Ultimate Products (ULTP) H2 2025 earnings summary

Executive summary

• Revenue declined 3% year-over-year to £150.1m, reflecting challenging market conditions and anticipated reductions in air fryer and third-party close-out sales.

• Branded consumer goods business with Salter and Beldray accounting for 60% of revenue; focus on mass market, affordable, and attractive products.

• Significant transformation since IPO in 2017: over 80% of revenue now from owned brands, reduced customer and channel concentration, and improved operational execution.

• Operational improvements included new PIM software, C-suite promotions, and sales function transformation.

• UP brands, now 80% of sales, grew 4% and continued to outperform, with Beldray sales up 11%.

Financial highlights

• Revenue: £150.1m, down 3% from £155.5m year-over-year; gross profit fell 14% due to higher freight costs.

• Adjusted EBITDA: £12.5m, down 31% from £18.0m; adjusted EPS: 7.4p, down 40%; statutory EPS: 6.8p, down 44%.

• Gross margin at 23.2%, impacted by freight costs and sales mix.

• International sales, especially in the EU discounter channel, grew 42% (GBP 8.6m), while UK sales were flat at £84m.

• Net bank debt increased to £14.1m (1.1x EBITDA), mainly due to working capital tied up in deferred customer orders.

Outlook and guidance

• Trading and order book progressing well at the end of Q1 FY26; guidance for FY26 maintained, with expectations for improvements in FY27 as sales function changes take effect.

• Current trading in line with expectations; external headwinds expected to persist short term.

• Board confident operational improvements will position the business for medium- and long-term growth.

• Order book visibility at 60-70% for the year, with key trading months ahead, especially for online.

• Freight costs normalized but remain volatile due to geopolitical risks.