**Summary of Ultimate Products PLCs Audited Results for the Year Ended 31 July 2025**
Ultimate Products PLC, owner of leading homeware brands like Salter and Beldray, reported its audited results for the financial year ended 31 July 2025 (FY25), which were in line with market expectations despite a challenging consumer environment.
**Financial Highlights**
**Revenue Decline** Total revenue decreased by 3% to £150.1 million, primarily due to a 32% drop in air-fryer sales (£4.8 million) and a 60% reduction in third-party close-out sales (£8.8 million). However, other sales increased by 6% (£8.2 million).
**Profit Margins** Gross profit fell by 14% to £34.8 million, with a gross margin of 23.2%, impacted by additional shipping costs and a change in sales mix. Adjusted EBITDA and adjusted profit before tax declined by 31% and 40%, respectively, to £12.5 million and £8.7 million.
**Dividend and Cash Flow** A full-year dividend of 3.70p per share was declared, in line with the policy of returning around 50% of post-tax profits to shareholders. Strong cash generation from operating activities was maintained at £10.3 million, with an 82% operating cash conversion.
**Debt and Liquidity** Net bank debt/adjusted EBITDA ratio increased to 1.1x, marginally above the target of 1.0x. The company maintains comfortable headroom within its bank facilities.
**Operational Highlights**
**Brand Strengthening** UP brands, accounting for 80% of sales, grew by 4%, with Beldray sales up 11% following a successful brand transformation. New product launches, such as the Beldray All-in-One Floor Cleaner (a Which? Best Buy), and Salters Slushie Maker, Crisp&Go, and VertiCook, demonstrated sustained product innovation.
**Operational Efficiency** Implementation of new Product Information Management (PIM) software improved training times, reduced errors, and enhanced product information quality.
**Leadership and Governance** Appointment of Andrew Milne and José Carlos González-Hurtado as Non-Executive Directors, and post-period end, five senior management promotions strengthened the leadership team.
**Current Trading and Outlook**
Current trading remains in line with market expectations. While short-term external headwinds persist, the company is confident that operational improvements will position it better for medium to long-term growth, particularly in the UK and internationally.
**Consideration of AIM Listing**
The Board is considering a change of listing venue from the London Stock Exchanges Main Market to AIM, deeming it more suitable given the companys current market capitalisation. Shareholder approval will be sought at the AGM on 12 December 2025.
**CEO Commentary**
Andrew Gossage, CEO, acknowledged the challenging year for consumer-facing businesses, citing macroeconomic pressures, elevated shipping costs, and weak consumer demand. Despite these challenges, the companys branded strategy and operational improvements, including the PIM system and leadership promotions, position it well for future growth.
**Financial Summary (FY24 vs. FY25)**
**Revenue** £155.5 million (FY24) vs. £150.1 million (FY25)
**Adjusted EBITDA** £18.0 million (FY24) vs. £12.5 million (FY25)
**Adjusted EPS** 12.3p (FY24) vs. 7.4p (FY25)
**Consensus for FY26** Revenue £137.7 million, Adjusted EBITDA £9.9 million, Adjusted EPS 5.2p
**Strategic Focus**
**Brand-Led Growth** Transition from a sourcing model to a Home of Brands, with UP brands now accounting for 81% of total sales.
**Product Innovation** Continued investment in product development, with around 600 new products launched annually.
**Operational Excellence** Implementation of advanced systems like PIM and ERP to enhance efficiency and productivity.
**Market Expansion** Focus on growing market share in the UK and Europe, particularly in underpenetrated segments.
**Conclusion**
Ultimate Products PLC navigated a challenging FY25 with resilience, maintaining its focus on brand strength, operational efficiency, and strategic growth. Despite short-term headwinds, the company is well-positioned to capitalize on improving trading conditions and expand its market presence in the UK and internationally.
| Metric | FY24 (Actual) | FY25 (Actual) | Change |
|---|---|---|---|
| Revenue | £155.5m | £150.1m | -3% |
| Gross Profit | £40.5m | £34.8m | -14% |
| Adjusted EBITDA | £18.0m | £12.5m | -31% |
| Adjusted Profit Before Tax | £14.4m | £8.7m | -40% |
| Statutory Profit Before Tax | £14.3m | £8.0m | -44% |
| Statutory EPS | 12.2p | 6.8p | -44% |
| Adjusted EPS | 12.3p | 7.4p | -40% |
| Full Year Dividend per Share | 7.38p | 3.70p | -49% |
| Net Bank Debt | £10.4m | £14.1m | +35% |
| Net Bank Debt/Adjusted EBITDA Ratio | 0.6x | 1.1x | +83% |