Ultimate Products (ULTP) Trading Update summary

Financial performance

• FY24 unaudited group revenues fell 6.5% to £155.5m, impacted by supermarket overstocking and weaker consumer demand, with prior year comparatives boosted by strong air fryer sales.

• Adjusted EBITDA decreased 11% to £18.0m and adjusted PBT dropped 14% to £14.4m, both in line with market expectations.

• Net bank debt reduced to £10.4m, with a net bank debt/adjusted EBITDA ratio of 0.6x, well within the capital allocation policy.

• Adjusted EPS for FY24 was 12.3p, down from 15.4p in FY23.

Current trading and outlook

• Trading at the start of FY25 is in line with expectations, with a healthy order book and easing temporary headwinds.

• Shipping rate increases due to Red Sea disruption are stabilizing, with supply chains adapting and commercial teams working to mitigate margin impacts.

• Management expresses cautious optimism for FY25, citing business model resilience and ongoing demand for core brands.

Business overview

• Owns leading homeware brands including Salter and Beldray, with products in nearly 80% of UK households.

• Sells to over 300 retailers across 38 countries, specializing in small domestic appliances, housewares, laundry, audio, and heating/cooling.

• Employs over 370 staff, with headquarters in Oldham, UK, and offices in China and France.

• Holds exclusive licences for the Russell Hobbs trademark in cookware and laundry (excluding electrical appliances).