REG - Ultimate Products - Trading Update

Ultimate ProductsAnnouncement

25/06/2025 07:00

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RNS Number : 2517O  Ultimate Products PLC  25 June 2025

25 June 2025

 

Ultimate Products plc

"Ultimate Products" or "the Group"

Trading Update

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 the following trading update.

During the four-month period from February to May 2025, unaudited Group
revenues increased by 3% on the equivalent period in FY24. However, sales have
been weighted towards lower margin product categories and sales channels,
resulting in a level of gross margin similar to that achieved in H1. Adjusted
EBITDA for the four-month period was therefore flat at £3.6m, despite a fall
in freight rates. The Group has also been impacted by a lower rate of order
intake by its retail customers, with over £4m of customer orders deferred
from Q4 FY25 to Q1 FY26.

As a result, H2 revenues are now expected to be broadly flat vs H2 FY24, with
FY25 revenue expected to be approximately 4% lower than last year.
Accordingly, the Board expects adjusted EBITDA for FY25 to be around £12.5m
(versus current consensus of £14.3m). Looking ahead to FY26, the current
order book indicates a slow start to the year (currently down 7.5% vs this
time last year). Given the current trading environment, the Board therefore
believes it is prudent to expect FY26 revenue to be lower than FY25, at a
level broadly in line with the current order book position.

In recent years the Group has delivered substantial improvements to its
branding, product development and operational performance, including the
deployment of robotic automation, AI and process change. The Group's focus now
is on replicating those improvements within the sales function, with a number
of initiatives underway which the Board is confident have the potential to
deliver a significant improvement in the Group's financial performance.

Commenting on the performance, Andrew Gossage, Chief Executive of Ultimate
Products, said:

"This remains a hugely challenging trading environment given the wider
macroeconomic uncertainty and weak consumer sentiment, and unfortunately our
current performance reflects that. However, there are also a number of
investments which we are making within our sales function to enhance its
systems and processes and thus improve future performance. This is a clear
priority for us, with a range of initiatives already underway. Ultimate
Products has demonstrated time and time again its resilience in the toughest
of circumstances, and despite the near-term uncertainty we remain as confident
as ever in our long-term prospects."

Financial summary, including consensus market expectations immediately prior
to this announcement:

                  FY24 (Actual)  FY25 (Consensus)  FY26 (Consensus)
 Revenue          £155.5m        £154.5m           £163.3m
 Adjusted EBITDA  £18.0m         £14.3m            £17.6m
 Adjusted PBT     £14.5m         £10.7m            £13.8m
 Adjusted EPS     12.3p          9.2p              12.0p

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR. Upon the publication of this announcement via a Regulatory Information
Service, this inside information is considered to be in the public domain.

For more information, please contact:

 

Ultimate Products +44 (0) 161 627 1400

Andrew Gossage, CEO

Chris Dent, CFO

 

Shore Capital +44 (0) 20 7408 4090

Malachy McEntyre (Corporate Broking)

Isobel Jones (Corporate Broking)

Mark Percy (Corporate Advisory)

David Coaten (Corporate Advisory)

Harry Davies-Ball (Corporate Advisory)

 

Cavendish Capital Markets Limited + 44 (0)20 7220 0500

Matt Goode (Corporate Finance)

Callum Davidson (Corporate Finance)

Trisyia Jamaludin (Corporate Finance)

Matt Lewis (Corporate Broking)

 

Sodali & Co +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
Paris, France.

 

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 and laundry (NB this
does not include Russell Hobbs electrical appliances).

 

For further information, please visit www.upplc.com
(https://url.avanan.click/v2/r02/___http:/www.upplc.com___.YXAxZTpzaG9yZWNhcDphOm86MDA2ZmZjNzc3MWQ1MjVlMDQ0ZTY2NDg1ZGU5NDE4Nzc6Nzo1YmMxOmNhZGIwOGJkMDBjOTlhNGM5NTdlY2U3Mjk0OGJmMmJkYjI4NTdmMGE4MjQ4ZDdjMDFjODJhMWNkMzViZjgwY2I6cDpUOk4)
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