Ultimate Products reveals record revenues and earnings, driven by online surge
A surge in online business helped generate record revenues and earnings at Oldham consumer goods group, Ultimate Products.
In an unaudited trading update for the year to July 31, 2023, today, the company, which owns a number of homeware brands including Salter and Beldray, unveiled an eight per cent boost in turnover and earnings before interest, tax depreciation and amortisation (EBITDA).
Sales hit £166.3m, up from £154.2m the previous year, while unaudited adjusted EBITDA was £20.2m, compared with £18.8m in 2022, which was in line with market expectations of £20.1m.
Unaudited pre-tax profits of £16.8m, up six per cent, were also in line with market expectations of £16.8m.
The group said it experienced exceptional growth in its online division, where revenues were up 64% year-on-year, together with an improved sales mix.
Revenue growth in the period was achieved with no overall price inflation helping to keep the group’s branded homeware products at prices which are attractive and affordable to consumers. Growth accelerated as the year progressed with second half revenues increasing 15% year-on-year.
At the year end, the group had a net bank debt of £14.8m, down from £24.3m in 2022, which represents a net bank debt/adjusted EBITDA ratio of 0.7x (FY22: 1.3x).
As announced on July 17, 2023, the improved net debt performance is due to ongoing improvements in working capital management and the phasing of trading during the second half of the year.
Current trading for fiscal year 2024 is in line with market expectations, the group said.
Chief executive, Simon Showman, said: “We are delighted that our brands continue to resonate so well with our customers, enabling us to deliver strong revenue growth with no overall price inflation. In achieving this, we are making good on our purpose of providing beautiful and competitively priced products to every home.”
The group intends to announce its full year financial results on October 31, 2023.
