Consumer goods group reports strong progress with solid annual results
Oldham-based consumer goods group, Ultimate Products, has seen double digit percentage increases in its annual revenues and profits.
Announcing results for the year to July 31, today, it said it had achieved “a year of growth and development amidst unprecedented global disruption”.
Revenues jumped by 17.9% to £136.4m, while pre-tax profits rose by 13.7% to £9.5m.
The sales boost included a 4.4% increase in international revenues of £43.5m and a 23.2% improvement in online sales, of £20.6m.
During the year the group completed the £34m acquisition of Salter Brands from FKA Brands on July 15. It said Salter is now fully integrated and is expected to be significantly earnings enhancing in the current financial year. The acquisition substantially strengthens the group’s brand portfolio and enables the growth of Salter in a way that could not have been achieved previously, it said.
Ultimate Products revealed that celebrity chef, Heston Blumenthal, has developed a range of high precision kitchen scales, timers and thermometers with Salter.
The group also acquired PETRA, the German kitchen electrical brand, which will be relaunched and refreshed, before initially entering the German market, followed by launches into other territories.
Net debt stood at £18.9m compared with £3.8m the previous year, and the group has bank facility headroom of £16.2m, against £21.3m in 2020.
A full year dividend of 5.020p per share is recommended, which is a 26.9% improvement on the previous year.
Post reporting period, the group opened newly refurbished offices at Manor Mill, its global headquarters, following £1.8m of investment.
Current trading remains in line with expectations, with growth expected in 2022, despite the ongoing challenges of shipping availability and cost.
Chief executive, Simon Showman, said: “Once again, we are pleased to have demonstrated Ultimate Products’ resilience and adaptability against the extremely challenging background of the COVID-19 pandemic.
“While protecting the business and colleagues, as well as continuing to grow and innovate, we have increased support for our local communities, targeting help at those who have been most disadvantaged by the crisis.
“Undoubtedly, these achievements have been aided by our flexible model and strong balance sheet, but the key driver has been the remarkable response of colleagues to these exceptional circumstances.”
He added: “As restrictions ease, it is becoming clear that the pandemic has ushered in structural changes to consumer behaviours, which are to the benefit of Ultimate Products and that we believe are here to stay. More home working and home cooking, a greater emphasis on hygiene and cleanliness, and a more considered approach to spending all complement our long standing strategy of developing and building our portfolio of brands that focus on mass market and value-led consumer goods for the home.
“The board, therefore, remains confident in the group’s long term prospects.”
