UP Global Sourcing - Improved FY23 Net Debt Expectations

Ultimate Products

17/07/2023 07:00

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RNS Number : 0950G  UP Global Sourcing Holdings PLC  17 July 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION 2014/596/EU AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"). UPON PUBLICATION OF THIS
ANNOUNCEMENT THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC
DOMAIN.

 

 

17 July 2023

 

UP Global Sourcing Holdings plc

("Ultimate Products" or "the Group")

 

Year End Net Debt expected to be c.£15m, significantly better than market
expectations

 

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), is
pleased to announce that it expects its financial year end net debt to be in
the region of £15m, which is significantly ahead of current market
expectations of around £21m.

 

As announced on 7 June 2023, current trading remains in line with market
expectations, which, due to the improved net debt position, is expected to
result in a substantially improved net bank debt/adjusted EBITDA ratio of 0.7x
as at 31 July 2023 (31 July 2022: 1.3x). The improved net debt performance is
due to ongoing improvements in working capital management and the phasing of
trading during the second half of the year.

 

Given that current interest rates are causing finance costs to increase, the
Group is pleased that the lower net debt helps to mitigate these rises. In
addition, the Group continues to hold a suite of hedging instruments composed
of a number of interest rate caps and swaps, which have greatly reduced the
effect that rising interest rates have had on its income statement.

 

Lower net debt and hedged interest rates will continue to result in financing
charges at Ultimate Products being in line with current market expectations of
£1.2m for the current year, and £0.9m for 2024.

 

The person responsible for arranging the release of this announcement on
behalf of Ultimate Products is Chris Dent, Chief Financial Officer.

 

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) 20 7408 4090

Mark Percy

Malachy McEntyre

David Coaten

Iain Sexton

 

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 38 countries, and
specialises in five product categories: Small Domestic Appliances; Housewares;
Laundry; Audio; and Heating and Cooling. Other brands include Progress
(cookware and bakeware), Kleeneze (laundry and floorcare), Petra (small
domestic appliances) and Intempo (audio).

 

The Group's products are sold to a broad cross-section of both large national
and international multi-channel retailers as well as smaller national retail
chains, incorporating discount retailers, supermarkets, general retailers and
online retailers.

 

Founded in 1997, Ultimate Products employs over 370 staff, a significant
number of whom have joined via the Group's graduate development scheme, and is
headquartered in Oldham, Greater Manchester, where it has design, sales,
marketing, buying, quality assurance, support functions and warehouse
facilities across two sites. Manor Mill, the Group's head office, includes a
spectacular 20,000 sq ft showroom that showcases each of its brands. In
addition, the Group has an office and showroom in Guangzhou, China and in
Cologne, Germany.

 

Please note that Ultimate Products is not the owner of Russell Hobbs. The
company currently has licence agreements in place granting it an exclusive
licence to use the "Russell Hobbs" trademark for cookware (NB this does not
include Russell Hobbs electrical appliances).

 

For further information, please visit www.upgs.com
(https://url.avanan.click/v2/___http:/www.upgs.com/___.YXAxZTpzaG9yZWNhcDphOm86ZDZhMDVhZmI2NWEwMDk5NzE5Njg0NjkwYTFlMjc2OWI6NjplZDZhOjU4ODQ1YjJlMzk1MDg3MDQxZTRkMTk2N2NkNGM2MmQxNjUxZDg1NDViZjY5MjZhYjkxMTFlNzA2NDliYzA2ZmI6cDpU)

 

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