Improved FY23 Net Debt Expectations

UP Global Sourcing Holdings PLC

17 July 2023

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"). UPON PUBLICATION OF THIS ANNOUNCEMENT THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

17 July 2023

UP Global Sourcing Holdings plc

("Ultimate Products" or "the Group")

Year End Net Debt expected to be c.£15m, significantly better than market expectations

Ultimate Products, the owner of a number of leading homeware brands including Salter (the UK's oldest houseware brand, est.1760) and Beldray (est.1872), is pleased to announce that it expects its financial year end net debt to be in the region of £15m, which is significantly ahead of current market expectations of around £21m.

As announced on 7 June 2023, current trading remains in line with market expectations, which, due to the improved net debt position, is expected to result in a substantially improved net bank debt/adjusted EBITDA ratio of 0.7x as at 31 July 2023 (31 July 2022: 1.3x). The improved net debt performance is due to ongoing improvements in working capital management and the phasing of trading during the second half of the year.

Given that current interest rates are causing finance costs to increase, the Group is pleased that the lower net debt helps to mitigate these rises. In addition, the Group continues to hold a suite of hedging instruments composed of a number of interest rate caps and swaps, which have greatly reduced the effect that rising interest rates have had on its income statement.

Lower net debt and hedged interest rates will continue to result in financing charges at Ultimate Products being in line with current market expectations of £1.2m for the current year, and £0.9m for 2024.

The person responsible for arranging the release of this announcement on behalf of Ultimate Products is Chris Dent, Chief Financial Officer.

For more information, please contact:

Ultimate Products [phone]

Simon Showman, CEO

Andrew Gossage, Managing Director

Chris Dent, Chief Financial Officer

Shore Capital [phone]

Mark Percy

Malachy McEntyre

David Coaten

Iain Sexton

Powerscourt [phone]

Rob Greening

Sam Austrums

Oliver Banks

Notes to Editors

Ultimate Products is the owner of a number of leading homeware brands including Salter (the UK's oldest houseware brand, established in 1760) and Beldray (a laundry, floor care, heating and cooling brand that was established in 1872). According to its market research, nearly 80% of UK households own at least one of the Group's products.

Ultimate Products sells to over 300 retailers across 38 countries, and specialises in five product categories: Small Domestic Appliances; Housewares; Laundry; Audio; and Heating and Cooling. Other brands include Progress (cookware and bakeware), Kleeneze (laundry and floorcare), Petra (small domestic appliances) and Intempo (audio).

The Group's products are sold to a broad cross-section of both large national and international multi-channel retailers as well as smaller national retail chains, incorporating discount retailers, supermarkets, general retailers and online retailers.

Founded in 1997, Ultimate Products employs over 370 staff, a significant number of whom have joined via the Group's graduate development scheme, and is headquartered in Oldham, Greater Manchester, where it has design, sales, marketing, buying, quality assurance, support functions and warehouse facilities across two sites. Manor Mill, the Group's head office, includes a spectacular 20,000 sq ft showroom that showcases each of its brands. In addition, the Group has an office and showroom in Guangzhou, China and in Cologne, Germany.

Please note that Ultimate Products is not the owner of Russell Hobbs. The company currently has licence agreements in place granting it an exclusive licence to use the "Russell Hobbs" trademark for cookware (NB this does not include Russell Hobbs electrical appliances).

For further information, please visit www.upgs.com

 

END