REG - Ultimate Products - Interim Results
25/03/2025 07:00
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RNS Number : 9564B Ultimate Products PLC 25 March 2025
25 March 2025
Ultimate Products plc
("Ultimate Products", the "Company" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 JANUARY 2025
Continued focus on strategic priorities amid challenging UK trading conditions
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 interim results for the six months ended 31 January 2025 ("H1
2025").
Financial highlights
· H1 2025 Group revenue of £79.5m, down 6%
o UK revenue down 13% to £50.4m, while International revenue increased 12%
to £29.1m
o Weak UK consumer demand and the anticipated impact of lower air fryer
sales partially offset by encouraging international sales growth with strong
demand from European discounters (+39%), demonstrating the strength and
progress of the Group in this core strategic market
o Improving sales trend, with Q2 sales down 2.2% year-on-year, representing
an improvement on Q1 sales, which were down 9.3%
· Gross margin of 23.2% (H1 2024: 26.7%), impacted by £2.0m in
additional shipping costs due to elevated freight rates over the summer, which
have since normalised
· Operating costs well controlled, with administrative expenses up just
3% compared to H1 2024
· Adjusted EBITDA* down 38% to £7.0m (H1 2024: £11.3m), reflecting
the operational gearing of reduced sales
· Statutory profit before tax down 47% to £5.1m (H1 2024: £9.5m),
with Adjusted profit before tax* down 46% to £5.2m (H1 2024: £9.6m)
· Statutory EPS down 48% to 4.2p (H1 2024: 8.2p), with Adjusted EPS*
down 48% to 4.3p (H1 2024: 8.3p)
· Interim dividend per share down 37% to 1.55p (H1 2024: 2.45p) in line
with the company policy of returning around 50% of post-tax profits to
shareholders through dividends
· Net bank debt/adjusted EBITDA* ratio of 1.3x (31 July 2024: 0.6x),
with the 12-month rolling average ratio at 1.0x (31 July 2024: 0.7x)
· Cash generation from operating activities of £1.1m (H1 2024:
£14.4m), with increased investment in working capital following longer
shipping times caused by Red Sea disruption resulting in £9.4m of additional
inventory
*Adjusted measures are before share-based payment expenses and non-recurring
items
Operational highlights
· Continued focus on strengthening the equity of our premier brands,
which account for 80% of our sales and delivered a resilient performance in
the period, down only 1%
o This includes brand transformation of Beldray, with its consumer launch in
partnership with a major UK supermarket taking place in March 2025
· Enhanced European strategy, with demonstrable growth and strong
momentum across key sales channels during the period
· Ongoing progress in driving Group productivity with a focus on
continuous improvement, having implemented new Product Information Management
("PIM") software during the period
· Appointment of Andrew Milne and José Carlos González-Hurtado as
Non-Executive Directors, bringing valued insights into both the UK and
European consumer goods landscapes
Current trading and outlook
The Group is trading in line with revised market expectations for FY25. Strong
growth in Europe continues to be offset by weak UK trading, resulting in an
expected flat topline performance for the year, with sales forecast to return
to growth in H2. As we see the benefits of the normalisation of freight rates
and our use of automation offsets operational cost inflation, we expect to see
improved operating margins during the second half of the year, resulting in a
full-year adjusted EBITDA in line with market expectations.
Commenting on the results, Andrew Gossage, Chief Executive of Ultimate
Products, said:
"The UK trading environment has undoubtedly been challenging, and this has
inevitably impacted our H1 performance. However, growing traction in Europe,
driven by strong demand from discounters, continues to offset some of this
weakness and reinforces our view that we have significant growth opportunities
within that market. Our core brands of Salter and Beldray have been resilient
and remain central to our strategy, with a brand transformation of Beldray
underway to strengthen its market presence and broaden its appeal.
"We are confident that our strategy is delivering long-term benefits for the
business and continue to focus on operational excellence and efficiency. Our
ongoing investments in automation and AI are driving significant productivity,
enhancing our ability to serve customers. This exciting work is increasingly
being initiated by our graduates, who continue to astound with their
problem-solving ideas. By maintaining our strategic focus and continuing to
strengthen our position in Europe, we are well placed to drive sustainable
long-term growth."
Financial summary, including consensus market expectations immediately prior
to this announcement
FY24 (Actual) FY25 (Consensus)
Revenue £155.5m £155.0m
Adjusted EBITDA £18.0m £14.4m
Adjusted PBT £14.5m £11.1m
Adjusted EPS 12.3p 9.4p
For more information, please contact:
Ultimate Products +44 (0) 161 627 1400
Andrew Gossage, CEO
Chris Dent, CFO
Sodali & Co +44 (0) 207 250 1446
Rob Greening / Sam Austrums
Notes to Editors
Ultimate Products is the owner of a number of leading homeware brands
including Salter (https://salter.com/) (the UK's oldest houseware brand,
established in 1760) and Beldray
(https://beldray.com/?srsltid=AfmBOopzsBD1yRoD_JaLCWMm9HlvPbtJtu0rwTuNrwDwLi-sbekDRzHZ)
(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 38 countries, and
specialises in five product categories: Small Domestic Appliances; Housewares;
Laundry; Audio; and Heating and Cooling. 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 350 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
Group 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
(https://url.avanan.click/v2/___http:/www.upplc.com/___.YXAxZTpzaG9yZWNhcDphOm86NDA2ZGRkNGUzYzZiMGJkNzM2ZjhlOWMzYjljYTZmZWI6NjpiZGYyOjkxZjUxNGE0MjE5NTA5MTViMmU2MGU3ODRhZjg2YTc1MDFhMTRlMDJlZjExODU2YzFlZDk3NDgwYmI2NjRiZDY6cDpU)
.
BUSINESS REVIEW
We present the Interim Report for the six months ended 31 January 2025, a
period in which, against a challenging consumer and retailer environment in
the UK, we have remained focused on our strategic plans for long-term growth
and profitability while making tangible progress with our European strategy.
Trading
The fall in year-on-year sales can be largely attributed to the anticipated
impact of lapping the end of the air-fryer boom during Q1, with H1 air fryer
sales down 49% (£4.8m) to £4.9m.
H1 25 H1 24 Change
Air Fryer Other Total Air Fryer Other Total Air Fryer Other Total
£'000 £'000 £'000 £'000 £'000 £'000 % % %
UK 3,004 47,406 50,410 7,041 51,109 58,150 -57% -7% -13%
International 1,963 27,111 29,074 2,721 23,308 26,029 -28% 16% 12%
Total 4,967 74,517 79,484 9,762 74,417 84,179 -49% 0% -6%
In line with our strategic plans, international sales grew strongly, up 12% to
£29.1m. This was driven by a 39% increase in sales to European discounters,
reaching £14.0m. Growth in Europe is strategically important for the Group,
as our market penetration there remains significantly lower than in the UK.
Our ambition, on which we are making encouraging initial progress, is to grow
our market share in the sizable European market by leveraging our first-class
capabilities and our trusted UK brands.
In the UK, sales declined 13% in total, or 7% excluding air fryers. This
disappointing performance reflects the well-documented challenging trading
conditions in the UK market. Subdued consumer spending persisted throughout
calendar year 2024, defying expectations that a return to real wage growth
would reignite consumer demand.
Nonetheless, despite the challenging UK retail environment, we have seen
growth in certain key segments. During the period, sales to UK Supermarkets
rose by 5% (£0.8m) to £16.0m, as the overstocking that had previously held
back ordering subsided and loyalty schemes supported customer spending.
Clearance sales (sales of third-party close-out parcels rather than UP-branded
product), which grew strongly during FY24 as suppliers dealt with their
overstocks, have declined 22% (£1.3m) to £4.6m in the current period. While
tactically useful in opening doors with new customers, these sales are not
strategically important for long-term growth as they are inherently one-off.
As overstocking subsides, the opportunities associated with these sales
reduces.
The greatest challenge during the period has stemmed from some of our wider UK
customer base of smaller retailers. Among these customers, we have seen sales
decline rather than grow. These retailers are being affected by softer
consumer demand and mounting cost pressures, including recent changes to NI
taxation rates and increases in the National Living Wage. Although we mitigate
our balance sheet risk through credit insurance, the ongoing impact of weak
demand on our revenue remains. For example, in H1 FY24, we made sales of
£1.4m to customers who have since gone into liquidation.
Strategy
In a challenging trading environment, it is tempting for a business to lose
sight of its core strategy. However, we have continued to focus on our
strategic plans and make good progress toward our long-term priorities. Our
purpose remains clear: to provide beautiful and more sustainable products for
every home. We are focused on delivering outstanding branded products that
appeal to households across our key markets. In addition, we ensure these
products are attractively priced, not only for consumers but also for our
retail partners, who can earn an equivalent 'own label' margin with us.
Over the past 10 years, we have built the Group into a leading supplier of
quality branded housewares, selling to the majority of UK retailers. These
retailers are initially drawn to the opportunity to sell branded products that
consumers want while maintaining an 'own label' margin. However, it is our
continued focus on our highly advanced operational capabilities that turns
retailers from customers into strategic partners.
We firmly believe that our value proposition - built on price, product, brand
and capability - is as attractive to European retailers as it is to those in
the UK. However, this is not just a belief; it is demonstrated in our growing
strategic relationships, using our proven 'land-and-expand' approach. Although
we are not a small player in Europe, with sales exceeding £50m in FY24, our
market share in Europe remains significantly lower than in the UK. Given the
scale of the European market (population c.477m), we see significant growth
potential. Our European penetration is far below that of the UK (population:
c.67m), where we currently sell approximately £1.46 of product per capita. We
believe that a similar level of penetration in Europe is achievable in the
mid-term and would be transformational for our business.
H1 FY25 H1 FY24 Change Change
£000 £000 £000 %
Supermarket 7,985 7,457 528 7%
Discounter 15,082 13,300 1,782 13%
Online 2,021 2,009 12 1%
Other 3,987 3,263 724 22%
International Sales by Channel 29,075 26,029 3,046 12%
In the current period we have continued to see growth across Europe, with
sales increasing across our main sales channels, up 12% to £29.1m. This
growth has been driven by strong relationships with EU discounters.
Our marketing to retailers is built around showcasing our significant
operational capabilities, reinforced by our credentials as an established
supplier to both large UK and EU discounters. Internally, we have adopted the
mantra 'Europe first' to emphasise the importance of our European strategy to
all of our people. This is not to say that we believe in providing second rate
service to our UK customers, but rather acknowledges that, as a UK supplier,
we have more to learn about the European market. As a result, a more tailored
and focused approach is required to achieve the same level of operational
excellence as we do in the UK.
To strengthen our European capabilities, we have been fortunate to appoint
José Carlos González-Hurtado as a Non-Executive Director. His extensive
experience has already helped the team to refine their approach to product,
marketing, branding, and customer acquisition and retention.
The guiding principle across all our branding is 'Salter & Beldray first'.
Salter and Beldray are our two most significant brands. 80% of our revenue
comes from the brands we own, and 60% from our two principal brands, Salter
(our scales and kitchen brand) and Beldray (our laundry and floorcare brand).
Together, these two British heritage brands boast over 400 years of history
and exceptional consumer recognition.
We continue to focus our product development on core categories, adopting a
more brand-led approach to design and prioritising building brand equity to
drive sales volumes. In the current period, we have completed our relaunch of
the Beldray brand, repositioning it as a modern, bright and fun brand. The
consumer launch took place in March with an exclusive partner, supported by a
multi-channel marketing campaign to drive awareness, and fun, relatable
content to highlight how Beldray is here to help you with your everyday
mishaps (https://beldray.com/ (https://beldray.com/) ).
Our established British heritage brands provide credibility and build trust
with our target audience in Europe. Consumer research in France and Germany
into the perception of British brands has reinforced this, with results
showing that sentiment among both French and German consumers is extremely
positive, with reliability, trustworthiness and quality emerging as key
attributes for consumers in both countries. This feedback gives us confidence
in replicating our UK success as we expand in Europe.
While Salter and Beldray are our core brands, our portfolio includes
supporting brands that can serve the varying needs of our customers. In cases
where a retail customer seeks a level of brand exclusivity, we have
successfully leveraged both Petra and George Wilkinson to great effect. The
latter, a heritage cookware brand from Burnley, has seen strong growth through
sales to a Dutch discounter.
Our relationships with major retailers are underpinned by the excellence of
our service, which allows us to go the extra mile for them. This is made
possible by our impressive operational capability, which has been built around
our culture of continuous improvement.
At the heart of our culture of continuous improvement is the mindset of 'do
less, do it better'. At the most rudimentary level, doing 'less' may mean
challenging ourselves as to whether individual tasks are necessary, but it
also encapsulates a laser-focused approach to all that we do. 'Do it better'
can encompass a range of solutions, such as process change, robotic process
automation and AI. During the period, we have continued this journey and have
automated hundreds of low-skill, low-reward tasks, ultimately increasing the
ability of our workforce to focus on higher value activities. This exciting
work is increasingly being initiated by our graduates, who continue to astound
with their problem-solving ideas. By solving issues with automation, we are
able to increase productivity and improve accuracy. This results in a better
customer experience, helping to drive sales, with savings being reinvested in
price, quality and marketing spend.
During the period, we continued to invest in our systems, implementing Product
Information Management ("PIM") software to store, enrich and manage complex
product information. This has already delivered benefits across multiple
functions, including sales, buying, online, marketing, customer services,
sourcing and quality assurance. These benefits include increased productivity,
accelerated training times, lower error rates and better quality product
information. We see this as just the beginning, as our talented teams fully
embrace this new technology and use it to drive further enhancements, with AI
likely to play a key role.
Looking ahead, the next major, multi-year project will be the replacement of
our enterprise resource planning ("ERP") system. Our 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.
Over the past 10 years, our focus on productivity, operational efficiency and
capability has driven gross profit per colleague from £82k to £118k at the
end of FY24. However, in the current period, gross margin reduced by 18%,
while average headcount fell by 8% to 356 FTE (H1 2024: 389). As a result,
gross profit per colleague - a key KPI - fell to £103k per head. Despite
this, we expect the benefits of our efficiency initiatives to materialise as
freight rates continue to ease and UK sales return to growth, thereby
supporting increased profitability.
Performance
H1 FY25 H1 FY24 Change Change
£'000 £'000 £'000 %
Revenue 79,484 84,179 (4,695) -6%
Cost of sales (61,073) (61,816) 743 -1%
Gross profit 18,411 22,363 (3,952) -18%
Administrative expenses (11,397) (11,113) (284) 3%
Adjusted EBITDA* 7,014 11,250 (4,236) -38%
Depreciation & amortisation (1,119) (1,069) (50) 5%
Finance expense (734) (598) (136) 23%
Adjusted profit before tax* 5,161 9,583 (4,422) -46%
Tax expense (1,468) (2,399) 931 -39%
Adjusted profit after tax* 3,693 7,184 (3,491) -49%
Share-based payment expense (86) (96) 10 -10%
Tax on adjusting items 22 24 (2) -10%
Statutory profit after tax 3,629 7,112 (3,483) -49%
*Adjusted measures are before share-based payment expense and non-recurring
items.
During the period, unaudited Group revenues decreased 6% (£4.7m) to £79.5m
(H1 2024: £84.2m).
Channel & Territory
H1 FY25 H1 FY24 Change Change
£000 £000 £000 %
Supermarket 16,024 15,259 765 5%
Discounter 7,350 11,369 (4,019) -35%
Online 16,684 18,865 (2,181) -12%
Other 10,351 12,657 (2,306) -18%
UK by Channel 50,409 58,150 (7,741) -13%
Supermarket 7,984 7,457 527 7%
Discounter 15,083 13,298 1,785 13%
Online 2,021 2,009 12 1%
Other 3,987 3,265 722 22%
International by Channel 29,075 26,029 3,046 12%
Supermarket 24,008 22,716 1,292 6%
Discounter 22,433 24,667 (2,234) -9%
Online 18,705 20,874 (2,169) -10%
Other 14,338 15,922 (1,584) -10%
Total by Channel 79,484 84,179 (4,695) -6%
Against a backdrop of generally subdued consumer demand for consumer goods, it
was pleasing to see sales to Supermarkets return to growth, rising by 6%
(£1.3m) to £24.0m, despite overall Group sales falling by 6%. In the UK,
this increase (5%) was driven by stronger trading from our supermarket
customers, who have been winning general merchandise market share through
their loyalty schemes. In Europe (up 7%) we saw the end of the overstocking
issues, which previously held back orders from German supermarkets.
Sales to discounters fell 9% (£2.2m) to £22.4m, despite continued growth in
EU discounters, where sales increased by 13% (£1.8m) to £15.1m (excluding
air fryers and clearance, they were up £4.1m to £14.4m). In contrast, UK
discounter sales declined by 35%, largely reflecting weakness in the UK
consumer market, which has also been exacerbated by some cyclical moves to own
label (excluding air fryers and clearance, sales fell 28%). A similar pattern
was evident in the 'Other' category, which includes a broad range of smaller
customers. Here, total UK sales declined by 18%, reflecting the weakness in
the overall market. When excluding air fryers and clearance, sales were down
23%.
Online sales in the UK declined by 12% (£2.2m), primarily due to the fall in
air fryers and clearance sales. Excluding these, online sales remained flat.
However, online sales showed a notable divergence between Q1 and Q2, with
year-on-year sales down 22% in Q1 before recovering to a 5% increase in Q2.
Overall international sales were up 12%, and it is pleasing to see that we
recorded growth across all our channels.
Product
H1 2025 H1 2024 Change Change H1 2025 H1 2024
£'000 £'000 £'000 % % %
Small Domestic Appliances 29,134 33,175 (4,041) -12% 37% 39%
Housewares 25,152 21,387 3,765 18% 32% 25%
Laundry 9,805 10,204 (399) -4% 12% 12%
Audio 7,751 7,757 (6) 0% 10% 9%
Heating & Cooling 1,741 1,656 85 5% 2% 2%
Third party clearance 4,610 5,914 (1,304) -22% 6% 7%
Others 1,291 4,086 (2,795) -68% 2% 5%
Total 79,484 84,179 (4,695) -6% 100% 100%
Small Domestic Appliances (SDA), which includes air fryers (down £4.8m),
declined by 12% (£4.0m) during the period, which was an expected outcome
given the cooling off of the air fryer market. In addition, as previously
noted, Third-party clearance sales fell by 22% (£1.3m). Encouragingly,
Housewares returned to growth, 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, it is
important to note that the most significant percentage drop was in the
'Others' category rather than in our core ranges.
Brand
H1 2025 H1 2024 Change Change H1 2025 H1 2024
£'000 £'000 £'000 % % %
Salter 29,210 32,104 (2,894) -9% 37% 38%
Beldray 17,611 18,450 (839) -5% 22% 22%
Russell Hobbs (licensed) 7,475 5,787 1,688 29% 9% 7%
Progress 3,461 3,449 12 0% 4% 4%
George Wilkinson 3,412 663 2,749 414% 4% 1%
Kleeneze 1,334 1,895 (561) -30% 2% 2%
Petra 933 1,754 (821) -47% 1% 2%
Premier Brands 63,436 64,102 (666) -1% 80% 76%
Other UP brands 6,671 7,842 (1,171) -15% 8% 9%
Third party clearance & own label 9,377 12,235 (2,858) -23% 12% 15%
Total 79,484 84,179 (4,695) -6% 100% 100%
Salter, our iconic scales and kitchen brand, declined by 9% (£2.9m), driven
by the £4.8m fall in air fryers sales. Beldray also saw a slight decline,
reflecting weaker UK trading. Russell Hobbs branded cookware remains popular
in Germany and France, where the brand is currently better known than Salter
and Beldray. Sales have increased as overstocking issues at German
supermarkets have eased. Meanwhile, George Wilkinson, a cookware brand used by
discounters seeking a level of exclusivity, experienced significant growth in
the period as we expanded sales with EU discounters. As a result, our Premier
Brands reduced by just 1% compared to the overall sales decline of 6%, meaning
that they comprised 80% of our sales. Consistent with our core strategy of
growing our own brands, the largest decline was in the 'Third-party clearance
and own label' category.
Operating Margins
Gross margin decreased to 23.2% (H1 2024: 26.7%) due to elevated freight rates
over the summer, 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 period. Reassuringly, rates have now
normalised, returning to pre-shipping crisis levels, with the benefits of this
expected to be realised in H2.
Administrative expenses rose just 3% to £11.4m (H1 2025: £11.1m).
People-related costs remained flat at £8.2m, despite a 10% increase in
average cost per employee, reflecting both the externally imposed inflationary
effects of NLW increase and 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 8% to an average FTE
of 356 (H1 2024: 389). Our continued investment in robotic process automation
and AI will also help mitigate upcoming cost pressures, including the
increases in employers' National Insurance contributions (£100k for the
current year, with a full-year effect of £300k) and the impact of Extended
Producer Responsibility ("EPR") legislation (expected to have a full year
effect of £300k-£500k).
The combination of a 6% fall in revenues, the impact to gross margin of an
additional £2.0m of freight costs, and flat overheads has led to a 38% fall
in adjusted EBITDA to £7.0m (H1 2024: £11.3m), with our adjusted EBITDA
margin slipping from 13.4% to 8.8%.
Seasonality
The Group has historically had a seasonal weighting towards H1, with retail
demand being higher in the peak Christmas trading period. However, over the
past few years, this pattern has become less pronounced, with sales growth
weighted towards the less seasonal online channels. As a result, it is
anticipated that revenues for the second half of the year to 31 July 2025 will
be only marginally lower than for the six months ended 31 January 2025. In
addition, as we expect to see the benefits of the normalisation of freight
rates in the second half of the year, we expect operating profits to be
marginally weighted towards H2.
Adjusted & statutory profit
Depreciation and amortisation increased marginally by 5% to £1.1m (H1 2024:
£1.1m). The finance charge has increased by 23% to £0.7m (H1 2024: £0.6m)
as a result of higher average net debt across the period. 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 46% to £5.2m (H1 2024: £9.6m). The tax charge for the period at
28.5% (FY24: 25%) was higher than the UK statutory rate of 25% due to the
higher rate of tax paid on our European foreign branches.
Earnings per share
As a result of our ongoing share buy-back scheme the number of shares in issue
has decreased from 89,312,457 at 31 January 2024 to 87,569,892 at 31 January
2025, with the weighted average number of shares decreasing 1% to 85,527,067
(31 January 2024: 86,426,737).
H1 2025 EPS H1 2024 EPS
£'000 p £'000 p
Adjusted profit after tax / Adjusted EPS 3,693 4.3 7,184 8.3
Share-based payment expense (86) (0.1) (96) (0.1)
Tax on adjusting items 22 0.0 24 0.0
Statutory profit after tax / Basic EPS 3,629 4.2 7,112 8.2
As a result, adjusted profit after tax decreased 49% and adjusted earnings per
share decreased by 48%.
Financing and cash flow
The Group generated cash from operating activities of £1.1m (H1 2024:
£14.4m), being a 16% operating cash conversion. During the period we saw an
increase in the level of investment in working capital, due to an increase in
the level of stock.
31-Jan-25 31-Jan-24 Change Change
£'000 £'000 £'000 %
Sold Stock 13,974 9,543 4,431 46%
Free Stock 12,820 12,738 82 1%
Goods in Transit 11,980 7,073 4,907 69%
Total Stock 38,774 29,354 9,420 32%
The total level of stock increased by £9.4m year-on-year. The largest
increase (£4.9m) was in Goods in Transit, which is inventory on the sea
between China and the UK. Due to the closure of the Red Sea, sea freight is
currently sailing around Africa, which is adding around 15-20 days to the
total shipping time. In addition, the Group has seen an increase in the level
of Sold Stock, which is stock which 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 which the Group brings into the country to sell direct
to consumers and smaller retail customers has remained stable.
As a result, at the period end the Group had a net bank debt/adjusted EBITDA
ratio of 1.3x (31 July 2024: 0.4x), which represents net bank debt of £17.7m
(31 January 2024: £8.0m). During the year the Group sees significant
movements within its working capital requirement related to the timings of
orders with customers, therefore a longer view can be helpful in terms of
considering the level of gearing within the business, with the 12-month
rolling average ratio of net bank debt/adjusted EBITDA being 1.0x (31 July
2024: 0.7x).
Change Change
31 January 2025 31 January 2024
£'000 £'000 £'000 %
Cash 2,521 5,780
RCF/Overdraft (6,387) (5,767)
Invoice Discounting (8,155) (1,113)
Import Loans (5,794) (1,986)
Term loan - (5,000)
Debt Issue Costs 80 82
Net bank debt (17,735) (8,004) (9,731) 122%
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. It is the Board's intention to continue to invest in the
business for growth, whilst returning around 50% of post-tax profits to
shareholders through dividends, and to supplement this with share buy-backs
pursuant to a policy of maintaining net bank debt at a 1.0x adjusted EBITDA
ratio. In line with this policy, the Group returned £1.4m of cash to
shareholders through the share buy-back (H1 2024: £nil). In addition, an
interim dividend of 1.55 pence per share (H1 2024: 2.45 pence per share) was
approved by the Board on 24 March 2025 and will be paid on 27 June 2025 to
shareholders on record as at 30 May 2025 (ex-dividend date being 29 May 2025).
Andrew Gossage Chris Dent
Chief Executive Officer Chief Financial Officer
Consolidated Income Statement
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
Note 31 January 2025 31 January 2024 31 July 2024
£'000 £'000 £'000
Revenue 6 79,484 84,179 155,497
Cost of sales (61,073) (61,816) (115,043)
Gross profit 18,411 22,363 40,454
Adjusted earnings before interest, tax, depreciation, amortisation, 7,014 11,250 18,022
share-based payments & non‑recurring items
Depreciation (1,100) (1,058) (2,169)
Amortisation of intangibles (19) (11) (22)
Share-based payment expense (86) (96) (137)
Total administrative expenses (12,602) (12,278) (24,760)
Operating profit 5,809 10,085 15,694
Finance expense 8 (734) (598) (1,381)
Profit before tax 5,075 9,487 14,313
Tax expense (1,446) (2,375) (3,786)
Profit for the year attributable to equity holders of the Company 3,629 7,112 10,527
All amounts relate to continuing operations
Earnings per share
Basic 9 4.2 8.2 12.2
Diluted 9 4.2 8.1 12.0
Consolidated Statement of Comprehensive Income
Unaudited Unaudited Audited
6 months ended 6 months ended 31 January 2024 year ended
31 January 2025 31 July 2024
£'000 £'000 £'000
Profit for the period 3,629 7,112 10,527
Items that may subsequently be reclassified to the income statement
Fair value movements on cash flow hedging instruments 1,995 (546) (1,108)
Hedging instruments recycled through the income statement at the end of 373 1,274 1,605
hedging relationships
Deferred tax relating to cashflow hedges (592) (181) (123)
Items that will not subsequently be reclassified to the income statement
Foreign currency translation 1 - -
Other comprehensive income 1,777 547 374
Total comprehensive income for the period attributable to the equity holders 5,406 7,659 10,901
of the Company
Consolidated Statement of Financial Position
Unaudited Unaudited Audited
as at as at as at
Note 31 January 2025 31 January 2024 31 July 2024
£'000 £'000 £'000
Assets
Intangible assets 37,225 36,992 36,981
Property, plant and equipment 6,686 8,039 7,574
Total non-current assets 43,911 45,031 44,555
Inventories 38,774 29,354 36,578
Trade and other receivables 26,294 24,912 29,710
Derivative financial instruments 12 2,126 647 667
Current tax - 203 -
Cash and cash equivalents 2,521 5,780 4,733
Total current assets 69,715 60,896 71,688
Total assets 113,626 105,927 116,243
Liabilities
Trade and other payables (32,080) (29,766) (39,084)
Derivative financial instruments 12 (28) (635) (996)
Current tax (471) - (105)
Borrowings 11 (20,256) (13,784) (15,151)
Lease liabilities (839) (796) (811)
Total current liabilities (53,674) (44,981) (56,147)
Net current assets 16,041 15,915 15,541
Deferred tax (7,632) (7,182) (6,898)
Lease liabilities (3,026) (3,865) (3,436)
Total non-current liabilities (10,658) (11,047) (10,334)
Total liabilities (64,332) (56,028) (66,481)
Net assets 49,294 49,899 49,762
Equity
Share capital 13 219 223 221
Share premium 14,334 14,334 14,334
Capital redemption reserve 4 - 2
Employee benefit trust reserve (2,069) (1,685) (1,946)
Share-based payment reserve 1,443 1,467 1,431
Hedging reserve 1,490 (113) (286)
Retained earnings 33,873 35,673 36,006
Equity attributable to owners of the Group 49,294 49,899 49,762
Consolidated Statement of Changes in Equity
For the period ended 31 January
Share capital Share premium Capital redemption reserve Employee benefit trust reserve Share-based payment reserve Hedging reserve Retained earnings Total 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 period - - - - - - 7,112 7,112
Foreign currency retranslation - - - - - - - -
Cash flow hedging movement - - - - - 728 - 728
Deferred tax movement - - - - - (181) - (181)
Total comprehensive income for the period - - - - - 547 7,112 7,659
Transactions with shareholders:
Dividends paid - - - - - - (4,289) (4,289)
Share-based payments charge - - - - 96 - - 96
Deferred tax on share-based payments - - - - - - 159 159
Transfer of reserve on exercise of share award - - - - (446) - 446 -
Transfer of shares to employees on exercise of share award - - - 614 - - (169) 445
Purchase of own shares by the EBT - - - (310) - - - (310)
As at 31 January 2024 223 14,334 - (1,685) 1,467 (113) 35,673 49,899
Share capital Share premium Capital redemption reserve Employee benefit trust reserve Share-based payment reserve Hedging reserve Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
As at 1 August 2024 221 14,334 2 (1,946) 1,431 (286) 36,006 49,762
Profit for the period - - - - - - 3,629 3,629
Foreign currency translation - - - - - - 1 1
Cash flow hedging movement - - - - - 2,368 - 2,368
Deferred tax movement - - - - - (592) - (592)
Total comprehensive income for the period - - - - - 1,776 3,630 5,406
Transactions with shareholders:
Dividends paid - - - - - - (4,209) (4,209)
Share-based payments charge - - - - 86 - - 86
Deferred tax on share-based payments - - - - - - (78) (78)
Transfer of reserve on exercise of share award - - - - (74) - 74 -
Transfer of shares to employees on exercise of share award - - - 202 - - (145) 57
Purchase of own shares by the EBT - - - (325) - - - (325)
Share buy-back (2) - 2 - - - (1,405) (1,405)
As at 31 January 2025 219 14,334 4 (2,069) 1,443 1,490 33,873 49,294
Consolidated Statement of Cash Flows
For the period ended 31 January
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
31 January 2025 31 January 2024 31 July 2024
£'000 £'000 £'000
Net cash flow from operating activities
Profit for the year 3,629 7,112 10,527
Adjustments for:
Finance costs 734 598 1,381
Income tax expense 1,446 2,375 3,786
Depreciation 1,100 1,058 2,165
Amortisation 19 11 22
Loss on disposal of non-current assets - - 4
Derivative financial instruments (75) 91 190
Share-based payments 86 96 137
Working capital adjustments
(Increase)/decrease in inventories (2,196) (1,283) (8,507)
Decrease/(increase) in trade and other receivables 3,416 4,591 (207)
(Decrease)/increase in trade and other payables (7,020) (293) 9,048
Net cash from operating activities 1,139 14,356 18,546
Income taxes paid (1,016) (1,828) (3,176)
Net cash from operations 123 12,528 15,370
Cash flows used in investing activities
Purchase of property, plant and equipment (212) (654) (1,300)
Purchase of intangible assets (263) - -
Net cash used in investing activities (475) (654) (1,300)
Cash flows used in financing activities
(Purchase)/sale of own shares (269) 135 (144)
Share buy-back (1,405) - (1,000)
Proceeds from borrowings 9,125 2,750 6,341
Repayment of borrowings (4,013) (8,837) (11,071)
Principal paid on lease obligations (403) (443) (838)
Debt issue costs paid (53) (60) (137)
Dividends paid (4,209) (4,289) (6,411)
Interest paid (634) (460) (1,186)
Net cash used by finance activities (1,861) (11,204) (14,446)
Net (decrease)/increase in cash and cash equivalents (2,213) 670 (376)
Exchange gains on cash and cash equivalents 1 24 23
Cash and cash equivalents brought forward 4,733 5,086 5,086
Cash and cash equivalents carried forward 2,521 5,780 4,733
Notes to the Interim Results
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 the UK. The address of
its registered office is Ultimate Products plc, Manor Mill, Victoria Street,
Chadderton, Oldham OL9 0DD.
This consolidated condensed interim financial does not comprise statutory
accounts within the meaning of section 434 of the Companies Act 2006.
Statutory accounts for the year ended 31 July 2024 were approved by the Board
of Directors on 28 October 2024 and delivered to the Registrar of Companies.
The comparative figures for the financial year ended 31 July 2024 are an
extract of the Company's statutory accounts for that year. The report of the
auditor on those accounts was unqualified, did not contain an emphasis of
matter paragraph and did not contain any statement under section 498 (2) or
(3) of the Companies Act 2006.
This consolidated condensed interim financial information is unaudited but has
been reviewed by the Company's Auditor.
2. Basis of Preparation
This consolidated condensed interim financial information for the six months
ended 31 January 2025 has been prepared in accordance with IAS 34, 'Interim
Financial Reporting', in accordance with UK-adopted international accounting
standards. The consolidated condensed interim financial information should be
read in conjunction with the audited financial statements for the year ended
31 July 2024, which have been prepared in accordance with UK-adopted
international accounting standards.
Going Concern Basis
The Directors have adopted the going concern basis in preparing this
consolidated condensed interim financial information after assessing 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 borrowing facilities. The Group's projections, which
cover the period to July 2026, show that the Group will be able to operate
within its 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 the
Interim Results Statement.
Accounting Policies
The accounting policies and method of computations adopted in the preparation
of these condensed consolidated interim financial statements are consistent
with those followed in the preparation of the Group's annual financial
statements for the year ended 31 July 2024.
Adjusted Performance Measures (APMs)
APMs are utilised as key performance indicators by the Group and are
calculated by adjusting the relevant IFRS measurement by share based payments
and non-recurring items. The two main APMs which are used are Adjusted EBITDA
and Adjusted EPS. The reconciliation of these items to IFRS measurements can
be found in the Chief Financial Officer's Review. APMs are non-GAAP measures
and are not intended to replace those financial measurements, but are the
measures used by the Directors in their management of the business, and are,
therefore, important key performance indicators (KPIs).
3. Operating Segments
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker. The chief operating
decision maker has been identified as the Board. The Board is responsible for
allocating resources and assessing performance of operating segments. The
Directors consider that there are no identifiable business segments that are
subject to risks and returns different to the core business. The information
reported to the Directors, for the purposes of resource allocation and
assessment of performance, is based wholly on the overall activities of the
Group. The Group has therefore determined that it has only one reportable
segment under IFRS 8. The results and assets for this segment can be
determined by reference to the Consolidated Income Statement, the Consolidated
Statement of Comprehensive Income and the Consolidated Statement of Financial
Position.
4. Principal Risks and Uncertainties
The Directors consider that the principal risks and uncertainties, which could
have a material impact on the Group's performance in the remaining 6 months of
the financial year, remain substantially the same as those stated on pages
44-45 of the Group's Annual Report for the year ended 31 July 2024, which is
available on the Group's website, www.upplc.com.
5. Financial Instruments
The Group's activities expose it to a variety of financial risks: market risk
(including foreign exchange risk, cash flow and fair value interest rate risk
and price risk), credit risk and liquidity risk. The Group's exposure to
foreign exchange risk is mitigated by entering into forward exchange
contracts. Interest rate risk is managed by maintaining a portion of
borrowings under the protection of interest rate swaps and caps. The Interim
Results Statement should be read in conjunction with the Group's Annual Report
for the year ended 31 July 2024, as it does not include all financial risk
management information and disclosures contained within the Annual Report.
There have been no changes in the risk management policies since the year-end.
6. Revenue
6 months ended 31 January 2025 6 months ended Year ended
31 January 2024 31 July 2024
Geographical split by location: £'000 £'000 £'000
United Kingdom 50,410 58,150 101,152
Europe 27,964 25,233 52,990
Rest of the World 1,110 796 1,355
Total 79,484 84,179 155,497
International sales 29,074 26,029 54,345
Percentage of total revenue 36.6% 30.9% 35.0%
6 months ended 31 January 2025 6 months ended Year ended
31 January 2024 31 July 2024
Analysis of revenue by brand: £'000 £'000 £'000
Salter 29,210 32,104 56,354
Beldray 17,611 18,450 34,184
Russell Hobbs (licensed) 7,475 5,787 12,059
Progress 3,461 3,449 5,871
George Wilkinson 3,412 663 1,617
Kleeneze 1,334 1,895 3,188
Petra 933 1,754 2,576
Premier brands 63,436 64,102 115,849
Other proprietorial brands 6,671 7,842 13,092
Own label and other 9,377 12,235 26,556
Total 79,484 84,179 155,497
6 months ended 31 January 2025 6 months ended Year ended
31 January 2024 31 July 2024
Analysis of revenue by product: £'000 £'000 £'000
Small domestic appliances 29,134 33,175 58,119
Housewares 25,152 21,387 40,603
Laundry 9,805 10,204 18,630
Audio 7,751 7,757 15,160
Heating and cooling 1,741 1,656 3,028
Others 5,901 10,000 19,957
Total 79,484 84,179 155,497
6 months ended 31 January 2025 6 months ended Year ended
31 January 2024 31 July 2024
Analysis of revenue by sales channel: £'000 £'000 £'000
Supermarket 24,008 22,716 45,409
Discounter 22,433 24,667 44,994
Online 18,705 20,874 33,974
Other 14,338 15,922 31,120
Total 79,484 84,179 155,497
7. Seasonality
The Group has historically had a seasonal weighting towards H1, with retail
demand being higher in the peak Christmas trading period. However, over the
past few years, this pattern has become less pronounced, with sales growth
weighted towards the less seasonal online channels. As a result, it is
anticipated that the revenues for the second half of the year to 31 July 2025
will be only marginally lower than for the six months ended 31 January 2025.
In addition, as we expect to see the benefits of the normalisation of freight
rates in the second half of the year, we expect operating profits to be
marginally weighted towards H2.
8. Finance Costs
6 months ended 6 months ended Year ended
31 January 2025 31 January 2024 31 July 2024
£'000 £'000 £'000
Interest on bank loans and overdrafts 658 461 1,138
Interest on lease liabilities 105 126 242
Foreign exchange in respect of lease liabilities 12 22 13
Other interest payable and similar charges (41) (11) (12)
Total finance cost 734 598 1,381
9. 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:
6 months ended 6 months ended Year ended
31 January 2025 31 January 2024 31 July 2024
Profit for the year 3,629 7,112 10,527
Weighted average number of shares in issue 88,053,629 89,312,457 89,213,704
Less shares held by the UPGS EBT (2,526,562) (2,885,720) (2,657,123)
Weighted average number of shares - basic 85,527,067 86,426,737 86,556,581
Share options 843,302 879,020 974,498
Weighted average number of shares - diluted 86,370,369 87,305,757 87,531,079
Pence Pence Pence
Earnings per share - basic 4.2 8.2 12.2
Earnings per share - diluted 4.2 8.1 12.0
10. Dividends
6 months ended 6 months ended Year ended
31 January 2025
31 January 2024
31 July 2024
£'000 £'000 £'000
Final dividend paid in respect of the previous year 4,209 4,289 4,289
Interim declared and paid - - 2,122
4,209 4,289 6,411
Per share Pence Pence Pence
Final dividend paid in respect of the previous year 4.93 4.95 4.95
Interim declared and paid - - 2.45
4.93 4.95 7.40
An interim dividend of 1.55 p per share was approved by the Board on 24 March
2025 and will be paid on 27 June 2025 to shareholders on record as at 30 May
2025 (ex-dividend date being 29 May 2025).
11. Bank borrowings
As at As at As at
31 January 2025
31 January 2024
31 July 2024
£'000 £'000 £'000
Current
Bank overdrafts 1,387 5,767 4,791
Revolving credit facility 5,000 - -
Invoice discounting 8,155 1,113 8,765
Import loans 5,794 1,986 1,668
Term loan - 5,000 -
20,336 13,866 15,224
Less: Unamortised debt issue cost (80) (82) (73)
20,256 13,784 15,151
Total bank borrowings 20,256 13,784 15,151
The earliest that lenders of the above borrowings require repayment is as
follows:
In less than one year 20,336 13,866 15,224
Between one and two years - - -
Between two and five years - - -
Less: Unamortised debt issue cost (80) (82) (73)
20,256 13,784 15,151
The Group is funded by external bank facilities provided by HSBC. The total
drawn and undrawn facilities comprise a revolving credit facility of £5.0m
(31 January 2024: £8.2m; 31 July 2024 £8.2m), an invoice discounting
facility of £23.5m (31 January 2024: £23.5m; 31 July 2024 £23.5m) and an
import loan facility of £12m (31 January 2024: £12m; 31 July 2024: £12m).
12. Financial Instruments
a) Principal financial instruments
The principal financial instruments used by the Group, from which financial
instrument risk arises are as follows:
As at As at As at
31 January 2025
31 January 2024
31 July 2024
£'000 £'000 £'000
Trade receivables - held at amortised cost 24,890 23,613 28,507
Derivative financial instruments - assets - carried at FVTOCI 1,978 647 576
Derivative financial instruments - assets - carried at FVTPL 148 - 91
Trade and other payables (28,716) (27,134) (36,091)
Derivative financial instruments - liabilities - carried at FVTOCI - (635) (966)
Derivative financial instruments - liabilities - carried at FVTPL (28) - (30)
Borrowings - held at amortised cost (20,256) (13,784) (15,151)
Lease liabilities - held at amortised cost (3,865) (4,661) (4,247)
Cash and cash equivalents - held at amortised cost 2,521 5,780 4,733
b) Financial assets
The Group held the following financial assets at amortised cost:
As at As at As at
31 January 2025
31 January 2024
31 July 2024
£'000 £'000 £'000
Cash and cash equivalents 2,521 5,780 4,733
Trade receivables 24,890 23,613 28,507
27,411 29,393 33,240
c) Financial liabilities
The Group held the following financial liabilities, classified as other
financial liabilities at amortised cost:
As at As at As at
31 January 2025
31 January 2024
31 July 2024
£'000 £'000 £'000
Trade payables 23,027 21,010 30,363
Borrowings 20,256 13,784 15,151
Lease liabilities 3,865 4,661 4,247
Other payables 5,689 6,124 5,728
52,837 45,579 55,489
d) Derivative financial instruments
The Group held the following derivative financial instruments, classified as
fair value through profit and loss on initial recognition:
As at As at As at
31 January 2025
31 January 2024
31 July 2024
£'000 £'000 £'000
Forward currency contracts 2,070 (351) (544)
Interest rate swaps 14 193 111
Interest rate caps 14 170 104
2,098 12 (329)
The following is a reconciliation of the financial instruments to the
statement of financial position:
As at As at As at
31 January 2025
31 January 2024
31 July 2024
£'000 £'000 £'000
Trade receivables 24,890 23,613 28,507
Prepayments and other receivables not classified as financial instruments 1,404 1,299 1,203
Trade and other receivables 26,294 24,912 29,710
As at As at As at
31 January 2025
31 January 2024
31 July 2024
£'000 £'000 £'000
Trade and other payables 28,716 27,134 36,091
Other taxes and social security not classified as financial instruments 3,364 2,632 2,993
Trade and other payables 32,080 29,766 39,084
Derivative financial instruments - 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
January 2025, the Group was committed to:
As at 31 January 2025 As at 31 January 2024 As at 31 July 2024
Buy Sell Buy Sell Buy Sell
USD$'000 76,500 - 51,900 - 59,000 -
EUR€'000 - 39,400 - 29,700 - 34,000
PLN'000 - 1,400 - 600 - -
CNY'000 3,512 - 5,453 - 4,483 -
At 31 January 2025, all the outstanding USD, EUR and PLN contracts mature
within 12 months of the period end (31 January 2024: 12 months; 31 July 2024:
12 months). The CNY currency contracts, which are held as a partial hedge of 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:CNY and GBP:PLN. The fair value of the contracts at 31 January 2025 is an
asset of £2,070,000 (31 January 2024: £351,000 liability; 31 July 2024:
£544,000 liability).
Forward currency contracts are valued using level 2 inputs. The valuations are
calculated using the period end exchange 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 on the changes in the future cash flows, based on 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, as set out in the accounting
policies of the financial statements for the year ended 31 July 2024.
Derivative financial instruments - 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 January 2025, protection was in place over
an aggregate principal of £8,527,000 (31 January 2024: £9,016,000, 31 July
2024: £8,900,000).
All of the interest rate swaps meet the conditions for hedge accounting, as
set out in the accounting policies contained in the financial statements for
the year ended 31 July 2024. Hedge accounting is applied in respect of the
interest rate caps to the extent that their current valuation exceeds their
amortised cost.
Interest rate swaps and caps are valued using level 2 inputs. The valuations
are based on 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 on the current valuation of the present saving or
cost of the future cash flow differences, based on the difference between the
swapped and capped interest rates contracts and the expected interest rate as
per the lending agreement.
13. Share Capital
As at As at As at
31 January 2025
31 January 2024
31 July 2024
£'000 No. of shares £'000 No. of shares £'000 No. of shares
Opening share capital 221 88,628,572 223 89,312,457 223 89,312,457
Share buy-backs (2) (1,058,680) - - (2) (683,885)
Closing share capital 219 87,569,892 223 89,312,457 221 88,628,572
14. Related party transactions
6 months ended 6 months ended Year ended
31 January 2025
31 January 2024
31 July 2024
£'000 £'000 £'000
Transactions with related companies and businesses:
Lease payments to Heron Mill Limited 194 194 388
Lease payments to Berbar Properties Limited 90 90 180
Statement of Directors' Responsibilities
The Directors confirm that these consolidated condensed interim financial
statements have been prepared in accordance with International Accounting
Standard 34 Interim Financial Reporting, in accordance with UK-adopted
international accounting standards. The interim management report includes a
fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
• an indication of important events that have occurred during the
first six months and their impact on the condensed set of financial
statements, and a description of the principal risks and uncertainties for the
remaining six months of the financial year; and
• material related party transactions in the first six months and
any material changes in the related party transactions described in the last
annual report.
For and on behalf of the Board of Directors
Andrew Gossage Chris Dent
Chief Executive Officer Chief Financial Officer
24 March 2025 24 March 2025
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