Pre-Close Trading Update and AIM Listing Review
FY25 revenue £150.1m down 3.4%; adjusted EBITDA £12.5m down 31% due to freight costs and weak consumer demand.
vs expectations: in line
- Total revenue £150.1m (prior £155.5m)
- UP brands revenue £121.9m (prior £116.9m)
- Adjusted EBITDA £12.5m (prior £18.0m)
- Net bank debt £14.1m (prior £10.4m)
- Net bank debt/adjusted EBITDA ratio 1.1x (prior 0.6x)
- Operating costs £22.3m (prior £22.4m)
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FY25 in line with expectations; continued investment in operational improvements
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 2025 ("FY25", or "the period").
Overview
| FY25 | FY24 | Change | Change | |
|---|---|---|---|---|
| £m | £m | £m | % | |
| UP brands | 121.9 | 116.9 | 5.1 | 4.3% |
| Licensed brand** | 14.4 | 12.1 | 2.3 | 19.2% |
| Third party clearance & own label | 13.8 | 26.6 | (12.7) | -48.0% |
| Total | 150.1 | 155.5 | (5.4) | -3.4% |
Unaudited Group revenues were £150.1m, down 3.4% (FY24: £155.5m), reflecting subdued consumer demand for general merchandise. Third-party clearance & own label sales, which grew strongly during FY24 as suppliers dealt with their overstocks, declined by 48% to £13.8m in the period. However, sales of our UP brands rose by 4.3% to £121.9m.
In line with revised market expectations, unaudited adjusted EBITDA* was £12.5m, down 31%, impacted by an additional £3.1m of freight costs. Operating costs remained stable at £22.3m (FY24: £22.4m).
At the year end, the Group had net bank debt of £14.1m (FY24: £10.4m), which represents a net bank debt/ adjusted EBITDA ratio of 1.1x (FY24: 0.6x), marginally above the Group's targeted policy of 1.0x. The rolling 12-month average was 1.3x.
Current trading
Trading at the start of the current financial year is in line with market expectations.
Consideration of AIM listing
The Board is reviewing whether it would be in shareholders' best interests to change the Company's listing venue from the London Stock Exchange's Official List and Main Market to AIM, considering factors such as the potential to access new investors at the Company's current market capitalisation. Further updates will be announced as appropriate.
Commenting on the performance, Andrew Gossage, Chief Executive of Ultimate Products, said:
"We continue to operate in a challenging environment, with many consumers prioritising saving over spending. Although overall revenue declined, we are encouraged by the growth in sales of our UP brands, which remain a key differentiator and the driver of long-term value creation, both in the UK and internationally. We are confident that further investment and operational improvements within our business will better position us to take advantage of all commercial opportunities, win market share and deliver sustainable long-term growth."
*Adjusted measures are stated before share-based payment expense and non-recurring items
Financial summary, including consensus market expectations immediately prior to this announcement
| FY24 (Actual) | FY25 (Consensus) | FY26 (Consensus) | |
|---|---|---|---|
| Revenue | £155.5m | £149.2m | £137.7m |
| Adjusted EBITDA | £18.0m | £12.5m | £9.9m |
| Adjusted EPS | 12.3p | 7.6p | 5.2p |
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.