Revenue and earnings fall for Ultimate Products

14th Aug 2024 10:40

(Sharecast News) - Homeware company Ultimate Products reported a 6.5% decrease in unaudited group revenue in an update on Wednesday, to £155.5m for the financial year just ended, from £166.3m a year earlier.

The London-listed firm, which owns the brands Salter and Beldray, put the decline down to factors including reduced supermarket orders due to overstocking, weakened consumer demand for general merchandise, and strong prior-year comparisons driven by high demand for energy-efficient air fryers in early 2023.

In line with market expectations, the company also reported a decrease in unaudited adjusted EBITDA by 11% to £18m, and a 14% drop in unaudited adjusted profit before tax to £14.4m.

Despite the declines, the group said its financial position remained solid, with net bank debt narrowed to £10.4m, down from £14.8m at the end of the 2023 financial year, resulting in a net bank debt to adjusted EBITDA ratio of 0.6x, well within its capital allocation policy.

As Ultimate Products entered the 2025 period, trading had started in line with expectations.

The company said it was navigating ongoing supply chain challenges, particularly the recent disruption in the Red Sea, which had significantly increased shipping rates.

While the issues had caused some instability, the group said it was actively working to mitigate the impact on gross margins as supply chains adjusted to new conditions.

Looking ahead, Ultimate Products said it was cautiously optimistic about 2025, focusing on adapting to the evolving market landscape and continuing to manage operational challenges effectively.

"Our 2024 performance was not without its challenges, but I am pleased to report that many of the temporary headwinds are now easing, as reflected in a healthy 2025 order book," said chief executive officer Andrew Gossage.

"As we look ahead to 2025 with cautious optimism, we are confident in the proven resilience of our business model and the ongoing demand for our fantastic range of leading homeware brands."

Ultimate Products said it would announce its full-year financial results on 29 October.

At 0954 BST, shares in Ultimate Products were down 0.73% at 138.98p.

Reporting by Josh White for Sharecast.com.