TIDMUPGS
RNS Number : 3880J
UP Global Sourcing Holdings PLC
23 August 2021
23 August 2021
UP Global Sourcing Holdings plc
"Ultimate Products" or "the Group"
PRE-CLOSE TRADING UPDATE AND NOTICE OF RESULTS
Ultimate Products, the owner, manager, designer and developer of
an extensive range of value-focused consumer goods brands,
announces its trading update for the financial year ended 31 July
2021 ("FY21").
Overview
-- Completed the acquisition of Salter Brands Limited ("Salter")
from FKA Brands Limited on 15 July 2021: integration proceeding to
plan and is expected to be significantly earnings enhancing in
FY22
-- Unaudited Group revenues up 17.9% to GBP136.4m (FY20:
GBP115.7m), with growth across each of the Group's four strategic
pillars - i.e. international, supermarkets, online channels and
discount retailers - despite a challenging commercial environment
with significant operational and shipping disruption as a result of
COVID-19
-- Unaudited underlying EBITDA* increased by 28.3% to GBP13.3m
(FY20: GBP10.4m), and unaudited underlying PBT* increased by 36.6%
to GBP11.2m (FY20: GBP8.2m), (ahead of market consensus of
GBP10.8m)
-- Net bank debt increased by GBP15.1m to GBP18.9m (FY20:
GBP3.8m), reflecting GBP17.2m of increased borrowings to fund the
acquisition of Salter in July, offset by strong operating cash
flows during the financial year
-- Net bank debt/underlying EBITDA ratio of 1.4x at 31 July 2021
(31 July 2020: 0.4x). The Group maintains comfortable levels of
headroom within its bank facilities, with headroom at 31 July 2021
of GBP16.2m (31 July 2020: GBP21.3m)
Current trading and outlook
-- The FY22 order book for the core business, excluding the
effect of the recent Salter acquisition, is ahead of this time last
year
-- Shipping availability continues to present challenges with
forward orders from the Group's retail customers being prioritised
ahead of stock purchases. Management expects that global shipping
will remain disrupted until after Chinese New Year (February
2022)
-- Current trading remains in line with expectations, with
growth expected in FY22 both from the core business and through the
acquisition of Salter
Commenting on the performance, Simon Showman, Chief Executive of
Ultimate Products, said:
"Against the challenging backdrop that COVID-19 continues to
present, we are very pleased to have delivered a performance in
FY21 that is ahead of the market's expectations. As ever, I am
hugely proud of the hard work, dedication and professionalism of
the Ultimate Products team. As a result of their efforts, our
business is emerging from the pandemic with closer customer
relationships, a stronger portfolio of products, and in excellent
financial and operational shape.
In addition, the acquisition of Salter, the UK's oldest
housewares brand, has delivered a step change in the depth and
quality of the Group's brand portfolio, providing further
opportunities for future growth both domestically and
internationally. As a result, the Board remains confident in the
long-term prospects for the Group."
Notice of results
The Group intends to announce its full year financial results on
2 November 2021.
* Underlying EBITDA and underlying PBT are non-GAAP measures.
Both underlying EBITDA and underlying PBT exclude the transaction
costs from the acquisition of Salter, as well as the charge from
repaying monies previously claimed under the COVID-19 Job Retention
Scheme, and are calculated after adding back share-based payment
charges.
For more information, please contact:
Ultimate Products +44 (0) 161 627 1400
Simon Showman, CEO
Andrew Gossage, Managing Director
Graham Screawn, Finance Director
Shore Capital +44 (0) 20 7408 4090
Mark Percy
Edward Mansfield
James O'Neill
Powerscourt +44 (0) 207 250 1446
Rob Greening
Sam Austrums
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014.
Notes to Editors
Ultimate Products is an owner, manager, designer and developer
of a series of well-known brands focused on the home, selling to
over 300 retailers across 37 countries. It has six product
categories: Audio; Heating and Cooling; Housewares; Laundry;
Luggage; and Small Domestic Appliances. Its brands include Beldray
(laundry, floor care, heating and cooling), Intempo (audio), Salter
(kitchenware and scales), Constellation (luggage), and Progress
(cookware and bakeware).
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. Its
best-selling products include frying pans, mugs and speakers,
selling approximately one million of each every year.
Founded in 1997, Ultimate Products 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.
Ultimate Products' graduate development scheme was launched in
2012 and in 2020 it welcomed its 300th graduate. In total, Ultimate
Products now employs over 300 staff.
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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCFLFFLTAIFFIL
(END) Dow Jones Newswires
August 23, 2021 02:00 ET (06:00 GMT)
Ultimate Products (LSE:ULTP)
Historical Stock Chart
From Apr 2024 to May 2024
Ultimate Products (LSE:ULTP)
Historical Stock Chart
From May 2023 to May 2024