Ultimate Products (ULTP) investor relations material

Executive summary

• Revenue declined 6% year-over-year to £74.5m, mainly due to reduced clearance sales and subdued UK demand, but was marginally ahead of revised guidance.

• Adjusted EBITDA fell 29% to £5.0m, with adjusted EPS down 38% to 2.7p, impacted by £0.4m in non-recurring commercial reorganisation costs.

• Proprietary brands now account for 88% of sales and grew 5%, with international branded sales up 19% and EU discounter sales up 91%.

• Closure of the clearance division clarified brand positioning and focused on core brands, reducing revenue by GBP 6.5 million.

• Significant internal reorganization, senior management promotions, and ongoing investment in automation, ERP, and commercial functions to drive future growth.

Financial highlights

• Revenue: £74.5m, down 6% from H1 FY25 (£79.5m); gross profit decreased 8% to £16.9m; gross margin slipped to 22.8%.

• Adjusted EBITDA: £5.0m, down 29%; adjusted profit before tax dropped 40% to £3.1m; statutory profit before tax down 58% to £2.4m.

• Adjusted EPS: 2.7p, down 38%; statutory EPS: 2.1p, down 51%.

• Interim dividend per share: 0.9p, down 42%; share buybacks reduced shares in issue by 2%.

• Net bank debt reduced to £9.7m (down 45% year-over-year); net bank debt/adjusted EBITDA improved to 0.9x.

Outlook and guidance

• Group sales expected to be marginally ahead of market expectations, with profitability in line with consensus.

• Trading trends from H1 expected to persist for the remainder of FY26.

• Management targets mid-single digit growth in the UK and double-digit growth in Europe, contingent on market share gains.

• Ongoing investment in operational capabilities to support future growth.

• Cautious on consumer demand due to cost of living concerns and potential inflation in key inputs.