The homeware brands group, Ultimate Products, has reported a dip in its full-year unaudited results. The decline is attributed to the previous year’s Christmas rush for air fryers.
Despite the slowdown, evidence of a healthy order book for the current financial year has been observed by the group.
Revenue Decline
Ultimate Products, based in Oldham, has seen its group revenues fall by 6.5% to £155.5m, compared to £166.3m the previous year. This decline is attributed to several factors.
The decrease was influenced by supermarket overstocking and weakened consumer demand for general merchandise, alongside strong prior year comparisons bolstered by an exceptional demand for air fryers in early 2023.
Profit and Debt Figures
In line with market expectations, the group reported an 11% decrease in unaudited adjusted EBITDA, down to £18m from £20.2m. Additionally, unaudited adjusted profit before tax fell by 14% to £14.4m, compared to £16.8m in the previous year.
The year-end net bank debt improved, standing at £10.4m, compared to £14.8m in the previous year. This represents a net bank debt/adjusted EBITDA ratio of 0.6x, within the group’s capital allocation policy of 1.0x.
Brand Performance
The group owns several leading homeware brands, including Salter and Beldray, two of the UK’s oldest houseware brands. Trading at the start of the current financial year aligns with market expectations.
The significant shipping rate increase due to Red Sea disruptions has stabilised. Supply chains are adapting to this new normal, and commercial teams are working to mitigate the short-term impact on gross margin.
Chief executive Andrew Gossage remarked, ‘Our FY24 performance faced challenges, but the temporary headwinds are easing. We look forward to FY25 with cautious optimism, confident in the resilience of our business model.’
Market Challenges and Adaptations
The group had warned three months ago about missing original forecasts for the year ending July 31, 2024. The recent unaudited figures confirm these concerns.
Despite these challenges, there is a positive outlook for the future with a healthy order book for FY25. The group is taking steps to address and adapt to market shifts and supply chain disruptions.
Future Projections
Ultimate Products anticipates announcing its full-year financial results on October 29. This announcement will provide more detailed insights into the group’s performance and future outlook.
The group is actively working on strategies to mitigate short-term impacts and leverage its strong portfolio of leading homeware brands.
Operational Insights
The shipping rate disruptions have prompted the group to adapt its operational strategies to maintain gross margins. The commercial teams are focused on ensuring stability and efficiency.
With a focus on resilience and adaptability, the group is poised to navigate through market challenges and optimise its performance in the coming financial year.
Ultimate Products has faced a challenging financial year, influenced by strong prior year performance and market disruptions. However, steps are being taken to address these issues.
As the group moves into FY25, there is cautious optimism about its ability to adapt and thrive. The resilience of its business model and strong brand portfolio are key strengths.
