Ultimate Products ends year in record revenue, earnings position

UP Global Sourcing, trading as Ultimate Products, reported an 8% increase in full-year unaudited group revenues in a trading update on Tuesday, reaching a new record of £166.3m, rising from £154.2m year-on-year.

The London-listed firm, which owns brands including Beldray and Salter, said a significant driving force behind the growth was the remarkable 64% surge in revenues from the group's online division, supported by a favourable sales composition.

Additionally, it said it managed the growth without resorting to price inflation, ensuring that its branded homeware items remained both appealing and financially accessible to its customer base.

The growth trajectory was particularly pronounced in the second half of the year ended 31 July, with revenues surging 15% year-on-year.

Ultimate Products also reported an 8% increase in its unaudited adjusted EBITDA, amounting to a record £20.2m, aligning with the market's anticipated £20.1m.

The unaudited adjusted profit before tax figure saw 6% growth, reaching £16.8m, precisely meeting market expectations.

Ultimate Products also reported a significant reduction in its net bank debt, reporting that at year-end, it stood at £14.8m, down from £24.3m a year earlier.

That positioned the net bank debt-to-adjusted EBITDA ratio at 0.7x, a significant improvement from 1.3x in the prior financial year.

The enhanced performance in net debt was put down to improvements in working capital management, coupled with the pattern of trading in the latter half of the year, as it disclosed in an update on 17 July.

Finally, the company said its current trading projections for the 2024 period aligned with market expectations, maintaining a positive and consistent outlook for the future.

“We are delighted that our brands continue to resonate so well with our customers, enabling us to deliver strong revenue growth with no overall price inflation,” said chief executive officer Simon Showman.

“In achieving this, we are making good on our purpose of providing beautiful and competitively priced products to every home.”

Ultimate Products said it would announce its full-year financial results on 31 October.

At 0905 BST, shares in UP Global Sourcing Holdings were up 3.7% at 128.85p.

Reporting by Josh White for Sharecast.com.