Earnings and orders up as UP Global sees better times ahead
UP Global Sourcing, the private equity-backed retail supplier, has reported an improvement in annual earnings, and said it is seeing positive signs returning to the sector.
The company, which is based in Chadderton and has offices in China and Hong Kong, supplies retailers across the world. It has had a challenging time as the market contracted over the last couple of years, but says its order book for the three months to the end of October is 15% up on the previous year.
UPGS, previously known as Ultimate Products, designs, sources and supplies more than 3,000 products homewares and electrical producst to major multiple retailers. Investor LDC has held a minority stake in the business since 2005.
In the financial year to July 31 turnover was flat at £52.6m (2012: £53m), while EBITDA more than doubled from £0.7m to £1.5m, as a result of on-going cost management measures.
The increase in first quarter orders is down to a strengthening UK market and growth in North America. It said demand was strongest in its heating and cooling, small domestic appliance and luggage lines, including its patented super lightweight luggage brand ZFrame.
Founder and chief executive Simon Showman said: “There’s a sense that our core retail markets have turned a corner and are starting on a steady upward slope. Consumer confidence is however still delicate and it will take time before that recovery becomes more firmly entrenched.
“The measures that we implemented in 2011 and 2012 have helped us weather some stormy conditions, stabilise the core business and prepare us for recovery, and already in the current financial year we’re seeing some very encouraging signs.
He added: “As ever, ahead, the quality of our brands, the breadth of our proposition and our focus on innovation put us in good stead to take advantage of increasing momentum. To this we have added a genuine international reach, a credible online offer and an increasingly patent and IP based approach to product development.”
In addition to supplying the likes of Tesco and Asda, UPGS’ customers also include Fresh giant Carrefour, Coles in Australia and TJX and CVS Pharmacy in the US.
