 11% 25% 22%
Progress 5,004 5,871 (867) -15% 3% 4%
George Wilkinson 7,193 1,536 5,657 368% 5% 1%
Petra 3,131 2,576 555 22% 2% 2%
Kleeneze 2,766 3,188 (422) -13% 2% 2%
Other proprietorial brands 13,869 13,173 697 5% 9% 8%
UP Brands 121,946 116,882 5,064 4% 81% 75%
Licensed brands (Russell Hobbs) 14,376 12,059 2,317 19% 10% 8%
Third -party clearance & own label 13,813 26,556 (12,743) -48% 9% 17%
Total 150,135 155,497 (5,362) -3% 100% 100%
80% of our revenue now comes from the brands we own, and around 60% comes from
our two principal brands: Salter (our scales and kitchen brand) and Beldray
(our laundry and floorcare brand). Between them, these two British heritage
brands have over 400 years of history and incredible consumer recognition.
Over the past year, we have refined the development of our brand portfolio in
a more strategic manner. This includes focusing our brand product development
on core categories, employing a more brand-led approach to design, and
concentrating our efforts on building brand equity, which we use to drive
sales volumes.
We are therefore encouraged by the 4% growth in sales of our UP brands to
£121.9m. These brands remain a key differentiator and the driver of long-term
value creation. Against this trend, Salter, our iconic scales and kitchen
brand, declined by 8% (£4.4m). However, this was due to the air fryer effect
(£4.8m), without which Salter would have seen flat sales. Although not a
decline, we still view this performance as disappointing, as excluding scales
(which have a higher market share in the UK), we believe that Salter continues
to have room to grow across both the UK and International markets in its
chosen products categories. Beldray, which benefitted from a significant
rebrand in the year, saw sales grow 11% (£3.8m) to £38.0m. Meanwhile, George
Wilkinson, a cookware brand used by discounters seeking a level of
exclusivity, experienced significant growth in the year as we expanded sales
with EU discounters.
Russell Hobbs-branded cookware remains popular in Germany and France, where
the brand is currently better known than Salter or Beldray. Sales in the
period increased as overstocking issues at German supermarkets eased.
Third-party close-out and own label sales declined 48% to £13.8m. As noted
earlier, third-party close-out fell by £8.8m, whereas own label fell by
£4.0m. Own label sales arise when retailers use our expertise to source
products which are then sold under the retailer's own-brand label. These sales
are non-core, as they do not build long-term relationships with customers or
consumers, and fell £4.0m in the period as a European retailer moved some of
its audio supply in-house.
Product
2025 2024 Change Change 2025 2024
£'000 £'000 £'000 % % %
Small Domestic Appliances 58,981 58,119 862 1% 39% 37%
Housewares 45,189 40,603 4,586 11% 30% 26%
Laundry 18,703 18,630 73 0% 12% 12%
Audio 12,786 15,160 (2,374) -16% 9% 10%
Third-party close-out 5,869 14,619 (8,750) -60% 4% 9%
Others 8,607 8,366 241 3% 3% 3%
Total 150,135 155,497 (5,362) -3% 100% 100%
Our passion is product. By sourcing appealing branded products at prices that
resonate with both our customers and end consumers, we have successfully grown
our top line over the past ten years. We maintain a diversified product
portfolio across multiple brands and categories, ensuring we are not overly
reliant on any single product type or consumer trend, though we do concentrate
product development around key areas.
Each year, we develop and aim to bring to market around 600 new products. This
refresh brings exciting innovations to consumers and allows us to reset
margins where cost structures have changed. Product development is an
investment in the future and we must maximise the return on that
investment. One of the benefits of selling internationally and online is the
extension of product life cycles, as product lines can be sold to new
consumers through these different channels. This enables us to tighten our
product development process, focusing on a refined number of higher-quality,
more innovative products, supported by a better-branded and more focused
marketing strategy.
It was encouraging to see a return to growth in our Small Domestic Appliances
(SDA) category. Modest growth of £0.9m (1%) was achieved despite the
anticipated impact of air fryer sales, which declined by £4.8m. Housewares
also returned to growth, up 11%, reflecting a resurgence in cookware sales
after several years of overstocking.
The Group's strategy remains focused on our core product areas rather than
subscale categories. In line with this, the most significant percentage
decline was in 'third-party close-out', which fell £8.8m due to fewer
opportunities. In addition, Audio decreased by 16% where one of our European
retail customers chose to in-source some of their own label equipment.
Operating Margins
Gross margin decreased to 23.2% (2024: 26.0%), primarily due to an overall
increase in freight charge of £3.1m. This is the absolute increase in freight
charge year-on-year and can be split into two components. First, freight rates
were elevated over the course of CY2024, driven by global capacity constraints
following the closure of the Red Sea to international shipping. These higher
rates led to an additional £2.0m shipping cost for the Year. Second, the
expected benefit of the normalisation of rates during the second half of the
year was tempered by the sales mix. Third-party clearance sales occur when we
buy stock that has already been landed in Europe by other suppliers, meaning
these sales do not have a high freight component. Therefore, the higher sales
mix towards our own goods from China (which grew by 11% in H2) caused the
absolute level of freight to increase. Gross margin was also impacted by the
change in sales mix. Although third-party close-out sales are poor quality of
earnings for the long term due to their one-off nature, they tend to be at a
higher gross margin. In addition, sales to larger retailers such as big
supermarkets and discounters tend to be at lower margin because of higher unit
volumes.
Administrative expenses remained steady at £22.3m (2024: £22.4m).
People-related costs were down 1% to £15.6m, despite a 6.2% increase in
average cost per employee. This reflects both the externally imposed
inflationary effects of the National Living Wage increase and the rise in
employer National Insurance contributions (£100k for the current year, with a
full-year effect of £300k), as well as our own commitment to employee
remuneration designed to attract and retain talent. This approach supports
productivity within the business, enabling us to reduce headcount by 6% to an
average FTE of 347 (2024: 368). Our continued investment in robotic process
automation and AI helps to mitigate cost pressures but also increases our
level of future operational leverage.
The combination of a 3.4% fall in revenues, the gross margin impact of an
additional £3.1m of freight costs, and flat overheads has led to a 31% fall
in adjusted EBITDA to £12.5m (2024: £18.0m), with our adjusted EBITDA margin
slipping from 11.6% to 8.3%.
Adjusted & statutory profit
Depreciation and amortisation decreased marginally by 2% to £2.1m (2024:
£2.2m). The finance charge increased by 20% to £1.7m (2024: £1.4m) as a
result of higher average net debt across the year, which was £19.2m in 2025
compared with £13.7m in 2024. Around £0.2m of the charge relates to fixed
debt-related costs and imputed interest charges on capitalised lease
liabilities. As a result, adjusted profit before tax decreased 40% to £8.7m
(2024: £14.5m). The tax charge for the year was 27.9% (FY24: 26.4%), higher
than the UK statutory rate of 25% due to the higher rate of tax paid on our
European foreign branches.
During the period the Group embarked on the replacement of its core ERP
system. The current system is reaching end-of-life, limiting its efficiency
and automation potential. Upgrading it will be a critical step in further
enhancing our operational capabilities. We currently estimate that the costs
of implementing this system change will be in the region of £2m and will be
expensed in the period in which they occur. It is currently expected that the
new system will launch during FY27. In the current period, we expended £640k
in relation to the project (2024: £nil). These costs have been shown
separately in the Income Statement to better reflect the performance of the
underlying business.
Earnings per share
As a result of our ongoing share buyback scheme the number of shares in issue
has decreased from 88,628,572 at 31 July 2024 to 86,330,132 at 31 July 2025,
with the weighted average number of shares decreasing 2% to 87,478,678 (31
July 2024: 89,213,704).
2025 EPS 2024 EPS
£'000 p £'000 p
Adjusted profit after tax / Adjusted EPS 6,281 7.4 10,630 12.3
Exceptional items (640) (0.8) - -
Share-based payment expense (16) (0.0) (137) (0.2)
Tax on adjusting items 182 0.2 34 0.0
Statutory profit after tax / Basic EPS 5,807 6.8 10,527 12.2
As a result, adjusted profit after tax decreased 41% and adjusted earnings per
share decreased by 40%. Statutory profit after tax decreased 45% and statutory
earnings per share decreased by 44%.
Financing and cash flow
The Group generated £10.3m of cash from operating activities (2024: £18.5m),
representing an operating cash conversion of 82%. During the year, we saw an
increase in the level of investment in working capital of £2.4m. Overall,
stock levels have fallen year-on-year. However, the level of stock that has
been paid for has increased marginally.
2025 2024 Change Change
£'000 £'000 £'000 %
Sold Stock 13,500 11,967 1,533 13%
Free Stock 10,152 10,724 (572) -5%
Goods in Transit 8,800 13,887 (5,087) -37%
Total Stock 32,452 36,578 (4,126) -11%
Goods-in-Transit reached a peak last year due to the closure of the Red Sea.
In addition, the Group has seen an increase in the level of Sold Stock, which
is stock that has been brought in on behalf of one of our larger customers who
place orders 6-9 months ahead of delivery. Free Stock, which is stock that the
Group brings into the country to sell direct to consumers and smaller retail
customers, has remained stable.
As a result, at the year end the Group had a net bank debt/adjusted EBITDA
ratio of 1.1x (2024: 0.6x), which represents net bank debt of £14.1m (2024:
£10.4m). During the year, the Group sees significant movements in its working
capital requirement due to the timings of customer orders. As such, a longer
view can be helpful when considering the level of gearing within the business,
with the 12-month rolling average ratio of net bank debt/adjusted EBITDA being
1.3x (2024: 0.7x).
2025 2024 Change Change
£'000 £'000 £'000 %
Cash 4,063 4,733
RCF/Overdraft (6,367) (4,791)
Invoice Discounting (6,825) (8,765)
Import Loans (5,042) (1,668)
Debt Issue Costs 60 73
Net bank debt (14,111) (10,418) (3,693) -35%
Capital Allocation Policy
It is the Board's intention to maintain the net bank debt/adjusted EBITDA
ratio at around 1.0x, with the debt being used to fund the Group's working
capital. The Board believes that this level of leverage is an efficient use of
the Group's balance sheet and allows for further returns of capital to
shareholders. The Board also intends to continue investing in the business for
growth while returning around 50% of post-tax profits to shareholders through
dividends, and to supplement this with share buybacks pursuant to a policy of
maintaining net bank debt at around 1.0x adjusted EBITDA ratio.
The Group returned £2.6m of cash to shareholders through the share buyback
(2024: £1.1m). As we are currently above this level at 1.1x adjusted EBITDA,
the buyback is currently paused.
In line with our policy, the Board is proposing a final dividend of 2.15p per
share (FY24: 4.93p per share), resulting in a total dividend for the year of
3.7p per share (FY24: 7.38p per share). Subject to shareholder approval at the
AGM on 12 December 2025, the final dividend will be paid on 30 January 2026 to
shareholders on the register at the close of business on 5 January 2026
(ex-dividend date 2 January 2026).
Consolidated Income Statement
For the year ended 31 July 2025
2025 2024 £'000
£'000
Revenue 150,135 155,497
Cost of sales (115,288) (115,043)
Gross profit 34,847 40,454
Adjusted earnings before interest, tax, depreciation, amortisation, 12,505 18,022
share-based payments & non‑recurring items ('Adjusted EBITDA')
Depreciation and loss on disposal of fixed assets (2,104) (2,169)
Amortisation of intangibles (45) (22)
Share-based payment expense (16) (137)
ERP implementation costs (640) -
Total administrative expenses (25,147) (24,760)
Operating profit 9,700 15,694
Finance expense (1,651) (1,381)
Profit before tax 8,049 14,313
Tax expense (2,242) (3,786)
Profit for the year attributable to equity holders of the Company 5,807 10,527
All amounts relate to continuing operations
Earnings per share
Basic 6.8 12.2
Diluted 6.7 12.0
Consolidated Statement of Comprehensive Income
For the year ended 31 July 2025
2025 2024
£'000 £'000
Profit for the year 5,807 10,527
Items that may subsequently be reclassified to the income statement
Fair value movements on cash flow hedging instruments (1,910) (1,108)
Hedging instruments recycled through the income statement at the end of 564 1,605
hedging relationships
Deferred tax relating to cashflow hedges 335 (123)
Items that will not subsequently be reclassified to the income statement
Foreign currency translation - -
Other comprehensive (loss)/income (1,011) 374
Total comprehensive income for the year attributable to the equity holders of 4,796 10,901
the Company
Consolidated Statement of Financial Position
At 31 July 2025
2025 2024
£'000
£'000
Assets
Intangible assets 37,072 36,981
Property, plant and equipment 5,800 7,574
Total non-current assets 42,872 44,555
Inventories 32,452 36,578
Trade and other receivables 26,779 29,710
Derivative financial instruments 47 667
Current tax 20 -
Cash and cash equivalents 4,063 4,733
Total current assets 63,361 71,688
Total assets 106,233 116,243
Liabilities
Trade and other payables (29,735) (39,084)
Derivative financial instruments (1,828) (996)
Current tax - (105)
Borrowings (18,174) (15,151)
Lease liabilities (821) (811)
Total current liabilities (50,558) (56,147)
Net current assets 12,803 15,541
Deferred tax (6,678) (6,898)
Lease liabilities (2,601) (3,436)
Total non-current liabilities (9,279) (10,334)
Total liabilities (59,837) (66,481)
Net assets 46,396 49,762
Equity
Share capital 216 221
Share premium 14,334 14,334
Capital redemption reserve 7 2
Employee Benefit Trust reserve (2,071) (1,946)
Share-based payment reserve 1,376 1,431
Hedging reserve (1,297) (286)
Retained earnings 33,831 36,006
Equity attributable to owners of the Group 46,396 49,762
Consolidated Statement of Changes in Equity
For the year ended 31 July
Share capital Capital redemption reserve Share premium EBT reserve Share-based payment reserve Hedging Retained Total
reserve
earnings
Equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
As at 1 August 2023 223 - 14,334 (1,989) 1,817 (660) 32,414 46,139
Profit for the year - - - - - - 10,527 10,527
Foreign currency retranslation - - - - - - - -
Cash flow hedging movement - - - - - 497 - 497
Deferred tax movement - - - - - (123) - (123)
Total comprehensive income for the year - - - - - 374 10,527 10,901
Transactions with shareholders:
Dividends payable - - - - - - (6,411) (6,411)
Share-based payments charge - - - - 137 - - 137
Deferred tax on share-based payments - - - - - - 140 140
Transfer of reserve on exercise of share award - - - - (523) - 523 -
Transfer of shares by the EBT to employees on exercise of share award - - - 692 - - (187) 505
Purchase of own shares by the EBT - - - (649) - - - (649)
Share buy-back (2) 2 - - - - (1,000) (1,000)
As at 31 July 2024 221 2 14,334 (1,946) 1,431 (286) 36,006 49,762
Profit for the year - - - - - - 5,807 5,807
Foreign currency retranslation - - - - - - - -
Cash flow hedging movement - - - - - (1,346) - (1,346)
Deferred tax movement - - - - - 335 - 335
Total comprehensive income for the year - - - - - (1,011) 5,807 4,796
Transactions with shareholders:
Dividends payable - - - - - - (5,513) (5,513)
Share-based payments charge - - - - 16 - - 16
Deferred tax on share-based payments - - - - - - (87) (87)
Transfer of reserve on exercise of share award - - - - (71) - 71 -
Transfer of shares by the EBT to employees on exercise of share award - - - 200 - - (144) 56
Purchase of own shares by the EBT - - - (325) - - - (325)
Share buy-back (5) 5 - - - - (2,309) (2,309)
As at 31 July 2025 216 7 14,334 (2,071) 1,376 (1,297) 33,831 46,396
Consolidated Statement of Cash Flows
For the year ended 31 July
2025 2024
£'000
£'000
Net cash flow from operating activities
Profit for the year 5,807 10,527
Adjustments for:
Finance costs 1,651 1,381
Income tax expense 2,242 3,786
Depreciation 2,101 2,165
Amortisation 45 22
Loss on disposal of non-current assets 3 4
Derivative financial instruments 118 190
Share-based payments 16 137
Working capital adjustments
Decrease/(increase) in inventories 4,126 (8,507)
Decrease/(increase) in trade and other receivables 2,931 (207)
(Decrease)/increase in trade and other payables (9,398) 9,048
Net cash from operations 9,642 18,546
Income taxes paid (2,341) (3,176)
Cash generated from operations 7,301 15,370
Cash flows used in investing activities
Purchase of intangible assets (136) -
Purchase of property, plant and equipment (330) (1,300)
Net cash used in investing activities (466) (1,300)
Cash flows used in financing activities
Purchase of own shares (269) (144)
Share buy-back (2,309) (1,000)
Proceeds from borrowings 3,374 6,341
Repayment of borrowings (364) (11,071)
Principal paid on lease obligations (822) (838)
Debt issue costs paid (74) (137)
Dividends paid (5,513) (6,411)
Interest paid (1,527) (1,186)
Net cash used in finance activities (7,504) (14,446)
Net decrease in cash and cash equivalents (669) (376)
Exchange (losses)/gains on cash and cash equivalents (1) 23
Cash and cash equivalents brought forward 4,733 5,086
Cash and cash equivalents carried forward 4,063 4,733
Reconciliation of cash flow to the Group net debt position
Overdraft Term Loan RCF Invoice discounting £'000 Import loans £'000 Loan Fees Leases Total liabilities from financing activities Cash Net debt
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
At 1 August 2023 (5,004) (6,000) - (8,950) - 73 (5,098) (24,979) 5,086 (19,893)
Financing cash flows 213 6,000 - 185 (1,668) 137 838 5,705 - 5,705
Other cash flows - - - - - - - - (376) (376)
Other changes - - - - - (137) 13 (124) 23 (101)
At 31 July 2024 (4,791) - - (8,765) (1,668) 73 (4,247) (19,398) 4,733 (14,665)
Financing cash flows 3,424 (5,000) 1,940 (3,374) 74 822 (2,114) - (2,114)
Other cash flows - - - - - - - - (669) (669)
Other changes - - - - - (87) 3 (84) (1) (85)
At 31 July 2025 (1,367) - (5,000) (6,825) (5,042) 60 (3,422) (21,596) 4,063 (17,533)
Notes to the Financial Statements
1. General information
Ultimate Products plc (`the Company') and its subsidiaries (together the
'Group') is a supplier of branded, value-for-money household products to
global markets. The Company is a public limited company, which is listed on
the London Stock Exchange and incorporated and domiciled in England and Wales.
The address of its registered office is Ultimate Products plc, Manor Mill,
Victoria Street, Chadderton, Oldham OL9 0DD.
The financial information set out above does not constitute the Company's
statutory accounts for the years ended 31 July 2025 or 2024 but is derived
from those accounts. Statutory accounts for Ultimate Products plc for the
year ended 31 July 2024 have been delivered to the Registrar of Companies and
those for the year ended 31 July 2025 will be delivered following the
Company's annual general meeting. The auditors have reported on those
accounts; their reports were unqualified and did not include references to any
matters to which the auditors drew attention by way of emphasis without
qualifying their reports. Their reports for the year ended 31 July 2025 and
31 July 2024 did not contain statements under s498 (2) or (3) of the Companies
Act 2006.
2. Basis of preparation
The Financial Statements have been prepared in accordance with UK adopted
international financial reporting standards. The consolidated Group Financial
Statements and Company Financial Statements are presented in Sterling and
rounded to the nearest thousand unless otherwise indicated. The Financial
Statements are prepared on the historical cost basis, except for certain
financial instruments and share-based payments that have been measured at fair
value. The Directors have taken advantage of the exemption available under
Section 408 of the Companies Act 2006 and have not presented an income
statement or a statement of comprehensive income for the Company alone.
Going Concern
The Directors have adopted the going concern basis in preparing these accounts
after assessing the principal risks and having considered the impact of severe
but plausible downside scenarios, including pandemic type restrictions, supply
chain issues and demand led falls in revenue due to inflation and rises in
interest rates. The Directors have considered a number of impacts on sales,
profits and cash flows, taking into account experiences learnt from previous
business interruptions. The Directors have considered the resilience of the
Group in severe but plausible scenarios, taking account of its current
position and prospects, the principal risks facing the business, how these are
managed and the impact that they would have on the forecast financial
position. In assessing whether the Group could withstand such negative
impacts, the Board has considered cash flow, impact on debt covenants and
headroom against its current borrowing facilities. At the year end the Group
had a net bank debt/adjusted EBITDA ratio of 1.1x (FY24: 0.6x), which
represents net bank debt of £14.1m (FY24: £10.4m). The Group maintains
comfortable levels of headroom within its bank facilities, with headroom at 31
July 2025 of £11.8m (FY24: £16.4m). The Group's banking facilities comprise
a revolving credit facility of £5.0m (FY24: £8.2m), an import loan facility
of £12.0m (FY24: £12.0m), and an invoice discounting facility with a total
limit of £25.0m (FY24: £23.5m).
The Group's projections show that the Group will be able to operate within its
existing banking facilities and covenants. Therefore, the Directors have a
reasonable expectation that the Group has adequate resources to continue in
operational existence for at least 12 months from the date of approval of
these Financial Statements and, as a result, they have applied the going
concern principle in preparing its consolidated and Company Financial
Statements.
Non-recurring item - ERP implementation cost
Operating profit is stated after costs of £640,000 (2024: £Nil) in relation
to the commencement of a project to replace the Group's Enterprise Resource
Planning ('ERP') application with a new cloud-based system, a two-year
programme expected to go live in 2027. These costs have been shown separately
in the Income Statement in order to better reflect the performance of the
underlying business.
3. Revenue
2025 2024
£'000
£'000
Geographical split by location:
United Kingdom 94,174 101,152
Europe 53,804 52,990
Rest of the World 2,157 1,355
Total 150,135 155,497
International sales 55,961 54,345
Percentage of total revenue 37% 35%
2025 2024
£'000
£'000
Analysis of revenue by brand:
Salter 52,004 56,354
Beldray 37,979 34,184
George Wilkinson 7,193 1,536
Progress 5,004 5,871
Petra 3,131 2,576
Kleeneze 2,766 3,188
Other proprietorial brands 13,869 13,173
UP brands 121,946 116,882
Licensed brands (Russell Hobbs) 14,376 12,059
Third-party clearance and own label 13,813 26,556
Total 150,135 155,497
2025 2024
£'000
£'000
Analysis of revenue by product:
Small domestic appliances 58,981 58,119
Housewares 45,189 40,603
Laundry 18,703 18,630
Audio 12,786 15,160
Clearance 5,869 14,619
Heating and cooling 3,611 3,028
Others 4,996 5,338
Total 150,135 155,497
Analysis of revenue by sales channel: 2025 2024
£'000
£'000
Supermarkets 47,050 45,409
Discount retailers 43,368 44,994
Online channels 32,715 33,974
Other 27,002 31,120
Total 150,135 155,497
4. Finance costs
2025 2024
£'000
£'000
Interest on bank loans and overdrafts 1,502 1,138
Interest on lease liabilities 200 242
Foreign exchange in respect of lease liabilities (net of hedging actions) (8) 13
Other interest payable and similar charges (43) (12)
Total finance cost 1,651 1,381
5. Taxation
2025 2024
£'000
£'000
Current period - UK corporation tax 1,859 3,031
Adjustments in respect of prior periods 69 243
Foreign current tax expense 286 394
Total current tax 2,214 3,668
Origination and reversal of temporary differences (16) 226
Adjustments in respect of prior periods 44 (108)
Total deferred tax 28 118
Total tax charge 2,242 3,786
Factors affecting the tax charge
The tax assessed for the current and previous period is higher than the
standard rate of corporation tax in the UK. The tax charge for the year can be
reconciled to the profit per the income statement as follows:
2025 2024
£'000 £'000
Profit before tax 8,049 14,313
Tax charge at 25% 2,012 3,578
Adjustments relating to underlying items:
Adjustment to tax charge in respect of prior periods 113 135
Effects of expenses not deductible for tax purposes 63 53
Impact of overseas tax rates 54 20
Adjustments relating to non-underlying items:
Effects of expenses not deductible for tax purposes 4 34
Differences arising on tax treatment of shares (4) (34)
Total tax expense 2,242 3,786
Corporation tax is calculated at 25% (2024: 25%) of the estimated assessable
profit for the year, being the average effective tax rate in the year.
Deferred tax balances at the year-end have been measured at 25%.
6. Earnings per share
Basic earnings per share is calculated by dividing the net income for the
period attributable to ordinary equity holders by the weighted average number
of ordinary shares outstanding during the period. Diluted earnings per share
amounts are calculated by dividing the profit attributable to owners of the
parent by the weighted average number of ordinary shares in issue during the
financial year, adjusted for the effects of potentially dilutive options. The
dilutive effect is calculated on the full exercise of all potentially dilutive
ordinary share options granted by the Group, including performance-based
options which the Group considers to have been earned. The calculations of
earnings per share are based upon the following:
2025 2024
£'000
£'000
Profit for the year 5,807 10,527
Number Number
Weighted average number of shares in issue 87,478,678 89,213,704
Less shares held by the UPGS EBT (2,497,631) (2,657,123)
Weighted average number of shares - basic 84,981,047 86,556,581
Share options 1,393,056 974,498
Weighted average number of shares - diluted 86,374,103 87,531,079
Pence Pence
Earnings per share - basic 6.8 12.2
Earnings per share - diluted 6.7 12.0
7. Dividends
2025 2024
£'000
£'000
Final dividend paid in respect of the previous year 4,208 4,289
Interim declared and paid 1,305 2,122
5,513 6,411
Per share Pence Pence
Final dividend paid in respect of the previous year 4.93 4.95
Interim declared and paid 1.55 2.45
6.48 7.40
The Directors propose a final dividend of 2.15p per share in respect of the
year ended 31 July 2025.
8. Bank borrowings
2025 2024
£'000
£'000
Overdrafts 1,367 4,791
Revolving credit facility 5,000 -
Invoice discounting 6,825 8,765
Import loans 5,042 1,668
Unamortised debt issue costs (60) (73)
Current 18,174 15,151
Total bank borrowings 18,174 15,151
Cash (4,063) (4,733)
Net bank borrowings 14,111 10,418
2025 2024
£'000
Contractual undiscounted maturities: £'000
In less than one year 14,171 15,224
Between one and two years - -
Between three and four years - -
Less: Unamortised debt issue costs (60) (73)
Total borrowings 14,111 15,151
Current bank borrowings include a gross amount of £6.8m (2024: £8.8m) due
under invoice discounting facilities, which are secured by an assignment of
and fixed charge over the trade debtors of Ultimate Products UK Limited.
Furthermore, current bank borrowings include an amount of £5.0m (2024:
£1.7m) due under an import loan facility, which is secured by a general
letter of pledge providing security over the stock purchases financed under
that facility. Bank borrowings are secured in total by a fixed and floating
charge over the assets of the Group. Total bank borrowings are net of £60,000
(2024: £73,000) of fees which are being amortised over the length of the
relevant facilities. Interest on bank borrowings is payable at a margin
ranging between 1.65% and 2.25% above the relevant bank reference rates. As
the liabilities are at a floating rate and there has been no change in the
creditworthiness of either of the counterparties, the Directors are of the
view that the carrying amount approximates to the fair value.
9. Financial instruments
The principal financial instruments used by the Group, from which financial
instrument risk arises, are as follows:
2025 2024
£'000
£'000
Trade receivables - held at amortised cost 25,779 28,507
Derivative financial instruments - carried at FVTOCI - 576
Derivative financial instruments - carried at FVTPL 47 91
Trade and other payables (27,666) (36,091)
Derivative financial instruments - carried at FVTOCI (1,729) (966)
Derivative financial instruments - carried at FVTPL (99) (30)
Borrowings - held at amortised cost (18,174) (15,151)
Lease liabilities - held at amortised cost (3,422) (4,247)
Cash and cash equivalents - held at amortised cost 4,063 4,733
Financial assets
The Group held the following financial assets at amortised cost:
2025 2024
£'000
£'000
Cash and cash equivalents - held at amortised cost 4,063 4,733
Trade receivables - held at amortised cost 25,779 28,507
29,842 33,240
Financial liabilities
The Group held the following financial liabilities, classified as other
financial liabilities at amortised cost:
2025 2024
£'000
£'000
Trade payables (22,529) 30,363
Borrowings (18,174) 15,151
Other payables (5,137) 5,728
Lease liabilities (3,422) 4,247
(49,262) 55,489
Derivative financial instruments
The Group held the following derivative financial instruments as financial
assets/(liabilities), classified as fair value through profit and loss on
initial recognition:
2025 2024
£'000
£'000
Derivative financial instruments - assets 47 667
Derivative financial instruments - liabilities (1,828) (996)
(1,781) (329)
The above items comprise the following under the Group's hedging instruments:
2025 2024
£'000
£'000
Foreign currency contracts (1,828) (544)
Interest rate swaps - 111
Interest rate caps 47 104
(1,781) (329)
Forward contracts
The Group mitigates the exchange rate risk for certain foreign currency trade
debtors and creditors by entering into forward currency contracts. At 31 July
2025, the Group was committed to:
2025 2024
Buy Sell Buy Sell
USD$'000 59,400 - 59,000 -
€'000 - 36,500 - 34,000
CAD$'000 - - - -
PLN'000 - 1,400 - -
CNY'000 2,592 - 4,483 -
At 31 July 2025 and 2024, all the outstanding USD, EUR, PLN and CAD contracts
mature within 12 months of the period end. The CNY contracts, which are held
as a partial hedge on a lease commitment, mature by August 2026. The forward
currency contracts are measured at fair value using the relevant exchange
rates for GBP:USD, GBP:EUR, GBP:CAD, GBP:PLN and GBP:CNY.
Forward currency contracts are valued using level 2 inputs. The valuations are
calculated using the period end forward rates for the relevant currencies,
which are observable quoted values at the period end dates. Valuations are
determined using the hypothetical derivative method, which values the
contracts based upon the changes in the future cash flows, based upon the
change in value of the underlying derivative. All of the forward contracts to
buy US Dollars and some of those to sell Euros meet the conditions for hedge
accounting. The fair value of forward contracts that are effective in
offsetting the exchange rate risk is a liability of £1,728,000 (2024:
liability of £564,000), which has been recognised in other comprehensive
income. This will be released to profit or loss at the end of the term of the
forward contracts as they expire, being £1,728,000 within 12 months (2024:
£564,000 within 12 months). The cash flows in respect of the forward
contracts will occur over the course of the next 12 months.
Interest rate swaps and interest rate caps
The Group has entered into interest rate swaps and interest rate caps to
protect the exposure to interest rate movements on the various elements of the
Group's banking facility. As at 31 July 2025, protection was in place over an
aggregate principal of £13.2m (2024: £8.9m).
At 31 July 2025, the Group had net bank borrowings of £0.9m (2024: £1.5m)
not subject to interest rate protection. All interest rate swaps meet the
conditions for hedge accounting.
Interest rate swaps and caps are valued using level 2 inputs. The valuations
are based upon the notional value of the swaps and caps, the current available
market borrowing rate and the swapped or capped interest rate respectively.
The valuations are based upon the current valuation of the present saving or
cost of the future cash flow differences, based upon the difference between
the respective swapped and capped interest rates contracts and the expected
interest rate as per the lending agreement.
The fair value of variable to fixed interest rate swaps that are effective in
offsetting the variable interest rate risk on variable rate debt is £Nil
(2024: £111,000 asset).
The fair value of the interest rate caps that are effective in offsetting the
variable interest rate risk on variable rate debt is an asset of £Nil (2024:
£64,000 asset), which has been recognised in other comprehensive income and
will be released to profit or loss over the term of the cap agreements. The
agreements expire between 2 August 2027 and 1 March 2028. The cash flows in
respect of the swaps occur monthly over the effective lifetime of the swaps.
Reconciliation of the financial instruments to the Statement of Financial
Position
2025 2024
£'000
£'000
Trade receivables 25,779 28,507
Prepayments and other receivables not classified as financial instruments 1,000 1,203
Trade and other receivables 26,779 29,710
2025 2024
£'000
£'000
Trade and other payables 27,666 36,091
Other taxes and social security not classified as financial instruments 2,069 2,993
Trade and other payables 29,735 39,084
The Group's activities expose it to certain financial risks: market risk,
credit risk and liquidity risk. The overall risk management programme focuses
upon the unpredictability of financial markets and seeks to minimise potential
adverse effects on the Group's financial performance. Risk management is
carried out by the Directors, who identify and evaluate financial risks in
close cooperation with key members of staff.
a. Market risk: Market risk is the risk of loss that may arise from
changes in market factors such as interest rates and foreign exchange rates.
b. Credit risk: Credit risk is the financial loss to the Group if a
customer or counterparty to financial instruments fails to meet its
contractual obligation. Credit risk arises from the Group's cash and cash
equivalents and receivables balances. Accordingly, the possibility of material
loss arising in the event of non-performance by counterparties is considered
to be unlikely. Cash at bank is held with banks with high-quality external
credit rating.
c. Liquidity risk: Liquidity risk is the risk that the Group will not
be able to meet its financial obligations as they fall due. This risk relates
to the Group's prudent liquidity risk management and implies maintaining
sufficient cash. The Directors monitor rolling forecasts of the Group's
liquidity and cash and cash equivalents based upon expected cash flow.
Market risk
The Group's interest-bearing liabilities relate to its variable rate banking
facilities. The Group has a policy of maintaining a portion of its banking
facilities under the protection of interest rate swaps and caps to ensure the
certainty of future interest cash flows and offering protection against
market-driven interest rate movements. The Group's market risk relating to
foreign currency exchange rates is commented on below.
Credit risk
The Group's sales are primarily made with credit terms, exposing the Group to
the risk of non-payment by customers. The Group has implemented policies that
require appropriate credit checks on potential customers before sales are
made. The amount of exposure to any individual counterparty is subject to a
limit, which is reassessed regularly by the Board. In addition, the Group
maintains a suitable level of credit insurance against its debtor book. Over
the course of FY25, on average, over 98% of its trade receivables were
insured. Sales to uninsured accounts are monitored closely with weekly
forecasts prepared and reviewed with appropriate actions to manage the
exposure to credit risk.
Liquidity risk management
The Group is funded by external banking facilities provided by HSBC. Within
these facilities, the Group actively maintains a mixture of long-term and
short-term debt finance that is designed to ensure the Group has sufficient
available funds for operations and planned expansions. Cash flow requirements
are monitored by short and long-term forecasts, with headroom against facility
limits and banking covenants assessed regularly.
Foreign currency risk management
The Group's activities expose it to the financial risks of changes in foreign
currency exchange rates. The Group's exposure to foreign currency risk is
partially hedged by virtue of invoicing a proportion of its turnover in US
Dollars and Euros. When necessary, the Group uses foreign exchange forward
contracts to further mitigate this exposure. The following is a note of the
financial instruments denominated at each period end in US Dollars:
2025 2024
$'000
$'000
Trade receivables 8,748 9,184
Other receivables - 85
Net cash and overdrafts 7,469 5,404
Import loans (6,673) (2,142)
Invoice discounting - 2,177
Trade payables (25,684) (33,425)
(16,140) (18,717)
The effect of a 20% strengthening of Sterling at 31 July 2025 on the foreign
denominated financial instruments carried at that date would, all variables
held constant, have resulted in an increase to total comprehensive income for
the period and an increase to net assets of £1.5m (2024: £1.8m). A 20%
weakening of the exchange rate, on the same basis, would have resulted in a
decrease to total comprehensive income and a decrease to net assets of
£2.3m (2024: £2.7m).
The following is a note of the financial instruments denominated at each
period end in Euros:
2025 2024
€'000
€'000
Trade receivables 11,039 12,566
Other receivables - 22
Net cash and overdrafts (1,454) (927)
Invoice discounting (8,786) (9,104)
Trade payables (1,096) (1,383)
Lease liabilities (165) (368)
(462) 806
The effect of a 20% strengthening of Sterling at 31 July 2025 on the foreign
denominated financial instruments carried at that date would, all variables
held constant, have resulted in an increase to total comprehensive income for
the period and an increase to net assets of £0.1m (2024: £0.1m decrease to
net assets). A 20% weakening of the exchange rate, on the same basis, would
have resulted in a decrease to total comprehensive income and a decrease to
net assets of £0.1m (2024: £0.1m increase to net assets).
The Directors have shown a sensitivity movement of 20% as, due to the current
uncertainty given the current economic climate, this is deemed to be the
largest potential movement in currency that could occur in the near future.
Financial instruments denominated in Canadian Dollars and Polish Zloty are not
significant and therefore do not pose a significant foreign exchange exposure.
Interest rate risk management
Interest rate risk is the risk of increased costs arising from movements in
interest rates impacting the Group's liabilities. Interest on financial
instruments is classified as fixed rate if interest resets on the instruments
are less frequent than once every 12 months. Interest on financial instruments
is classified as variable rate if interest resets on the instruments occur
every 12 months or more frequently.
All of the Group's bank borrowings are variable rate. The Group is exposed to
cash flow interest rate risk on its bank overdrafts, revolving credit
facility, invoice discounting and import loans to the extent that they are
used. The Group has interest rate caps to mitigate the exposure of interest
rate movements as described above. The Group's interest-bearing financial
assets and liabilities at the balance sheet date were as follows:
2025 2024
Fixed Variable £'000 Total Fixed Variable £'000 Total
£'000
£'000
£'000
£'000
Cash and cash equivalents - 4,063 4,063 - 4,733 4,733
Bank borrowings - (18,234) (18,234) - (15,224) (15,224)
- (14,171) (14,171) - (10,491) (10,491)
The Group considers that a 100 basis points movement in interest rates is a
reasonable measure of volatility. The effect on profit before tax of a 100
basis points increase in interest rates on the variable rate balances as at 31
July 2025 would be a reduction of £83,000 (31 July 2024: £65,000 reduction).
The effect on profit before tax of a 100 basis points decrease in interest
rates on the variable rate balances as at 31 July 2025 would be an increase of
£163,000 (31 July 2024: £101,000 increase).
Capital risk management
The Group is funded by equity and loans. The Group's objective when managing
capital is to maintain adequate financial flexibility to preserve its ability
to meet financial obligations, both current and long term. The capital
structure of the Group is managed and adjusted to reflect changes in economic
conditions. The Group funds its expenditure on commitments from existing cash
and cash equivalent balances, primarily received from existing bank facilities
and profits generated. There are no externally imposed capital requirements.
Financing decisions are made based upon forecasts of the expected timing and
level of capital and operating expenditure required to meet the Group's
commitments and development plans.
Fair value estimation
The carrying value less impairment provision of trade receivables and payables
are assumed to approximate to their fair values because of the short-term
nature of such assets and the effect of discounting liabilities is negligible.
The Group is exposed to the risks that arise from its financial instruments.
The policies for managing those risks and the methods to measure them are
described earlier in this note.
Maturity of financial assets and liabilities
All of the Group's non-derivative financial liabilities and its financial
assets at the reporting date are either payable or receivable within one year,
except for borrowings.
10. Share capital & reserves
Allotted, called up and fully paid 2025 2024 2025 2024
£'000
£'000
No. of shares
No. of shares
At 1 August 221 223 88,628,572 89,312,457
Share buy-backs (5) (2) (2,298,440) (683,885)
At 31 July 216 221 86,330,132 88,628,572
The 0.25p Ordinary Shares carry rights to dividends and other distributions
from the Company, as well as carrying voting rights.
Following approval at the General Meeting on 2 May 2024, the Company commenced
a share buy-back programme. During the year, the Company purchased 2,298,440
Ordinary Shares of 0.25p each (2024: 683,885 Ordinary Shares of 0.25p each) at
a total cost of £2.3m (2024: £1.0m), including costs of £23,000 (2024:
£10,000). The average price paid for these repurchased shares was 99 pence
per share (2024: 145 pence per share). The repurchased shares were cancelled
during the year.
11. Annual Report and Accounts
The annual report and accounts for the year ended 31 July 2025 will be posted
to shareholders in the week commencing 10 November 2025 and will be available
immediately thereafter on the Company's website at
https://www.upplc.com/investor-relations/financial-reports/
(https://upplc.com/investor-relations/financial-reports/)
12. Annual General Meeting
The Annual General Meeting of Ultimate Products Plc will be held on 12
December 2025 at the Company's registered office at Manor Mill, Victoria
Street, Chadderton, Oldham, OL9 0DD, notice of which will be sent to
shareholders with the annual report and accounts in the week commencing 10
November 2025.
13. Publication on website
A copy of this announcement and an investor presentation of these results
are available on the Company's website
at https://www.upplc.com/investor-relations/
(https://www.upplc.com/investor-relations/) .
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