Newly-listed Ultimate Products expanding in Germany

Oldham-based consumer goods group Ultimate Products Global Sourcing which went public in a £105m float in March is celebrating excellent year-end results as it seeks to expand in Germany.

The company, which in April, 2018 plans to open a 10,000sq ft showroom in Cologne to exhibit its products, is reporting an increase in pre-tax profits rose of almost 19% to £7.4m in the year to July 31 (2016: £6.3m) and a 39.1% increase in turnover to a record £110m (2016: £79m).

Far from being fazed by the prospect of Brexit, managing director Andy Gossage said the company saw its activity in Germany as an opportunity rather than a “Brexit hedge”.

“Most of our products come from the Far East anyway,” he told TheBusinessDesk, “so we are unlikely to be affected by tariffs.”

International revenue grew 48.2% to £30.4m, representing 27.7% of total revenue.

During the period the company strengthened its board, including the appointment as chairman of James McCarthy, the former CEO of Poundland Group plc, and two further independent non-executive directors.

The refurbishment of the new 240,000sq ft warehouse at Heron Mill in Oldham was completed to plan and is now the group’s main distribution facility, creating improved operational efficiencies and significant additional capacity.

Significant progress was made in Germany, with a number of major retail accounts now open in the country and there are plans to open a showroom there.

Highlights of the product portfolio have included the performance of Progress, the cookware and kitchen electrical brand, which is now listed with several retailers including, as of January 2018, a major UK supermarket.

Meanwhile, Ultimate Products recruited the 100th graduate to the group’s graduate development scheme.

Chief executive Simon Showman said: “I am very proud of what Ultimate Products and its staff have achieved over this reporting period.

“To deliver this performance whilst at the same time adding a new distribution centre, executing an IPO and maintaining an excellent service to our retailers shows what a high-quality, flexible and resilient business Ultimate Products is.

“In the short-term, this flexibility and resilience will be needed as UK retailers and consumers alike adapt to a new and more challenging environment.

“However, it should also be noted that in a market where people have less money to spend on general merchandise, Ultimate Products provides a compelling proposition to consumers and retailers alike.

“We therefore continue to see substantial opportunities for the long-term growth and success of Ultimate Products.”