REG - Ultimate Products - Interim Results
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RNS Number : 7645X Ultimate Products PLC 24 March 2026
24 March 2026
Ultimate Products plc
("Ultimate Products", the "Company" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 JANUARY 2026
Continued focus on strengthening our commercial function to help drive future
growth
Ultimate Products, the owner of leading homeware brands including Salter (the
UK's oldest houseware brand, est.1760) and Beldray (est.1872), announces its
unaudited interim results for the six months ended 31 January 2026 ("H1" or
"H1 FY26").
Financial summary (unaudited)
H1 FY26 H1 FY25 Change Change
£'000 £'000 £'000 %
UK branded sales 43,792 46,730 (2,938) -6%
International branded sales 27,746 23,377 4,369 19%
3P clearance and white label 2,912 9,377 (6,465) -68%
Revenue 74,450 79,484 (5,034) -6%
Gross profit 16,947 18,411 (1,464) -8%
GM% 22.8% 23.2% -0.4%
Adjusted EBITDA* 5,004 7,014 (2,010) -29%
Adjusted profit before tax* 3,090 5,161 (2,071) -40%
Statutory profit before tax 2,416 5,809 (3,393) -58%
Adjusted Basic EPS* 2.7p 4.3p (1.7p) -38%
Basic EPS 2.1p 4.2p (2.2p) -51%
Dividend 0.9p 1.55p (0.7p) -42%
Net Bank Debt (9,730) (17,735) 8,005 -45%
Operating Cash conversion 195% 16%
Net bank debt/adjusted EBITDA* 0.9x 1.1x
Financial highlights
· Revenues down 6%, reflecting subdued consumer demand for general
merchandise and a deliberate reduction in third-party clearance sales as we
focus more on branded product sales
· Continued international expansion, with international branded sales up
19% to £27.7m, driven by branded sales to EU discounters, where sales
increased 91%
· Adjusted EBITDA* of £5.0m (H1 FY25: £7.0m), which includes £0.4m of
non-recurring costs relating to the reorganisation of the commercial function
· Operating cash conversion of 195% (H1 FY25: 16%), with a £4.6m
reduction in working capital due to lower trading, and stock levels
benefitting from more reliable freight times and customer order intake
Operational highlights
· Continued focus on strengthening the equity of UP proprietary brands
(including Salter, Beldray, Progress, Kleeneze and Petra), which account for
88% of sales and delivered 5% growth in the period
· Five senior management promotions, strengthening the Operating Board
and C-Suite across commercial activities, supply chain, operations, products
and marketing
· Ongoing investment in enhancing the Group's commercial function to
help drive future sales growth
· Greater operational efficiency achieved through our Product Information
Management ("PIM") system, automation and AI
· Successful move of the Group's listing from the LSE's Main Market to
AIM
Current trading and outlook
Notwithstanding the uncertain macroeconomic backdrop and the unpredictable
geopolitical environment, the Board currently expects the trading trends seen
in H1 to continue throughout the balance of the year. While the general
merchandise market remains soft, particularly in the UK, Group sales are
expected to be marginally ahead of market expectations, with profitability in
line with consensus, reflecting the change in sales mix. The Board is
confident that the ongoing investment in the Group's operational capabilities
will enable it to maximise its future growth opportunities.
Commenting on the results, Andrew Gossage, Chief Executive of Ultimate
Products, said:
"Our primary focus for the business continues to be the strengthening of our
commercial function. We believe the investments we're making in this area will
put the business on a stronger footing to return to top-line growth, and that
our efforts to enhance productivity will increase the operational gearing of
that growth."
Consensus market expectations immediately prior to this announcement
FY25 (Actual) FY26 (Consensus)
Revenue £150.1m £137.7m
Adjusted EBITDA £12.5m £9.9m
Adjusted EPS 7.4p 5.2p
*Adjusted measures are before share-based payment expenses and non-recurring
items
For more information, please contact:
Ultimate Products +44 (0) 161 627 1400
Andrew Gossage, CEO
Chris Dent, CFO
Cavendish Capital Markets Limited (Nomad and Joint Broker) + 44 (0)20 7220
0500
Matt Goode/ Callum Davidson/ Trisyia Jamaludin (Corporate Finance)
Matt Lewis (Corporate Broking)
Shore Capital (Joint Broker) +44 (0) 20 7408 4090
Malachy McEntyre/ Isobel Jones (Corporate Broking)
Mark Percy / David Coaten / Harry Davies-Ball (Corporate Advisory)
Sodali & Co +44 (0) 207 250 1446
Rob Greening/ Sam Austrums/ Oliver Banks
Notes to Editors
Ultimate Products is the owner of leading homeware brands including Salter
(the UK's oldest houseware brand, established in 1760) and Beldray (a laundry
and floor care brand 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://protect.checkpoint.com/v2/r02/___https:/salter.com/___.YXAxZTpzaG9yZWNhcDpjOm86NTQ0YzUzMzVmNjcyNjczZDJkMGVkYmVjNjIwYzUxYzc6Nzo4M2NjOmMyN2RlYjJlOTk1NzYzMmQ5NTA0NzllYTBmMDYwOGI2ZTY5NjZkZjMzZmU4OTg5MmM4N2VkZDQyOTlkMWZiYzI6cDpGOk4)
and beldray.com
(https://protect.checkpoint.com/v2/r02/___https:/beldray.com/___.YXAxZTpzaG9yZWNhcDpjOm86NTQ0YzUzMzVmNjcyNjczZDJkMGVkYmVjNjIwYzUxYzc6Nzo4ZmUxOjU1YzQyMjZmMDEwNGY4ZWJlNWU3N2RhOGFkNzI4YWNlMDJiN2MwMzkyOGViYzBlZDRiOWZkZDY3NWYzNzgzNTk6cDpGOk4)
, as well as major third-party online marketplaces. The Group specialises in
four product categories: Small Domestic Appliances; Housewares; Laundry; and
Audio. Other UP brands include Progress (bakeware, cookware and kitchen
electrical), Kleeneze (laundry and floorcare), Petra (small domestic
appliances), George Wilkinson (cookware and kitchen electrical) 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
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 https://upplc.com/
(https://protect.checkpoint.com/v2/r02/___https:/upplc.com/___.YXAxZTpzaG9yZWNhcDpjOm86NTQ0YzUzMzVmNjcyNjczZDJkMGVkYmVjNjIwYzUxYzc6NzozMTdjOmEyZDEyYzMzMTY0NzI0ZTYzYjE1NzFlOTg5ODIwZWVjMzVmOTYzMmIwYmYxOTg1NjdlMmYxOTRmMjMyODllMmU6cDpGOk4)
.
BUSINESS REVIEW
Purpose & Strategy
FY26 is proving to be a year of significant change for Ultimate Products.
While the first half saw a disappointing fall in the Group's overall sales and
profits amid challenging trading conditions for general merchandise, we have
made a number of important improvements to the ways in which we operate
commercially. These changes have focused on strengthening the foundations of
the business, better positioning us to maximise future growth opportunities
and return to top-line growth. They should not be seen as a change to our
strategy, but rather a reaffirmation of, and recommitment to, it.
Our route to commercial success is built upon the interaction of three core
components - brand, products and sales. During the period, the structure of
the commercial function was refreshed through the promotions of Duncan
Singleton to Chief Commercial Officer, Katie Maxwell to Chief Product Officer
and Tracy Carroll to Chief Marketing Officer. Together, this triumvirate will
drive meaningful transformation of the commercial function through clearer
accountability and closer collaboration. Alongside this, the promotions of
David Bloomfield to Chief Supply Chain Officer and Craig Holden to Chief
Operating Officer further strengthen the Group's C-suite. Collectively, this
leadership team, supported by the rest of the wider business, will drive the
long-term success of Ultimate Products.
Our purpose is to be the 'Home of Brands'. Over time, the Group has
transformed from a sourcing and trading business to an owner of brands and a
strategic partner to retail customers, selling products that resonate with
consumers. Our key brands, which will continue to be the engine of sales
growth, are Salter and Beldray, and they are supported by Petra, Progress,
George Wilkinson, Kleeneze, and our licensed brand Russell Hobbs. We are
pleased that, during the period, our branded sales grew by 2%, with UP
proprietary brand sales delivering 5% growth.
H1 FY22 H1 FY23 H1 FY24 H1 FY25 H1 FY26
£000 £000 £000 £000 £000
Branded sales 77,645 79,212 71,944 70,107 71,538
3P clearance and white label 8,101 8,394 12,235 9,377 2,912
Total 85,746 87,606 84,179 79,484 74,450
Although our brands are key to our long-term strategic success, they have not
always been given the commercial primacy they required. This was especially
true during FY24, when widespread industry overstocking led to a high
availability of clearance parcels. While Ultimate Products originated as a
clearance and sourcing business, and the skills relating to these activities
remained embedded in our commercial function, it became clear that the
strategic drawbacks of this line of business outweighed its short-term
tactical benefits.
Third-party clearance sales are typically higher-margin, but they are one-off,
volatile and ultimately proved to be cannibalistic rather than additive to our
top line. They also distracted both our commercial function and our retail
customers from delivering long-term brand-led relationships. As a result,
during H1, we took the decision to close the Group's clearance division. While
this marked a departure from UP's historic roots, it was a strategically
necessary step to sharpen our focus on branded growth and support our ambition
to become the 'Home of Brands'.
Our ability to identify consumer trends that make our branded products
desirable to both consumers and retailers is the cornerstone of our product
development. This area is the largest use of resource and capital allocation
within our business, and it is therefore vital that the process is as
effective as possible. All decisions and activities relating to product
development now sit under Katie Maxwell, the newly created Chief Product
Officer, allowing for a more coordinated approach and clearer ownership of
product outcomes. Rather than a siloed structure whereby buying teams
developed product based on instinct alone, decisions are now based on
data-driven analysis of exactly what our consumers want on their counter tops
and, therefore, exactly what our retailer customers want on their shelves.
An important element of the streamlining of this process has been the
implementation of our Product Information Management ("PIM") system. This,
supported by efficiencies we are gaining through the use of Robotic Process
Automation and AI, reduces the time required for lower-value level tasks,
allowing the team to focus more on the higher-value aspects of the NPD
process. Developing better branded products, where the end consumer and retail
customer are the beginning of the lifecycle of a new product, will result in
higher and more consistent return rates on the investment that we make in this
area.
However, it is in our approach to sales, under the leadership of Duncan
Singleton, our Chief Commercial Officer, that we have seen the most
significant changes with regards to how our commercial function operates.
Given the origins of our business, the primary skills of our sales function
were previously geared towards selling third-party clearance and white-label
products, rather than our UP proprietary branded products. Building long-term
commercial partnerships with retail customers requires a deep understanding of
their needs, supported by detailed data gathering and analysis. This approach
is not focused on the sale made today, but on developing shared, long-term
plans for the next five years, including the pipeline of products and brand
progression. With this in mind, during the period we restructured and
strengthened the sales function to ensure it has the right capabilities and
skills to better understand and anticipate customer needs. This will support
sustainable sales growth and enable the business to build long-term value.
Trading
H1 FY26 H1 FY25 Change Change
£000 £000 £000 %
UK branded sales 43,792 46,730 (2,938) -6%
International branded sales 27,746 23,377 4,369 19%
3P clearance and white label 2,912 9,377 (6,465) -68%
Total 74,450 79,484 (5,034) -6%
During the period, unaudited Group revenues decreased 6% (£5.0m) to £74.5m
(H1 FY25: £79.5m). The fall in year-on-year sales can largely be attributed
to our decision to focus on sales of branded products.
In line with our strategic plans, international branded sales grew strongly,
up 19% to £27.7m (H1 FY25: £23.4m). This was driven by a 91% increase in
branded sales to European discounters, which reached £19.0m. 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, branded sales declined 6% to £43.8m (H1 FY25: £46.7m), reflecting
the well-documented challenging trading conditions in this market. However, it
also reflects the stagnation over the past decade of our commercial function
which, as set out above, we are in the process of rectifying.
The table below shows the breakdown of our sales by key sales channels
(Supermarkets, Discounters, Online & Other) and geographical location (UK
& International), as well as breaking out the non-strategic sales of
third-party clearance and white label ("3PC & WL"). In previous periods we
have also broken out the sales of air fryers. However, in the current period
these have been stable at £4.8m (H1 FY25: £4.9m).
H1 FY26 H1 FY25 Change %
3PC & WL Branded sales Total 3PC & WL Branded sales Total 3PC & WL Branded sales Total
£000 £000 £000 £000 £000 £000 % % %
Supermarket (110) 14,395 14,285 951 15,073 16,024 -112% -4% -11%
Discounter 10 6,068 6,078 774 6,576 7,350 -99% -8% -17%
Online 344 14,894 15,238 634 16,050 16,684 -46% -7% -9%
Other 456 8,435 8,891 1,320 9,031 10,351 -65% -7% -14%
UK 700 43,792 44,492 3,679 46,730 50,409 -81% -6% -12%
Supermarket - 4,056 4,056 79 7,905 7,984 -100% -49% -49%
Discounter 1,970 19,005 20,975 5,119 9,964 15,083 -62% 91% 39%
Online 5 1,673 1,678 5 2,016 2,021 0% -17% -17%
Other 237 3,012 3,249 495 3,492 3,987 -52% -14% -19%
International 2,212 27,746 29,958 5,698 23,377 29,075 -61% 19% 3%
Supermarket (110) 18,451 18,341 1,030 22,978 24,008 -111% -20% -24%
Discounter 1,980 25,073 27,053 5,893 16,540 22,433 -66% 52% 21%
Online 349 16,567 16,916 639 18,066 18,705 -45% -8% -10%
Other 693 11,447 12,140 1,815 12,523 14,338 -62% -9% -15%
TOTAL 2,912 71,538 74,450 9,377 70,107 79,484 -69% 2% -6%
Overall, third-party clearance and white-label sales declined by £6.5m,
reflecting the decision to close the clearance division. Branded sales rose 2%
to £71.5m (H1 FY25: £70.1m), with UP proprietary sales up 5% and licensed
sales down 24%. Licensed sales are primarily sales of Russell Hobbs, where we
have a four-year rolling licence for cookware and laundry. The fall reflects a
poor trading performance with international supermarkets (primarily in
Germany) where sales were down 49%.
Branded sales in the UK were down 6% to £43.8m (H1 FY25: £46.7m), reflecting
weak macroeconomic trading conditions. However, we believe that even in
challenging trading conditions UP has the ability to improve its trading
performance as we currently have a low market share. Our poor trading in the
UK is reflected in the individual performance of our brands, as shown in the
table below.
H1 FY26 H1 FY25 Change Change
£000 £000 £000 %
Salter 27,095 29,210 (2,115) -7%
Beldray 19,996 17,611 2,385 14%
George Wilkinson 4,166 3,412 754 22%
Petra 4,044 933 3,111 333%
Progress 2,906 3,461 (555) -16%
Kleeneze 784 1,334 (550) -41%
Other proprietary brands 6,907 6,671 236 4%
UP Brands 65,898 62,632 3,266 5%
Russell Hobbs 5,640 7,475 (1,835) -25%
Third Party Clearance & white label 2,912 9,377 (6,465) -69%
Total 74,450 79,484 (5,034) -6%
Although our branded sales were up 5% overall, Salter - which currently holds
a strong market position in the UK but is less well known internationally -
saw sales fall by 7%, broadly in-line with the 6% fall in UK branded sales.
The UP proprietary brands that saw significant growth in the period are the
ones we sell into European discounters, where branded sales have grown by 91%.
This can be seen in the growth of Petra (up 333% to £4.0m) and George
Wilkinson (up 22% to £4.2m). Beldray is sold across both supermarkets and
discounters, and benefited from its significant rebrand in FY25, which led
sales to grow by 13% to £19.9m.
Performance
H1 FY26 H1 FY25 Change Change
£'000 £'000 £'000 %
Revenue 74,450 79,484 (5,034) -6%
Cost of sales (57,503) (61,073) 3,570 -6%
Gross profit 16,947 18,411 (1,464) -8%
Administrative expenses (11,943) (11,397) (546) 5%
Adjusted EBITDA 5,004 7,014 (2,010) -29%
Depreciation & amortisation (1,049) (1,119) 70 -6%
Finance expense (865) (734) (131) 18%
Adjusted profit before tax 3,090 5,161 (2,071) -40%
Tax expense (862) (1,468) 606 -41%
Adjusted profit after tax 2,228 3,693 (1,465) -40%
Share-based payments (103) (86) (17) 20%
ERP Costs (328) - (328)
AIM Costs (243) - (243)
Tax on adjusting items 169 22 147 668%
Statutory profit after tax 1,723 3,629 (1,906) -53%
Gross margin decreased slightly to 22.8% (H1 FY25: 23.2%). This fall occurred
despite the 1.6bps benefit we saw in the period resulting from the
stabilisation of freight rates. The overall reduction was due to the change in
mix. Although third-party clearance sales, in the long-term, represent a poor
quality of earnings due to their one-off nature, they tend to be at a higher
gross margin. In addition, sales to larger discounters tend to be at a lower
margin because of higher unit volumes. Furthermore, we also saw the £220,000
impact of the UK Government's Extended Producer Responsibility (ERP) tax.
Administrative expenses increased 5% (£0.5m) to £11.9m (H1 FY25: £11.4m),
with the most significant increase being the non-recurring £430,000 of costs
relating to the reorganisation of our commercial function. In addition, we
continue to invest in robotic process automation and AI to help mitigate cost
pressures and increase our level of future operational leverage. As such, our
increased productivity has allowed us to decrease headcount by 9% to an
average FTE of 324 (H1 FY25: 356). In the period, most of the benefit has been
used to offset inflationary pressures such as the inflationary effects of the
National Living Wage increase and the rise in employer National Insurance
contributions, as well as our own commitment to an employee remuneration
policy that is designed to attract and retain talent. In the future, the
benefits should accrue more evenly between stakeholders as we enhance our
operational capabilities to drive top-line growth.
The combination of a 6% fall in revenues, the gross margin impact of sales
mix, and reorganisation costs increasing overheads has led to a 29% fall in
adjusted EBITDA to £5.0m (H1 FY25: £7.0m).
Adjusted & statutory profit
Depreciation and amortisation decreased by 6% to £1.0m (H1 FY25: £1.1m). The
finance charge increased by 18% to £0.9m (H1 FY25: £0.7m) as a result of the
ending of the benefit we saw in relation to our interest rate caps and swaps
taken out when interest rates were low, which ended in March 2025 and impacted
adjusted profit before tax, which decreased 40% to £3.1m (H1 FY25: £5.2m).
The tax charge for the year was 27.9% (H1 FY25: 28.4%), 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 continued the project of replacing its core ERP
system. Upgrading it will be a critical step in further enhancing our
operational capabilities. The project is currently running as expected and to
budget, with the cost in the current period being £328k (H1 FY25: £nil). We
currently estimate that the total cost of implementing this system change will
be in the region of £2m, and costs will be expensed in the period in which
they occur. It is currently expected that the new system will launch during
FY27. These costs have been shown separately in the Income Statement to better
reflect the performance of the underlying business.
Following a shareholder vote on 12 December 2025 at the Company's AGM, on 15
January 2026 the Group changed its listing venue from the London Stock
Exchange's Main Market to AIM. The Board continues to believe that, at the
Company's current market capitalisation, the AIM market is the most suitable
listing venue for the Group. The reduction in the administrative requirements
will allow more time and resource to be focused on the execution of the
Company's commercial growth strategy. In total, the costs associated with the
change in listing venue amounted to £243,000 (H1 FY25: £nil). Again, 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 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 January 2026,
with the weighted average number of shares (once the shares held in the EBT
and taken into account) decreasing 2% to 83,636,705 (31 January 2025:
85,527,067).
H1 FY26 EPS H1 FY25 EPS
£'000 p £'000 p
Adjusted profit after tax 2,228 2.7 3,693 4.3
Share-based payments (103) (0.1) (86) (0.1)
ERP costs (328) (0.4) - -
AIM costs (243) (0.3) - -
Tax on adjusting items 169 0.2 22 0.0
Statutory profit 1,723 2.1 3,629 4.2
As a result, adjusted profit after tax decreased 40% and adjusted earnings per
share decreased by 38%. Statutory profit after tax decreased 53% and statutory
earnings per share decreased by 51%.
Financing and cash flow
The Group generated £9.7m of cash from operating activities (H1 FY25:
£1.1m), representing an operating cash conversion of 195% (FY25: 16%), as the
Group saw working capital reduce by £4.6m. This was mainly due to the reduced
level of trading of the Group but has also been positively impacted by more
reliable freight times and order intake by customers.
As a result, at the period end, the Group had a net bank debt/adjusted EBITDA
ratio of 0.9x (H1 FY25: 1.1x), which represents net bank debt of £9.7m (H1
FY25: £17.7m). 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 1.4x (H1 FY25: 1.3x).
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.
In line with our policy, an interim dividend of 0.9 pence per share (H1 FY25:
1.55 pence per share) was approved by the Board on 23 March 2026 and will be
paid on 26 June 2026 to shareholders on record as at 29 May 2026 (ex-dividend
date being 28 May 2026).
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 2026 31 January 2025 31 July 2025
£'000 £'000 £'000
Revenue 6 74,450 79,484 150,135
Cost of sales (57,503) (61,073) (115,288)
Gross profit 16,947 18,411 34,847
Adjusted earnings before interest, tax, depreciation, amortisation, 5,004 7,014 12,505
share-based payments & non‑recurring items
Depreciation (1,014) (1,100) (2,104)
Amortisation of intangibles (35) (19) (45)
Share-based payment expense (103) (86) (16)
ERP implementation costs (328) - (640)
AIM listing fees (243) - -
Total administrative expenses (13,666) (12,602) (25,147)
Operating profit 3,281 5,809 9,700
Finance expense 8 (865) (734) (1,651)
Profit before tax 2,416 5,075 8,049
Tax expense (693) (1,446) (2,242)
Profit for the year attributable to equity holders of the Company 1,723 3,629 5,807
All amounts relate to continuing operations
Earnings per share
Basic 9 2.1 4.2 6.8
Diluted 9 2.0 4.2 6.7
Consolidated Statement of Comprehensive Income
Unaudited Unaudited Audited
6 months ended 6 months ended 31 January 2025 year ended
31 January 2026 31 July 2025
£'000 £'000 £'000
Profit for the period 1,723 3,629 5,807
Items that may subsequently be reclassified to the income statement
Fair value movements on cash flow hedging instruments (981) 1,995 (1,910)
Hedging instruments recycled through the income statement at the end of 1,433 373 564
hedging relationships
Deferred tax relating to cashflow hedges (113) (592) 335
Items that will not subsequently be reclassified to the income statement
Foreign currency translation (1) 1 -
Other comprehensive income 338 1,777 (1,011)
Total comprehensive income for the period attributable to the equity holders 2,061 5,406 4,796
of the Company
Consolidated Statement of Financial Position
Unaudited Unaudited Audited
as at as at as at
Note 31 January 2026 31 January 2025 31 July 2025
£'000 £'000 £'000
Assets
Intangible assets 37,118 37,225 37,072
Property, plant and equipment 5,314 6,686 5,800
Total non-current assets 42,432 43,911 42,872
Inventories 36,044 38,774 32,452
Trade and other receivables 25,513 26,294 26,779
Derivative financial instruments 12 194 2,126 47
Current tax - - 20
Cash and cash equivalents 3,351 2,521 4,063
Total current assets 65,102 69,715 63,361
Total assets 107,534 113,626 106,233
Liabilities
Trade and other payables (36,680) (32,080) (29,735)
Derivative financial instruments 12 (1,634) (28) (1,828)
Current tax (2) (471) -
Borrowings 11 (13,081) (20,256) (18,174)
Lease liabilities (749) (839) (821)
Total current liabilities (52,146) (53,674) (50,558)
Net current assets 12,956 16,041 12,803
Deferred tax (6,722) (7,632) (6,678)
Lease liabilities (2,247) (3,026) (2,601)
Total non-current liabilities (8,969) (10,658) (9,279)
Total liabilities (61,115) (64,332) (59,837)
Net assets 46,419 49,294 46,396
Equity
Share capital 13 216 219 216
Share premium 14,334 14,334 14,334
Capital redemption reserve 7 4 7
Employee benefit trust reserve (2,316) (2,069) (2,071)
Share-based payment reserve 1,404 1,443 1,376
Hedging reserve (958) 1,490 (1,297)
Retained earnings 33,732 33,873 33,831
Equity attributable to owners of the Group 46,419 49,294 46,396
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 2024 221 14,334 2 (1,946) 1,431 (286) 36,006 49,762
Profit for the period - - - - - - 3,629 3,629
Foreign currency retranslation - - - - - - 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
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 2025 216 14,334 7 (2,071) 1,376 (1,297) 33,831 46,396
Profit for the period - - - - - - 1,723 1,723
Foreign currency translation - - - - - - (1) (1)
Cash flow hedging movement - - - - - 452 - 452
Deferred tax movement - - - - - (113) - (113)
Total comprehensive income for the period - - - - - 339 1,722 2,061
Transactions with shareholders:
Dividends paid - - - - - - (1,796) (1,796)
Share-based payments charge - - - - 103 - - 103
Deferred tax on share-based payments - - - - - - (20) (20)
Transfer of reserve on exercise of share award - - - - (75) - 75 -
Transfer of shares to employees on exercise of share award - - - 80 - - (80) -
Purchase of own shares by the EBT - - - (325) - - - (325)
As at 31 January 2026 216 14,334 7 (2,316) 1,404 (958) 33,732 46,419
Consolidated Statement of Cash Flows
For the period ended 31 January
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
31 January 2026 31 January 2025 31 July 2025
£'000 £'000 £'000
Net cash flow from operating activities
Profit for the year 1,723 3,629 5,807
Adjustments for:
Finance costs 865 734 1,651
Income tax expense 693 1,446 2,242
Depreciation 1,014 1,100 2,101
Amortisation 35 19 45
Loss on disposal of non-current assets - - 3
Derivative financial instruments 84 (75) 118
Share-based payments 103 86 16
Working capital adjustments
(Increase)/decrease in inventories (3,592) (2,196) 4,126
Decrease in trade and other receivables 1,305 3,416 2,931
(Decrease)/increase in trade and other payables 6,929 (7,020) (9,398)
Net cash from operating activities 9,159 1,139 9,642
Income taxes paid (759) (1,016) (2,341)
Net cash from operations 8,400 123 7,301
Cash flows used in investing activities
Purchase of property, plant and equipment (81) (212) (136)
Purchase of intangible assets (528) (263) (330)
Net cash used in investing activities (609) (475) (466)
Cash flows used in financing activities
Purchase of own shares (325) (269) (269)
Share buy-back - (1,405) (2,309)
Proceeds from borrowings - 9,125 3,374
Repayment of borrowings (5,061) (4,013) (364)
Principal paid on lease obligations (436) (403) (822)
Debt issue costs paid (89) (53) (74)
Dividends paid (1,796) (4,209) (5,513)
Interest paid (795) (634) (1,527)
Net cash used by finance activities (8,502) (1,861) (7,504)
Net decrease in cash and cash equivalents (711) (2,213) (669)
Exchange gains on cash and cash equivalents (1) 1 (1)
Cash and cash equivalents brought forward 4,063 4,733 4,733
Cash and cash equivalents carried forward 3,351 2,521 4,063
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
Alternative Investment Market of 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 2025 were approved by the Board
of Directors on 27 October 2025 and delivered to the Registrar of Companies.
The comparative figures for the financial year ended 31 July 2025 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.
2. Basis of Preparation
The consolidated interim financial statements for the six months ended 31
January 2026 have been prepared in accordance with UK-adopted international
accounting standards. They are unaudited and do not constitute statutory
accounts as defined in section 434 of the Companies Act 2006. The unaudited
consolidated interim financial statements should be read in conjunction with
the audited financial statements for the year ended 31 July 2025. The report
of the auditor on those financial statements was unqualified and did not draw
attention to any matters by way of emphasis of matter.
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 2025.
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 2025, 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 2025, 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 6 months ended Year ended
31 January 2026 31 January 2025 31 July 2025
Geographical split by location: £'000 £'000 £'000
United Kingdom 44,493 50,410 94,174
Europe 29,097 27,964 53,804
Rest of the World 860 1,110 2,157
Total 74,450 79,484 150,135
International sales 29,957 29,074 55,961
Percentage of total revenue 40.2% 36.6% 37%
6 months ended 6 months ended Year ended
31 January 2026 31 January 2025 31 July 2025
Analysis of revenue by brand: £'000 £'000 £'000
Salter 27,095 29,210 52,004
Beldray 19,996 17,611 37,979
George Wilkinson 4,166 3,412 7,193
Progress 2,906 3,461 5,004
Petra 4,044 933 3,131
Kleeneze 784 1,334 2,766
Other proprietary brands 6,907 6,671 13,869
UP brands 65,898 62,632 121,946
Licensed brands (Russell Hobbs) 5,640 7,475 14,376
Own label and other 2,912 9,377 13,813
Total 74,450 79,484 150,135
6 months ended 6 months ended Year ended
31 January 2026 31 January 2025 31 July 2025
Analysis of revenue by product: £'000 £'000 £'000
Small domestic appliances 34,069 29,134 58,981
Housewares 23,495 25,152 45,189
Laundry 7,529 9,805 18,703
Audio 6,593 7,751 12,786
Heating and cooling 815 1,741 3,611
Clearance 685 4,610 5,869
Others 1,264 1,291 4,996
Total 74,450 79,484 150,135
6 months ended 6 months ended Year ended
31 January 2026 31 January 2025 31 July 2025
Analysis of revenue by sales channel: £'000 £'000 £'000
Supermarkets 18,341 24,008 47,050
Discount retailers 27,053 22,433 43,368
Online channels 16,916 18,705 32,715
Other 12,140 14,338 27,002
Total 74,450 79,484 150,135
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 2026
will be only marginally lower than for the six months ended 31 January 2026.
8. Finance Costs
6 months ended 6 months ended Year ended
31 January 2026 31 January 2025 31 July 2025
£'000 £'000 £'000
Interest on bank loans and overdrafts 780 658 1,502
Interest on lease liabilities 84 105 200
Foreign exchange in respect of lease liabilities 1 12 (8)
Other interest payable and similar charges - (41) (43)
Total finance cost 865 734 1,651
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 2026 31 January 2025 31 July 2025
Profit for the year 1,723 3,629 5,807
Weighted average number of shares in issue 86,330,132 88,053,629 87,478,678
Less shares held by the UPGS EBT (2,693,428) (2,526,562) (2,497,631)
Weighted average number of shares - basic 83,636,704 85,527,067 84,981,047
Share options 555,547 843,302 1,393,056
Weighted average number of shares - diluted 84,192,251 86,370,369 86,374,103
Pence Pence Pence
Earnings per share - basic 2.1 4.2 6.8
Earnings per share - diluted 2.0 4.2 6.7
10. Dividends
6 months ended 6 months ended Year ended
31 January 2026
31 January 2025
31 July 2025
£'000 £'000 £'000
Final dividend paid in respect of the previous year 1,796 4,209 4,208
Interim declared and paid - - 1,305
1,796 4,209 5,513
Per share Pence Pence Pence
Final dividend paid in respect of the previous year 2.15 4.93 4.93
Interim declared and paid - - 1.55
2.15 4.93 6.48
An interim dividend of 0.9p per share was approved by the Board on 23 March
2026 and will be paid on 26 June 2026 to shareholders on record as at 29 May
2026 (ex-dividend date being 28 May 2026).
11. Bank borrowings
As at As at As at
31 January 2026
31 January 2025
31 July 2025
£'000 £'000 £'000
Current
Bank overdrafts 421 1,387 1,367
Revolving credit facility 5,000 5,000 5,000
Invoice discounting 4,576 8,155 6,825
Import loans 3,176 5,794 5,042
13,173 20,336 18,234
Less: Unamortised debt issue cost (92) (80) (60)
13,081 20,256 18,174
Total bank borrowings 13,081 20,256 18,174
The earliest that lenders of the above borrowings require repayment is as
follows:
In less than one year 13,173 20,336 18,234
Between one and two years - - -
Between two and five years - - -
Less: Unamortised debt issue cost (92) (80) (60)
13,081 20,256 18,174
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 2025: £5.0m; 31 July 2025 £5.0m), an invoice discounting
facility of £23.5m (31 January 2025: £23.5m; 31 July 2025 £23.5m) and an
import loan facility of £12m (31 January 2025: £12m; 31 July 2025: £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 2026
31 January 2025
31 July 2025
£'000 £'000 £'000
Trade receivables - held at amortised cost 23,840 24,890 25,779
Derivative financial instruments - assets - carried at FVTOCI 183 1,978 -
Derivative financial instruments - assets - carried at FVTPL 11 148 47
Trade and other payables (34,021) (28,716) (27,666)
Derivative financial instruments - liabilities - carried at FVTOCI (1,461) - (1,729)
Derivative financial instruments - liabilities - carried at FVTPL (173) (28) (99)
Borrowings - held at amortised cost (13,081) (20,256) (18,174)
Lease liabilities - held at amortised cost (2,996) (3,865) (3,422)
Cash and cash equivalents - held at amortised cost 3,351 2,521 4,063
b) Financial assets
The Group held the following financial assets at amortised cost:
As at As at As at
31 January 2026
31 January 2025
31 July 2025
£'000 £'000 £'000
Cash and cash equivalents 3,351 2,521 4,063
Trade receivables 23,840 24,890 25,779
27,191 27,411 29,842
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 2026
31 January 2025
31 July 2025
£'000 £'000 £'000
Trade payables 28,311 23,027 22.529
Borrowings 13,081 20,256 18,174
Lease liabilities 2,996 3,865 3,422
Other payables 5,710 5,689 5,137
50,098 52,837 49,262
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 2026
31 January 2025
31 July 2025
£'000 £'000 £'000
Forward currency contracts (1,451) 2,070 (1,828)
Interest rate swaps - 14 -
Interest rate caps 11 14 47
(1,440) 2,098 (1,781)
The following is a reconciliation of the financial instruments to the
statement of financial position:
As at As at As at
31 January 2026
31 January 2025
31 July 2025
£'000 £'000 £'000
Trade receivables 23,840 24,890 25,779
Prepayments and other receivables not classified as financial instruments 1,673 1,404 1,000
Trade and other receivables 25,513 26,294 26,779
As at As at As at
31 January 2026
31 January 2025
31 July 2025
£'000 £'000 £'000
Trade and other payables 28,311 28,716 27,666
Other taxes and social security not classified as financial instruments 2,659 3,364 2,069
5,710
Trade and other payables 36,680 32,080 29,735
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 2026 As at 31 January 2024 As at 31 July 2025
Buy Sell Buy Sell Buy Sell
USD$'000 62,000 - 76,500 - 59,400 -
EUR€'000 - 39,600 - 39,400 - 36,500
PLN'000 - 1,400 - 1,400 - 1,400
CNY'000 1,543 - 3,512 - 2,592 -
At 31 January 2026, all the outstanding contracts mature within 12 months of
the period end (31 January 2025: 19 months; 31 July 2025: 13 months). 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 2026 is a liability of £1,451,000 (31 January
2025: £2,070,000 asset; 31 July 2025: £1,828,000 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 2025.
Derivative financial instruments - Interest rate swaps and interest rate caps
The Group has entered into 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 2026, protection was in place over an aggregate
principal of £12,979,000 (31 January 2025: £8,527,000, 31 July 2025:
£13,200,000).
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 2025. 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 2026
31 January 2025
31 July 2025
£'000 No. of shares £'000 No. of shares £'000 No. of shares
Opening share capital 216 86,330,132 221 88,628,572 221 88,628,572
Share buy-backs - - (2) (1,058,680) (5) (2,298,440)
Closing share capital 216 86,330,132 219 87,569,892 216 86,330,132
14. Related party transactions
6 months ended 6 months ended Year ended
31 January 2026
31 January 2025
31 July 2025
£'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
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