Ultimate Products (ULTP) H2 2026 earnings summary

Executive summary

• FY26 was a transition year: revenue fell 3% to £145m, mainly after clearance and white-label activity was sharply reduced; branded sales grew and operational changes established a platform for recovery.

• New CEO Simon Harrison prioritizes customer and colleague engagement, improving execution, and building Salter and Beldray; no immediate strategic overhaul is planned.

Financial highlights

• Revenue declined 3% to £145m from £150m; gross margin eased to 22.6% from 23.2%, reflecting the exit from higher-margin clearance and sales mix.

• Adjusted EBITDA fell 20% to just over £10m; adjusted PBT declined 28% to £6.3m and adjusted EPS fell 26%.

• Admin expenses remained broadly flat for four years; excluding £0.8m sales-team restructuring costs, operating expenditure was flat YoY.

• Proprietary-brand sales reached £128m, up 5% YoY; overall branded sales increased 2%.

Outlook and guidance

• FY27 trading is expected to be relatively flat and remains in line with market expectations; sales recovery, especially in the UK, is the near-term priority.

• The 12–18-month order book indicates UK branded sales are flattening after two years of decline, an early sign of stabilization before a return to growth.

• Existing operational capacity could support £200m–£300m revenue with only a couple of additional employees; growth depends on rebuilding the top line.

• European branded growth opportunities remain substantial, but near-term focus is to stabilize the UK base before pursuing new European customers.