Pre-Close Trading Update and Notice of Results

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 its trading update for the financial year ended 31 July 2024 ("FY24").

Overview

Unaudited Group revenues decreased 6.5% to £155.5m (FY23: £166.3m) with supermarket ordering held back by overstocking, weakened consumer demand for general merchandise, and strong prior year comparatives having been bolstered by the exceptionally strong demand for energy efficient air fryers in H1 2023.

In line with market expectations, unaudited adjusted EBITDA* decreased by 11% to £18.0m (FY23: £20.2m) and unaudited adjusted PBT* decreased by 14% to £14.4m (FY23: £16.8m).

At the year end, the Group had a net bank debt of £10.4m (FY23: £14.8m), which represents a net bank debt / adjusted EBITDA ratio of 0.6x (FY23: 0.7x), well within the Group's capital allocation policy of 1.0x.

Current trading

Trading at the start of the current financial year is in line with market expectations. The significant increase in shipping rates, arising from disruption in the Red Sea, has seen some recent stabilisation and is leading supply chains to adapt to a new normal. While this process takes place, the Group's commercial teams are working hard, as they did in the previous shipping crisis, to mitigate the short-term impact on gross margin.

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

"Our FY24 performance was not without its challenges but I am pleased to report that many of the temporary headwinds are now easing, as reflected in a healthy FY25 order book. As we look ahead to FY25 with cautious optimism, we are confident in the proven resilience of our business model and the ongoing demand for our fantastic range of leading homeware brands."

Notice of results

The Group intends to announce its full year financial results on 29 October 2024.

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

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