Ultimate Products (ULTP) H1 2026 earnings summary

Executive summary

• Revenue declined 6% year-over-year to £74.5m, mainly due to reduced third-party 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.

• Strategic focus shifted to strengthening proprietary brands, now 88% of sales and up 5%, while closing the clearance division and reorganizing commercial functions.

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

• Successfully moved listing from LSE Main Market to AIM.

Financial highlights

• Revenue: £74.5m, down 6% from H1 FY25 (£79.5m), outperforming the guided 8% drop, mainly due to the closure of the clearance division, which reduced revenue by GBP 6.5 million.

• Adjusted EBITDA: £5.0m, down 29% from £7.0m; adjusted profit before tax down 40% to £3.1m.

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

• Interim dividend per share: 0.9p, down 42%, in line with policy to return ~50% of post-tax profits.

• 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 are 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 and cautious optimism regarding consumer demand amid cost-of-living and inflation concerns.