Ultimate Products (ULTP) H1 2025 earnings summary

Executive summary

• Revenue declined 6% year-over-year to £79.5m for H1 2025, with UK sales down 13% and international sales up 12%.

• Adjusted EBITDA fell 38% to £7.0m, and statutory profit before tax dropped 47% to £5.1m.

• Premier brands (Salter, Beldray) remained resilient, comprising 80% of sales and declining only 1%.

• European strategy delivered strong growth, especially with discounters (+39%), offsetting UK weakness.

• Investments in automation and new product management systems enhanced productivity.

Financial highlights

• Gross margin decreased to 23.2% (H1 2024: 26.7%) due to £2.0m in extra shipping costs from elevated freight rates.

• Adjusted profit before tax down 46% to £5.2m; adjusted EPS down 48% to 4.3p.

• Interim dividend per share reduced 37% to 1.55p, maintaining a 50% payout of post-tax profits.

• Net bank debt/adjusted EBITDA ratio rose to 1.3x (31 July 2024: 0.6x), with net bank debt at £17.7m.

• Cash from operating activities dropped to £1.1m (H1 2024: £14.4m) due to higher inventory from shipping delays.

Outlook and guidance

• Trading in line with revised FY25 expectations; full-year revenue expected flat, with H2 sales growth anticipated.

• Operating margins expected to improve in H2 as freight rates normalize and automation offsets cost inflation.

• Full-year adjusted EBITDA forecast to meet market expectations.