Results reading: Audited Results for the Year Ended 31 July 2026
Revenue, adjusted EBITDA of £10.0m, gross margin and net debt were all in the August trading update, so the new information is below that line. The dividend is cut 27% to 2.7p, FY27 consensus EBITDA has been reset to about £10.1m (from £11.3m at the trading update), and the 130% cash conversion owes much to a one-off £4.1m working capital release. UK branded sales fell 7% and the new commercial team is described as too early to judge.
What changed against what was known
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New
The full-year dividend is cut 27% to 2.7p (FY25: 3.7p), in line with the stated policy of returning about 50% of post-tax profits.
“Dividend | 2.7 | 3.7 | (1.00) | -27%” -
Worse
The consensus table in the results shows FY27 adjusted EBITDA of £10.1m, down from £11.3m at the trading update. The results also drop the explicit 'FY27 similar to FY26' wording and say only that current trading is in line with market expectations.
Then · 19 Aug 2026 · Pre-Close Trading Update“Adjusted EBITDA | £12.5m | £9.9m | £11.3m”Now · this report“Adjusted EBITDA | £12.5m | £9.9m | £10.1m” -
Worse
Growth in branded sales to European discounters slowed. It was +91% in H1 and +64% for the full year, which implies roughly +44% in H2 (my calculation from the H1 figure of £19.0m). It is still the main growth engine.
Then · 24 Mar 2026 · Half-year Results“This was driven by a 91% increase in branded sales to European discounters, which reached £19.0m.” -
New
Operating cash flow was £13.0m, with a £4.1m working capital release from lower trading. This flatters cash conversion and the fall in net debt to £8.6m, and it is not a repeatable source of cash.
“The Group generated £13.0m of cash from operating activities (FY25: £9.6m), representing an operating cash conversion of 130% (FY25: 77%), as working capital reduced by £4.1m, due to the reduced level of trading of the Group.” -
New
Adjusted EPS was 5.5p, slightly above the 5.4p consensus. Statutory profit before tax fell 37% to £5.1m after about £1.0m of ERP and AIM-move costs plus higher share-based payment charges.
“Adjusted Basic EPS* | 5.5 | 7.4 | (1.89) | -26%” -
New
UK branded sales fell 7% to £82.9m. Management says the restructured commercial function is too early to judge, so a UK recovery is not yet visible.
“UK branded sales declined by 7% to £82.9m (FY25: £89.2m), reflecting the well-documented challenging trading conditions in this market.”
What the notes say – not in the headline numbers
The three largest customers account for £72.9m of revenue, about 50% of the £144.9m total. No prior-year comparison is given in the extract.
Half of sales rests on three buyers, and the European discounter growth is likely concentrated in a few of them.
“Included in the above, is revenue totalling £72,915,000 arising from sales to the Group’s largest three customers.”Gross invoice discounting borrowings fell to £1.1m from £6.8m, so lower receivables and stock helped cut net debt. The year-end 0.9x ratio sits against a 12-month rolling average of 1.4x.
Net debt is seasonally and temporarily low, so year-end leverage understates the typical gearing.
“Current bank borrowings include a gross amount of £1.1m (2025: £6.8m) due under invoice discounting facilities, which are secured by an assignment of and fixed charge over the trade debtors of Ultimate Products UK Limited.”Headroom within bank facilities is £20.7m (FY25: £11.8m) on total facilities of £45m. The extract gives no covenant levels or the size of the downside scenarios tested.
Liquidity looks comfortable, but the covenant cushion cannot be judged from what is disclosed.
“The Group maintains comfortable levels of headroom within its bank facilities, with headroom at 31 July 2026 of £20.7m (FY25: £11.8m).”Diluted EPS treats performance-based options as earned. The share-based payment charge rose to £186k from £16k, but the extract does not show the performance targets.
Options counted as earned in a year of falling profits raise the question of how demanding the targets are.
“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 highlights give operating cash conversion as 140% (FY25: 82%), while the table and Financing section give 130% (FY25: 77%).
The same year-on-year metric is reported two ways, which weakens confidence in the headline figure.
“Operating cash conversion of 140% (FY25: 82%), with a £4.1m reduction in working capital due to lower trading and stock levels benefitting from more reliable freight times”Watch at the next report
- Whether UK branded sales stop falling in H1 FY27 after the commercial restructuring.
- Whether European discounter sales keep growing despite the slowdown from +91% in H1 to roughly +44% in H2, and how dependent they are on the top three customers.
- Net bank debt against the 1.0x target once working capital rebuilds, and whether FY27 EBITDA reaches the roughly £10.1m consensus.
Read 28 Oct 2026 against the last statement, the previous results and the open promises. Quotes are the company's words; the rest is our reading. Not investment advice.