Pre-Close Trading Update and Notice of Results

RNS Number : 9336V

UP Global Sourcing Holdings PLC

15 August 2022

 

15 August 2022

UP Global Sourcing Holdings plc

"Ultimate Products" or "the Group"

PRE-CLOSE TRADING UPDATE AND NOTICE OF RESULTS

 A record financial performance

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 its trading update for the financial year ended 31 July 2022 ("FY22").

Overview

Unaudited Group revenues increased 13% to a record £154.2m (FY21: £136.4m), driven by the earnings enhancing acquisition of Salter, and a resilient performance of the core business, with underlying organic growth of 1.0% to £137.9m (FY21: £136.3m) . Growth has been particularly strong with our supermarket customers, which now represent our largest sales channel.

Unaudited underlying EBITDA* increased by 41% to a record £18.8m (FY21: £13.3m), in line with market expectations (£18.7m). Unaudited underlying PBT* increased by 42% to £15.8m (FY21: £11.2m), in line with market expectations (£15.8m).

At the year end, the Group had a net bank debt/underlying EBITDA ratio of 1.3x (31 July 2021: 1.4x). The Group maintains comfortable levels of headroom within its bank facilities, with headroom at 31 July 2022 of £17.8m (31 July 2021: £16.2m).

Current trading

Current trading for FY23 is in line with market expectations.

 Commenting on the performance, Simon Showman, Chief Executive of Ultimate Products, said:

"We are delighted to have delivered record results despite the challenges of disrupted supply chains and a deteriorating macroeconomic backdrop. Increased sales into supermarkets, especially in Europe, have been key to this year's performance and will continue to be critically important components of our future growth plans.

Operationally, our robotics and automation initiatives are progressing well, and we are already starting to see some early productivity benefits. While the macroeconomic backdrop will continue to present headwinds, the resilience of this performance is yet another demonstration of Ultimate Products' ability to navigate and adapt to challenging conditions. The Board therefore remains confident in the future prospects for the Group."

Notice of results

The Group intends to announce its full year financial results on 3 November 2022.

*Underlying measures are stated before share-based payment expense and non-recurring items.

For more information, please contact:

Ultimate Products [phone]

Simon Showman, CEO

Andrew Gossage, Managing Director

Chris Dent, Finance Director

Shore Capital [phone]

Mark Percy

Malachy McEntyre

Powerscourt [phone]

Rob Greening

Sam Austrums

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

 

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