Ultimate Products - Annual Report 2023 and Notice of AGM
17/11/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231117:nRSQ7070Ta&default-theme=true
RNS Number : 7070T Ultimate Products PLC 17 November 2023
17 November 2023
Ultimate Products plc
("Ultimate Products" or "the Group")
Posting of Annual Report and Accounts and Notice of Annual General Meeting
Ultimate Products, the owner of a number of leading homeware brands including
Salter (the UK's oldest houseware brand, est.1760) and Beldray (est.1872),
announces that, following the release of its final results statement on 31
October 2023, it has today published its Annual Report and Accounts ("the
Annual Report") for the year ended 31 July 2023.
The Company also announces that it will hold its Annual General Meeting
at 2.00pm on Friday 15 December 2023 at the Company's registered office
at Manor Mill, Victoria Street, Chadderton, Oldham, OL9 0DD.
Copies of the Annual Report and the Notice of the 2023 Annual General Meeting
are available to view on the Company's website: www.upplc.com
(https://url.avanan.click/v2/___http:/www.upgs.com/___.YXAxZTpzaG9yZWNhcDphOm86M2RjMDkxNjQ0ZGY2OTAyZDVkNzY5N2M2ZDAzMzNmMTg6Njo5MWU3OjJkNzdhMTVjM2Q0N2FmZTBhMmFiZWRmMzFkNGVhYWE1MzYzMjNjMjUxNzRiNTMzZTRhMjMwNjUxNGViYzIzNzc6cDpU)
. They have also been submitted to the National Storage Mechanism and will
shortly be available for inspection
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://url.avanan.click/v2/___https:/data.fca.org.uk/___.YXAxZTpzaG9yZWNhcDphOm86M2RjMDkxNjQ0ZGY2OTAyZDVkNzY5N2M2ZDAzMzNmMTg6Njo0YjZhOjJmYjNmYzY1OTVmZDhjMDAxNmUwNzIzM2JhNDg1ZDQwOThmNWI5YTRlOWUxYjk2OGUxZDdjNzVmMWQyYzliMmU6cDpU#/nsm/nationalstoragemechanism)
in compliance with paragraph 9.6.1 of the FCA Listing Rules. Copies of these
documents, together with a form of proxy for use in connection with the 2023
Annual General Meeting, have been posted or made available to the Company's
shareholders.
The final results statement and presentation of 31 October 2023 included a
set of condensed financial statements and a fair view of the development and
performance of the business and the position of the Company. The information
contained within the final results statement, together with the information
set out below, all of which is extracted from the Annual Report for the year
ended 31 July 2023, constitute the requirements of the Disclosure and
Transparency Rule 6.3.5(2)(b). This announcement is not a substitute for
reading the full Annual Report.
Directors' responsibility statement
The following Directors' responsibility statement is extracted from the Annual
Report and Accounts (page 75):
The Directors are responsible for ensuring that the Annual Report and
Accounts, taken as a whole, are fair, balanced and understandable, and
provides the information necessary for shareholders to assess the Group's
performance, business model and strategy.
Directors' responsibilities pursuant to DTR4
The Directors confirm to the best of their knowledge:
· The financial statements have been prepared in accordance with
the applicable set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit and loss of the Group and
Company.
· The Annual Report includes a fair review of the development and
performance of the business and the financial position of the Group and
Company, together with a description of the principal risks and uncertainties
that they face.
Principal risks and uncertainties
The following description of the principal risks and uncertainties that the
Group faces is extracted from the Annual Report and Accounts (pages 36 to 37):
The Board is responsible for the Group's risk management and internal control
systems and for reviewing their effectiveness, supported by the Audit and Risk
Committee. We review our business regularly to identify and document key
business risks. Once identified, risks are assessed according to the
likelihood and impact of the risk occurring and an appropriate mitigating
response is determined. This risk mitigation plan is then regularly monitored
by the Audit and Risk Committee with periodic review and discussion by the
Board as a whole.
The table below sets out the Group's principal risks as determined by the
Board, the gross risk movement from the prior year and the corresponding
mitigating actions. This represents the Group's current risk profile and is
not intended to be an exhaustive list of all risks and uncertainties that may
arise.
Area Risk Mitigation Movement
Macroeconomic factors Macroeconomic trends affecting consumer confidence and reducing non-food The Group's international business provides economic diversity and some ↔
protection
spending such as inflationary pressures and the effect of higher interest
rates, could against a downturn in the UK economy. Despite the challenging market
conditions,
affect retail demand. In the current year, the global economy has not fallen
into the Group sees the opportunity to increase its market share by developing new
recession as had been feared, as continued high employment and wage increases customer relationships, particularly internationally and through online
channels. The Group's products, being mass-market and value-led, are well
have supported consumer spending. This, however, means that interest rate placed in the event of an economic downturn. The business has well established
setting procedures for managing credit risk with its customers including credit
insurance, full details of which can be found on
agencies may need to keep interest rates higher, for longer, to bring
inflation back page 108 of the Annual Report.
towards target, which will eventually need to affect aggregate demand. As well
as
affected demand for our goods, reduced retail demand can also impact the
credit
worthiness of our customers.
Sourcing A major loss of continuity in the supply of goods for resale could adversely The Group maintains close relationships with its suppliers through regular ↑
affect factory visits and interaction with its local teams. Wherever possible,
multiple sources of supply are sourced for major products. The Group closely
the Group's revenues. In addition, we have heavy reliance on China as a source monitors developments in China and continues to consider and use alternative
of sources when practicable and viable. In the current year, buying teams have
begun to have an element of variable remuneration linked to decreasing
products. Any deterioration in, or changes to political, economic or social geographical supply concentration.
conditions in
China could disrupt the supply of goods or result in higher product cost
prices.
Supply chain management As a wholesaler, the Group has a significant working capital requirement. Stock levels and purchasing are closely managed, with all purchase orders ↓
Inefficient being
stock management could result in overstocking, which may adversely affect reviewed before being placed. The Group's systems facilitate close management
working capital. Conversely, understocking could limit the Group's ability to of the
maximise revenue opportunities. In the current year we have seen a reduction
in the risks related to the shipping crisis which affected global supply completion and timing of purchase orders placed. Stock is categorised between
chains, particularly in relation to the costs and availability of shipping 'free'
capacity.
and (pre) 'sold' to ensure that management focus on higher risk items. 'Free'
stock is
reviewed and prompt actions are taken where necessary.
Margin pressure As a wholesaler, the Group faces consistent price pressures from retail The Group's strategy of international growth, expansion of online channels and ↔
customers,
increased penetration of supermarkets continues to provide greater diversity
whilst facing changes to input costs such as freight costs, exchange rate and a
fluctuations,
balanced-margin portfolio. The Group also employs a combination of
factory gate price and changes in the costs of raw materials. In the current margin-enhancing initiatives including monitoring profitability of individual
year, the product lines, continued product innovation and refreshing product ranges,
balanced against the need to ensure that our products remain competitive.
fluctuations in relation to the valuation of sterling were significant last Furthermore, the Group seeks to constantly develop and implement productivity
Autumn, but have since steadied, and we have benefited from the fall in improvements. The Group actively manages foreign exchange risk through use of
shipping costs. forward contracts.
Protection of brands Failure to develop and enhance the product range of our brands could result in A high level of new product development focus is maintained and monitored by ↓
loss the
of our competitive advantage, which could impact on the Group's turnover. Board. Buying teams attend trade shows and carry out store and factory visits
Failure to
to develop or acquire new brands could restrict growth, given the Group's ensure that they are in touch with the latest consumer demands and trends. The
brand-led strategy. Failure to renew or delays in renewing licences for key Group continues to develop a "second tier" of brands and monitors
brands could impact turnover. During the year, the Group renewed its trademark opportunities to acquire new brands. The risk arising from the non-renewal of
licence agreement with Spectrum Brands, which grants the Group an exclusive licences has reduced significantly as a result of the Group's acquisition of
licence to use the "Russell Hobbs" trademark for non-electrical kitchen and the Salter brand and the renewal of our Russell Hobbs licence on a rolling
laundry products. basis. During the year, we have appointed our first Brand Director who is
helping to further formalise the way in which we develop and protect our
brands.
Climate Change and Environmental Climate change is a widely acknowledged global emergency, with the need to act We have established a Group-wide ESG Committee to extend oversight and ↑
faster becoming evident. Managing the greenhouse gas emissions associated with governance for monitoring the delivery of the Group's climate commitments. We
have stated a strong commitment to be Net Zero by 2050. This pledge is in the
our supply chain is critical to reducing our impact on climate change. The process of being supported by road maps and targeted decarbonisation plans. We
physical and are working internally and with third-party organisations in developing this
suite of metrics to enable us to monitor progress. We also continue to report
financial impacts of climate change are already being felt and are set to our climate-related financial disclosures (see TCFD section).
intensify. As it becomes increasingly likely that targets set by
intergovernmental bodies will be missed, the long-term risk for our business
continues to increase despite the mitigating actions we are taking.
Legal and regulatory Failure to comply with legal and regulatory requirements, including The Board monitors the changing landscape of laws and regulations. New legal ↔
environmental and
and regulatory requirements are discussed by the Audit and Risk Committee
climate change developments, both in the UK and in other countries in which whose
the Group operates, could result in fines or an adverse impact on the Group's
reputation. members contribute insight and experience of such matters. External technical
and
consulting expertise is sought when required. The Group has procedures for
ensuring ongoing compliance with legal obligations, including external annual
audits, and runs a programme of new-starter/refresher annual training.
Human resources Failure to attract and retain high-quality individuals, both in the UK and The Group's Graduate Development Scheme, along with links to local ↔
internationally, could impact on the delivery of the Group's strategy. universities, provides a steady inflow of high-quality staff to support the
future growth of the Group, whilst the Group's Senior Management Development
Programme and its 'Introduction
to Leadership' courses aim to create a succession of employees into senior
roles. A number of steps are taken to encourage the retention of the
employees, including the SAYE and PSP share ownership schemes to incentivise
its workforce and to further
improve retention.
Cyber security Risk of cyber crime with the potential to cause operational disruption, loss The Group continues to review and invest, where appropriate, in the ↔
or theft of information, inability to operate effectively, loss of online development
sales or reputational damage.
and maintenance of its IT infrastructure, systems and security. An external IT
security audit is carried out on an annual basis to ensure that any weaknesses
in our
systems are identified and can be rectified. New employees receive IT training
to
increase awareness of cyber risk. Disaster recovery, business continuity and
crisis
communication plans are maintained.
For more information, please contact:
Ultimate Products +44 (0) 161 627 1400
Simon Showman, CEO
Andrew Gossage, Managing Director
Chris Dent, Chief Financial Officer
Shore Capital +44 (0) 207 408 4090
Mark Percy
David Coaten
Iain Sexton
Malachy McEntyre
Isobel Jones
Cavendish Capital Markets Limited + 44 (0)20 7220 0500
Carl Holmes
Matt Goode
Abigail Kelly
Charlotte Sutcliffe
Powerscourt +44 (0) 207 250 1446
Rob Greening
Sam Austrums
Oliver Banks
Notes to Editors
Ultimate Products is the owner of a number of leading homeware brands
including Salter (the UK's oldest houseware brand, established in 1760) and
Beldray (a laundry, floor care, heating and cooling brand that was established
in 1872). According to its market research, nearly 80% of UK households own at
least one of the Group's products.
Ultimate Products sells to over 300 retailers across more than 40 countries,
and specialises in five product categories: Small Domestic Appliances;
Housewares; Laundry; Audio; and Heating and Cooling. Other brands include
Progress (cookware and bakeware), Kleeneze (laundry and floorcare), Petra
(small domestic appliances) and Intempo (audio).
The Group's products are sold to a broad cross-section of both large national
and international multi-channel retailers as well as smaller national retail
chains, incorporating discount retailers, supermarkets, general retailers and
online retailers.
Founded in 1997, Ultimate Products employs over 370 staff, a significant
number of whom have joined via the Group's graduate development scheme, and is
headquartered in Oldham, Greater Manchester, where it has design, sales,
marketing, buying, quality assurance, support functions and warehouse
facilities across two sites. Manor Mill, the Group's head office, includes a
spectacular 20,000 sq ft showroom that showcases each of its brands. In
addition, the Group has an office and showroom in Guangzhou, China and Paris,
France.
Please note that Ultimate Products is not the owner of Russell Hobbs. The
Company has licence agreements in place granting it an exclusive licence to
use the "Russell Hobbs" trademark for cookware (NB this does not include
Russell Hobbs electrical appliances).
For further information, please visit www.upplc.com
(https://url.avanan.click/v2/___http:/www.upgs.com/___.YXAxZTpzaG9yZWNhcDphOm86NDkwMmVmMjI5YjkwOGUwMjkzYmNkZDBlZTZiYWVlN2I6Njo4NjNkOjgxZWJiNWMwNTgxZjRiMmY3NTNlY2ZlMDFiMTJjN2I0MWFiZjM3MjIzNTM5OThhNTgzOGJkZWE1ODAxMjQ4ZTc6cDpU)
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END ACSFFISUMEDSEIF
Recent news on Ultimate Products
See all newsUltimate Products - Director/PDMR Shareholding
Ultimate Products - Director/PDMR Shareholding
Brief: Ultimate Products' Board Expects Q3 Flat Trading Trends To Continue For Rest Of Year
Ultimate Products - Q3 2026 Trading Update
Brief: Ultimate Products Appoints Simon Harrison As CEO, Effective October 26