Ultimate Products revenue falls as consumers spend less

Ultimate Products reported a 3.4% drop in annual revenue to £150.1m for the year ended 31 July, as weaker demand for general merchandise offset growth in its core brands.

Sales of the group’s own UP brands, including Salter and Beldray, rose 4.3% to £121.9m, while licensed brand sales increased 19.2% to £14.4m.

However, third-party clearance and own-label sales fell 48% to £13.8m, following a strong prior year driven by supplier overstock clearances.

Unaudited adjusted EBITDA fell 31% to £12.5m, reflecting an additional £3.1m in freight costs, while operating costs were broadly flat at £22.3m.

Net bank debt rose to £14.1m, representing 1.1 times adjusted EBITDA, slightly above the group’s 1.0x target.

Trading in the current financial year is in line with expectations.

The London-listed firm said its board was also reviewing whether to shift its listing from the London Stock Exchange’s main market to AIM, citing the potential to attract new investors at 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, both in the UK and internationally.”

At 1112 BST, shares in Ultimate Products were down 2.02% at 53.4p.

Reporting by Josh White for Sharecast.com.