25th Jun 2025 12:16
(Alliance News) - Ultimate Products PLC shares slumped on Wednesday as it warned that it expects full-year adjusted earnings before interest, tax, depreciation and amortisation below consensus, with sales weighted toward lower margin product categories.
Shares in Ultimate Products dived 28% to 53.30 pence in London on Wednesday.
The Manchester, England-based owner of homeware brands including Salter and Beldray said it expects an adjusted Ebitda for the year to the end of July of GBP12.5 million, against a consensus of GBP14.3 million.
It would also be below the GBP18.0 million it achieved in financial 2024.
The company said revenue in the four months to May rose 3% on-year, but sales were weighted toward lower margin product categories and sales channels, giving a gross margin similar to the first half.
Adjusted Ebitda for the four-month period was therefore flat at GBP3.6 million, despite a fall in freight rates.
Ultimate Products said it has also been impacted by a lower rate of order intake from its retail customers, with over GBP4 million of customer orders deferred from the fourth quarter of financial 2025 to the start of the next financial year.
As a result, the company said it expects revenue in the second half to be broadly flat compared to a year ago, with revenue for the full financial year down 4% from last year.
Looking ahead to the next financial year, Ultimate Products said the order books suggests it will be a "slow start to the year," as it is down 7.5% from a year prior.
It expects financial 2026 revenue to be lower again than financial 2025, at a level broadly in line with the current order book position.
The company said it is focused on a "number of initiatives" which it believes have the potential to deliver a "significant improvement" in its financial performance.
"This remains a hugely challenging trading environment given the wider macroeconomic uncertainty and weak consumer sentiment, and unfortunately our current performance reflects that," said Chief Executive Andrew Gossage.
"However, there are also a number of investments which we are making within our sales function to enhance its systems and processes and thus improve future performance. This is a clear priority for us, with a range of initiatives already underway. Ultimate Products has demonstrated time and time again its resilience in the toughest of circumstances, and despite the near-term uncertainty we remain as confident as ever in our long-term prospects."
By Michael Hennessey, Alliance News reporter
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