5th Nov 2019 10:08
(Alliance News) - Russell Hobbs and Salter cookwares licence holder UP Global Sourcing Holdings PLC on Tuesday brushed aside retail market challenges to report a full-year earnings rise.
The company, which develops consumer brands, reported a 41% revenue hike to GBP123.3 million from GBP87.6 million. Pretax profit in the year to July 31 also rose, by 51% to GBP8.2 million from GBP5.4 million.
UP, or Ultimate Products, said International revenue more than doubled to GBP48.5 million from GBP24.0 million with the UK segment seeing growth of 18% to GBP74.8 million from GBP63.5 million.
UP boosted its full-year dividend by 50% to 4.09 pence per share from 2.72p.
Post-period end, the company renewed its Russell Hobbs trademark licence in the UK and European Union until March 2023. UP has held the licence for the Russell Hobbs cookware lines since 2011.
Aside from its licence agreements, UP also owns the Beldray home appliances brand, Constellation, which creates colourful luggage, and Progress, which offers kitchenware utensils.
Chief Executive Simon Showman said: "We are delighted to have delivered substantial revenue and profit growth against such a challenging economic backdrop. It is particularly pleasing that this growth has been broad-based across all of our channels and customer types, with our online and international businesses continuing to trade particularly strongly.
"Our broadening customer base and the ongoing development of our portfolio of outstanding brands means that we have greater sales and profit diversification than ever before. This has been achieved while maintaining the high levels of service and operational excellence that our customers have come to expect from Ultimate Products, and which set us apart from our competitors."
Looking ahead, UP said the retail market in the UK remains challenging, though the firm's current trading is line with expectations. The order book for the current financial year is moderately ahead of the last.
Showman added: "Therefore, despite the wider market uncertainty, we remain confident in the future prospects of Ultimate Products."
The company also expects impact from Brexit to be limited, given that a "substantial majority" of its products are sourced from China, under World Trade Organization trade rules.
UP said: "The impact of Brexit on the group is largely limited to the potential adverse effect of a material devaluation in sterling resulting from a 'no deal' Brexit and the consequences thereof on volume, margins and the wider business sentiment in the UK, a market to which the Group is significantly exposed."
Shares in the company were 10% higher at 85.56 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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