TIDMULTP
RNS Number : 7070T
Ultimate Products PLC
17 November 2023
17 November 2023
Ultimate Products plc
("Ultimate Products" or "the Group")
Posting of Annual Report and Accounts and Notice of Annual
General Meeting
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), announces that, following the release of
its final results statement on 31 October 2023, it has today
published its Annual Report and Accounts ("the Annual Report") for
the year ended 31 July 2023.
The Company also announces that it will hold its Annual General
Meeting at 2.00pm on Friday 15 December 2023 at the Company's
registered office at Manor Mill, Victoria Street, Chadderton,
Oldham, OL9 0DD.
Copies of the Annual Report and the Notice of the 2023 Annual
General Meeting are available to view on the Company's website:
www.upplc.com . They have also been submitted to the National
Storage Mechanism and will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism in
compliance with paragraph 9.6.1 of the FCA Listing Rules. Copies of
these documents, together with a form of proxy for use in
connection with the 2023 Annual General Meeting, have been posted
or made available to the Company's shareholders.
The final results statement and presentation of 31 October 2023
included a set of condensed financial statements and a fair view of
the development and performance of the business and the position of
the Company. The information contained within the final results
statement, together with the information set out below, all of
which is extracted from the Annual Report for the year ended 31
July 2023, constitute the requirements of the Disclosure and
Transparency Rule 6.3.5(2)(b). This announcement is not a
substitute for reading the full Annual Report.
Directors' responsibility statement
The following Directors' responsibility statement is extracted
from the Annual Report and Accounts (page 75):
The Directors are responsible for ensuring that the Annual
Report and Accounts, taken as a whole, are fair, balanced and
understandable, and provides the information necessary for
shareholders to assess the Group's performance, business model and
strategy.
Directors' responsibilities pursuant to DTR4
The Directors confirm to the best of their knowledge:
-- The financial statements have been prepared in accordance
with the applicable set of accounting standards, give a true and
fair view of the assets, liabilities, financial position and profit
and loss of the Group and Company.
-- The Annual Report includes a fair review of the development
and performance of the business and the financial position of the
Group and Company, together with a description of the principal
risks and uncertainties that they face.
Principal risks and uncertainties
The following description of the principal risks and
uncertainties that the Group faces is extracted from the Annual
Report and Accounts (pages 36 to 37):
The Board is responsible for the Group's risk management and
internal control systems and for reviewing their effectiveness,
supported by the Audit and Risk Committee. We review our business
regularly to identify and document key business risks. Once
identified, risks are assessed according to the likelihood and
impact of the risk occurring and an appropriate mitigating response
is determined. This risk mitigation plan is then regularly
monitored by the Audit and Risk Committee with periodic review and
discussion by the Board as a whole.
The table below sets out the Group's principal risks as
determined by the Board, the gross risk movement from the prior
year and the corresponding mitigating actions. This represents the
Group's current risk profile and is not intended to be an
exhaustive list of all risks and uncertainties that may arise.
Area Risk Mitigation Movement
Macroeconomic Macroeconomic trends The Group's international
factors affecting consumer confidence business provides economic
and reducing non-food diversity and some protection
spending such as inflationary against a downturn in
pressures and the effect the UK economy. Despite
of higher interest rates, the challenging market
could conditions,
affect retail demand. the Group sees the opportunity
In the current year, to increase its market
the global economy has share by developing new
not fallen into customer relationships,
recession as had been particularly internationally
feared, as continued and through online channels.
high employment and wage The Group's products,
increases being mass-market and
have supported consumer value-led, are well placed
spending. This, however, in the event of an economic
means that interest rate downturn. The business
setting has well established
agencies may need to procedures for managing
keep interest rates higher, credit risk with its
for longer, to bring customers including credit
inflation back insurance, full details
towards target, which of which can be found
will eventually need on
to affect aggregate demand. page 108 of the Annual
As well as Report.
affected demand for our
goods, reduced retail
demand can also impact
the credit
worthiness of our customers.
------------------------------------ ----------------------------------- ---------
Sourcing A major loss of continuity The Group maintains close
in the supply of goods relationships with its
for resale could adversely suppliers through regular
affect factory visits and interaction
the Group's revenues. with its local teams.
In addition, we have Wherever possible, multiple
heavy reliance on China sources of supply are
as a source of sourced for major products.
products. Any deterioration The Group closely monitors
in, or changes to political, developments in China
economic or social conditions and continues to consider
in and use alternative sources
China could disrupt the when practicable and
supply of goods or result viable. In the current
in higher product cost year, buying teams have
prices. begun to have an element
of variable remuneration
linked to decreasing
geographical supply concentration.
------------------------------------ ----------------------------------- ---------
Supply chain As a wholesaler, the Stock levels and purchasing
management Group has a significant are closely managed,
working capital requirement. with all purchase orders
Inefficient being
stock management could reviewed before being
result in overstocking, placed. The Group's systems
which may adversely affect facilitate close management
working capital. Conversely, of the
understocking could limit completion and timing
the Group's ability to of purchase orders placed.
maximise revenue opportunities. Stock is categorised
In the current year we between 'free'
have seen a reduction and (pre) 'sold' to ensure
in the risks related that management focus
to the shipping crisis on higher risk items.
which affected global 'Free' stock is
supply chains, particularly reviewed and prompt actions
in relation to the costs are taken where necessary.
and availability of shipping
capacity.
------------------------------------ ----------------------------------- ---------
Margin pressure As a wholesaler, the The Group's strategy
Group faces consistent of international growth,
price pressures from expansion of online channels
retail customers, and
whilst facing changes increased penetration
to input costs such as of supermarkets continues
freight costs, exchange to provide greater diversity
rate fluctuations, and a
factory gate price and balanced-margin portfolio.
changes in the costs The Group also employs
of raw materials. In a combination of margin-enhancing
the current year, the initiatives including
fluctuations in relation monitoring profitability
to the valuation of sterling of individual product
were significant last lines, continued product
Autumn, but have since innovation and refreshing
steadied, and we have product ranges, balanced
benefited from the fall against the need to ensure
in shipping costs. that our products remain
competitive. Furthermore,
the Group seeks to constantly
develop and implement
productivity improvements.
The Group actively manages
foreign exchange risk
through use of forward
contracts.
------------------------------------ ----------------------------------- ---------
Protection Failure to develop and A high level of new product
of brands enhance the product range development focus is
of our brands could result maintained and monitored
in loss by the
of our competitive advantage, Board. Buying teams attend
which could impact on trade shows and carry
the Group's turnover. out store and factory
Failure visits to
to develop or acquire ensure that they are
new brands could restrict in touch with the latest
growth, given the Group's consumer demands and
brand-led strategy. Failure trends. The Group continues
to renew or delays in to develop a "second
renewing licences for tier" of brands and monitors
key brands could impact opportunities to acquire
turnover. During the new brands. The risk
year, the Group renewed arising from the non-renewal
its trademark licence of licences has reduced
agreement with Spectrum significantly as a result
Brands, which grants of the Group's acquisition
the Group an exclusive of the Salter brand and
licence to use the "Russell the renewal of our Russell
Hobbs" trademark for Hobbs licence on a rolling
non-electrical kitchen basis. During the year,
and laundry products. we have appointed our
first Brand Director
who is helping to further
formalise the way in
which we develop and
protect our brands.
------------------------------------ ----------------------------------- ---------
Climate Climate change is a widely We have established a
Change and acknowledged global emergency, Group-wide ESG Committee
Environmental with the need to act to extend oversight and
faster becoming evident. governance for monitoring
Managing the greenhouse the delivery of the Group's
gas emissions associated climate commitments.
with We have stated a strong
our supply chain is critical commitment to be Net
to reducing our impact Zero by 2050. This pledge
on climate change. The is in the process of
physical and being supported by road
financial impacts of maps and targeted decarbonisation
climate change are already plans. We are working
being felt and are set internally and with third-party
to intensify. As it becomes organisations in developing
increasingly likely that this suite of metrics
targets set by intergovernmental to enable us to monitor
bodies will be missed, progress. We also continue
the long-term risk for to report our climate-related
our business continues financial disclosures
to increase despite the (see TCFD section).
mitigating actions we
are taking.
------------------------------------ ----------------------------------- ---------
Legal and Failure to comply with The Board monitors the
regulatory legal and regulatory changing landscape of
requirements, including laws and regulations.
environmental and New legal
climate change developments, and regulatory requirements
both in the UK and in are discussed by the
other countries in which Audit and Risk Committee
the Group operates, could whose
result in fines or an members contribute insight
adverse impact on the and experience of such
Group's reputation. matters. External technical
and
consulting expertise
is sought when required.
The Group has procedures
for ensuring ongoing
compliance with legal
obligations, including
external annual audits,
and runs a programme
of new-starter/refresher
annual training.
------------------------------------ ----------------------------------- ---------
Human resources Failure to attract and The Group's Graduate
retain high-quality individuals, Development Scheme, along
both in the UK and internationally, with links to local universities,
could impact on the delivery provides a steady inflow
of the Group's strategy. of high-quality staff
to support the future
growth of the Group,
whilst the Group's Senior
Management Development
Programme and its 'Introduction
to Leadership' courses
aim to create a succession
of employees into senior
roles. A number of steps
are taken to encourage
the retention of the
employees, including
the SAYE and PSP share
ownership schemes to
incentivise its workforce
and to further
improve retention.
------------------------------------ ----------------------------------- ---------
Cyber security Risk of cyber crime with The Group continues to
the potential to cause review and invest, where
operational disruption, appropriate, in the development
loss or theft of information, and maintenance of its
inability to operate IT infrastructure, systems
effectively, loss of and security. An external
online sales or reputational IT
damage. security audit is carried
out on an annual basis
to ensure that any weaknesses
in our
systems are identified
and can be rectified.
New employees receive
IT training to
increase awareness of
cyber risk. Disaster
recovery, business continuity
and crisis
communication plans are
maintained.
------------------------------------ ----------------------------------- ---------
For more information, please contact:
Ultimate Product s +44 (0) 161 627 1400
Simon Showman, CEO
Andrew Gossage, Managing Director
Chris Dent, Chief Financial Officer
Shore Capital +44 (0) 207 408 4090
Mark Percy
David Coaten
Iain Sexton
Malachy McEntyre
Isobel Jones
Cavendish Capital Markets Limited + 44 (0)20 7220 0500
Carl Holmes
Matt Goode
Abigail Kelly
Charlotte Sutcliffe
Powerscourt +44 (0) 207 250 1446
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 more than
40 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 Paris, France.
Please note that Ultimate Products is not the owner of Russell
Hobbs. The Company 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.upplc.com
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