Pre-Close Trading Update
Ultimate Products plc reported unaudited Group revenues of £144.9 million for the financial year ended 31 July 2026, a 3.5% decrease from the previous year, attributed to subdued consumer demand and a planned reduction in non-core sales. However, sales of its proprietary brands increased by 5.3% to £128.4 million, reflecting a strategic focus on brand equity. Unaudited adjusted EBITDA stood at £10.0 million, with gross margin at 22.6% and operating costs remaining stable at £22.8 million, including £760,000 in restructuring costs. Net bank debt reduced to £8.6 million, resulting in a net bank debt to adjusted EBITDA ratio of 0.9x. The company anticipates FY27 trading to be similar to FY26 due to persistent challenging market conditions.
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Ultimate Products, the owner 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 2026 ("FY26", or "the period").
Overview
| FY26 | FY25 | FY24 | Change: FY26 vs FY25 | ||
|---|---|---|---|---|---|
| £m | £m | £m | £m | % | |
| UP proprietary brands | 128.4 | 121.9 | 116.9 | 6.5 | 5.3% |
| Licensed brands | 11.0 | 14.4 | 12.1 | (3.4) | -23.6% |
| 3P clearance and white label | 5.5 | 13.8 | 26.6 | (8.3) | -60.0% |
| Total | 144.9 | 150.1 | 155.6 | (5.2) | -3.5% |
Unaudited Group revenues were £144.9m (FY25: £150.1m), down 3.5%, reflecting subdued consumer demand for general merchandise and the planned reduction in non-core third-party clearance sales. Sales of UP proprietary brands rose by 5.3% to £128.4m, as the Group continued its strategic focus on building the equity of its proprietary brands.
Unaudited adjusted EBITDA* was £10.0m, as sales mix reduced Gross Margin to 22.6% (FY25: 23.2%). Operating costs remained broadly stable at £22.8m (FY25: £22.3m) and included £760,000 of restructuring costs related to the transformation of the Group's commercial function.
At the year end, the Group had net bank debt of £8.6m (FY25: £14.1m), which represents a net bank debt / adjusted EBITDA ratio of 0.9x (FY25: 1.1x), marginally below the Group's targeted policy of 1.0x. The rolling 12-month average was 1.4x (FY25: 1.3x).
Current trading and outlook
Group H2 revenue was broadly flat (down 0.3% year-on-year), an improvement on the 5.8% decline reported in H1, despite cautious ordering across the wider general merchandise market. Looking ahead to FY27, whilst the Group continues to strengthen its commercial function, the Board expects the current backdrop of subdued consumer demand and geopolitical uncertainty to persist. As a result, while it is early in the financial year, the Board currently expects FY27 trading to be similar to FY26. In the longer term, the Board is confident that the ongoing investment in the Group's operational capabilities and commercial function will position the Group to maximise future growth opportunities.
Commenting on the performance, Chris Dent, Chief Financial Officer of Ultimate Products, said:
"Our primary focus during the year has been the transformation of our commercial function to drive the growth of our proprietary brands. Although the broader trading environment remains challenging, we believe the changes we are making will support our ambition to grow both market share and brand equity, allowing our key brands of Salter and Beldray to fulfil their potential."
Consensus market expectations immediately prior to this announcement
| FY25 (Actual) | FY26 (Consensus) | FY27 (Consensus) | |
|---|---|---|---|
| Revenue | £150.1m | £144.8m | £147.1m |
| Adjusted EBITDA | £12.5m | £9.9m | £11.3m |
| Adjusted EPS | 7.4p | 5.4p | 6.9p |
* Adjusted measures are before share-based payment expenses and non-recurring items
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.