UP Global Sourcing - Pre-Close Trading Update and Notice of Results

Ultimate Products

15/08/2023 07:00

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RNS Number : 2835J  UP Global Sourcing Holdings PLC  15 August 2023

 

 

15 August 2023

 

UP Global Sourcing Holdings plc

"Ultimate Products" or "the Group"

 

PRE-CLOSE TRADING UPDATE AND NOTICE OF RESULTS

 

 Record financial performance, driven by online expansion and an improved
sales mix

 

Growth achieved with no overall price inflation

 

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 its trading update for the financial year ended 31 July
2023 ("FY23").

 

Overview

Unaudited Group revenues increased 8% to a record £166.3m (FY22: £154.2m),
driven by exceptional growth at the Group's online division, where revenues
were up 64% year-on-year, together with an improved sales mix. Revenue growth
in the period was achieved with no overall price inflation helping to keep the
Group's branded homeware products at prices which are attractive and
affordable to consumers. Growth accelerated as the year progressed with H2
revenues increasing 15% year-on-year.

 

Unaudited adjusted EBITDA* increased by 8% to a record £20.2m (FY22:
£18.8m), in line with market expectations (£20.1m). Unaudited adjusted PBT*
increased by 6% to £16.8m (FY22: £15.8m), in line with market expectations
(£16.8m).

 

At the year end, the Group had a net bank debt of £14.8m (FY22: £24.3m),
which represents a net bank debt / adjusted EBITDA ratio of 0.7x (FY22: 1.3x).
As announced on 17 July 2023, 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.

 

Current trading

Current trading for FY24 is in line with market expectations.

 

 Commenting on the performance, Simon Showman, Chief Executive of Ultimate
Products, said:

"We are delighted that our brands continue to resonate so well with our
customers, enabling us to deliver strong revenue growth with no overall price
inflation. In achieving this, we are making good on our purpose of providing
beautiful and competitively priced products to every home."

 

Notice of results

The Group intends to announce its full year financial results on 31 October
2023.

 

*Adjusted measures are stated before share-based payment expense and
non-recurring items

 

 

 

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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