Ultimate Products Revenue Dips; Board Mulls AIM Listing Amidst Challenging Climate

In a trading update on Wednesday, Ultimate Products revealed that revenue fell in the last financial year as weaker consumer demand for general merchandise hit sales, though its core brands grew.

The owner of homeware brands including Salter and Beldray reported revenue of £150.1 million for the year ended 31 July, down 3.4% from £155.5 million in the previous year. 

Third-party clearance and own-label sales decreased by 48% to £13.8 million, following a surge in the prior year when suppliers sought to clear overstocked items. Sales of the group’s own brands rose 4.3% to £121.9 million.

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Adjusted EBITDA fell 31% to £12.5 million, in line with market expectations, with the decline partly due to £3.1 million of additional freight costs. Net bank debt increased to £14.1 million from £10.4 million, giving a debt-to-EBITDA ratio of 1.1x, just above the company’s target.

The group said trading at the start of the current financial year is in line with expectations.

The company also told investors that it is considering moving the company’s listing from the London Stock Exchange’s Main Market to AIM, citing the potential to attract new investors given its current market capitalisation.

“We continue to operate in a challenging environment, with many consumers prioritising saving over spending,” said Chief Executive Andrew Gossage. “Although overall revenue declined, we are encouraged by the growth in sales of our UP brands, which remain a key differentiator and the driver of long-term value creation.”

Founded in 1997 and headquartered in Oldham, Greater Manchester, Ultimate Products sells to more than 300 retailers across 38 countries.

The challenging consumer environment has also impacted other retail names. In a release today, Shoe Zone warned of a sharp drop in annual profit and scrapped its dividend policy, citing a further weakening in consumer confidence.