Ultimate Products cautious on outlook as annual revenue declines

Ultimate Products PLC on Wednesday said it expects financial 2027 trading to be similar to 2026 as subdued consumer demand and geopolitical uncertainty persist, after revenue fell in the financial year just ended.

Oldham, England-based Ultimate Products, which owns branded homeware products such as Salter and Beldray, said trading in the financial year that ended July 31 was in line with expectations, with revenue falling 3.5% to £144.9 million from £150.1 million, a touch above consensus of £144.8 million.

This reflected subdued consumer demand and a planned reduction in non-core third-party clearance sales, the firm explained. More positively, second-half revenue slipped just 0.3%, slowing from a 5.8% decline in the first half.

Sales of proprietary brands, including Salter and Beldray, rose 5.3% to £128.4 million, while licensed brand sales fell 24% and third-party clearance and white-label sales dropped 60%.

Adjusted earnings before interest, tax, depreciation and amortisation was £10.0 million, slightly ahead of £9.9 million consensus, but down from £12.5 million a year earlier. Gross margin narrowed to 22.6% from 23.2%.

Net bank debt improved to £8.6 million from £14.1 million.

"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," said Chief Executive Chris Dent.

Looking ahead, Ultimate Products said it expects financial 2027 trading to be similar to financial 2026 as subdued consumer demand and geopolitical uncertainty persist, compared with prior consensus for revenue of £147.1 million and adjusted Ebitda of £11.3 million.

"Whilst the group continues to strengthen its commercial function, the board expects the current backdrop of subdued consumer demand and geopolitical uncertainty to persist."

Shares in Ultimate Products fell 2.8% to 54.22 pence each in London on Wednesday afternoon.

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