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 and beldray.com, 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/.
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).
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 6 months ended 31 January 2026
Unaudited 6 months ended 31 January 2025
Audited year ended 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 hedging relationships
1,433
373
564
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 of the Company
2,061
5,406
4,796
Consolidated Statement of Financial Position
Note
Unaudited as at 31 January 2026
Unaudited as at 31 January 2025
Audited as at 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 6 months ended 31 January 2026
Unaudited 6 months ended 31 January 2025
Audited year ended 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 31 January 2026
6 months ended 31 January 2025
Year ended 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 31 January 2026
6 months ended 31 January 2025
Year ended 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 31 January 2026
6 months ended 31 January 2025
Year ended 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 31 January 2026
6 months ended 31 January 2025
Year ended 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 31 January 2026
6 months ended 31 January 2025
Year ended 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 31 January 2026
6 months ended 31 January 2025
Year ended 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 31 January 2026
6 months ended 31 January 2025
Year ended 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 31 January 2026
As at 31 January 2025
As at 31 July 2025
£'000
£'000
£'000
Current
Bank overdrafts Revolving credit facility Invoice discounting Import loans
421 5,000 4,576 3,176
1,387 5,000 8,155 5,794
1,367 5,000 6,825 5,042
Less: Unamortised debt issue cost
13,173 (92)
20,336 (80)
18,234 (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 Between one and two years Between two and five years Less: Unamortised debt issue cost
13,173 - - (92)
20,336 - - (80)
18,234 - - (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 31 January 2026
As at 31 January 2025
As at 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 31 January 2026
As at 31 January 2025
As at 31 July 2025
£'000
£'000
£'000
Cash and cash equivalents Trade receivables
3,351 23,840
2,521 24,890
4,063 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 31 January 2026
As at 31 January 2025
As at 31 July 2025
£'000
£'000
£'000
Trade payables Borrowings Lease liabilities Other payables
28,311 13,081 2,996 5,710
23,027 20,256 3,865 5,689
22.529 18,174 3,422 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:
The following is a reconciliation of the financial instruments to the statement of financial position:
As at 31 January 2026
As at 31 January 2025
As at 31 July 2025
£'000
£'000
£'000
Trade receivables Prepayments and other receivables not classified as financial instruments
23,840 1,673
24,890 1,404
25,779 1,000
Trade and other receivables
25,513
26,294
26,779
As at 31 January 2026
As at 31 January 2025
As at 31 July 2025
£'000
£'000
£'000
Trade and other payables Other taxes and social security not classified as financial instruments
28,311 2,659 5,710
28,716 3,364
27,666 2,069
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 31 January 2026
As at 31 January 2025
As at 31 July 2025
£'000
No. of shares
£'000
No. of shares
£'000
No. of shares
Opening share capital Share buy-backs
216 -
86,330,132 -
221 (2)
88,628,572 (1,058,680)
221 (5)
88,628,572 (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 31 January 2026
6 months ended 31 January 2025
Year ended 31 July 2025
£'000
£'000
£'000
Transactionswith 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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