Interim Results

24 March 2026

Ultimate Products plc

("Ultimate Products", the "Company" or the "Group")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 JANUARY 2026

Continued focus on strengthening our commercial function to help drive future growth

Ultimate Products, the owner of leading homeware brands including Salter (the UK's oldest houseware brand, est.1760) and Beldray (est.1872), announces its unaudited interim results for the six months ended 31 January 2026 ("H1" or "H1 FY26").

Financial summary (unaudited)

Financial highlights

· Revenues down 6%, reflecting subdued consumer demand for general merchandise and a deliberate reduction in third-party clearance sales as we focus more on branded product sales

· Continued international expansion, with international branded sales up 19% to £27.7m, driven by branded sales to EU discounters, where sales increased 91%

· Adjusted EBITDA* of £5.0m (H1 FY25: £7.0m), which includes £0.4m of non-recurring costs relating to the reorganisation of the commercial function

· Operating cash conversion of 195% (H1 FY25: 16%), with a £4.6m reduction in working capital due to lower trading, and stock levels benefitting from more reliable freight times and customer order intake

Operational highlights

· Continued focus on strengthening the equity of UP proprietary brands (including Salter, Beldray, Progress, Kleeneze and Petra), which account for 88% of sales and delivered 5% growth in the period

· Five senior management promotions, strengthening the Operating Board and C-Suite across commercial activities, supply chain, operations, products and marketing

· Ongoing investment in enhancing the Group's commercial function to help drive future sales growth

· Greater operational efficiency achieved through our Product Information Management ("PIM") system, automation and AI

· Successful move of the Group's listing from the LSE's Main Market to AIM

Current trading and outlook

Notwithstanding the uncertain macroeconomic backdrop and the unpredictable geopolitical environment, the Board currently expects the trading trends seen in H1 to continue throughout the balance of the year. While the general merchandise market remains soft, particularly in the UK, Group sales are expected to be marginally ahead of market expectations, with profitability in line with consensus, reflecting the change in sales mix. The Board is confident that the ongoing investment in the Group's operational capabilities will enable it to maximise its future growth opportunities.

Commenting on the results, Andrew Gossage, Chief Executive of Ultimate Products, said:

"Our primary focus for the business continues to be the strengthening of our commercial function. We believe the investments we're making in this area will put the business on a stronger footing to return to top-line growth, and that our efforts to enhance productivity will increase the operational gearing of that growth."

Consensus market expectations immediately prior to this announcement

*Adjusted measures are before share-based payment expenses and non-recurring items

For more information, please contact:

Ultimate Products +44 (0) 161 627 1400

Andrew Gossage, CEO

Chris Dent, CFO

Cavendish Capital Markets Limited (Nomad and Joint Broker) + 44 (0)20 7220 0500

Matt Goode/ Callum Davidson/ Trisyia Jamaludin (Corporate Finance)

Matt Lewis (Corporate Broking)

Shore Capital (Joint Broker) +44 (0) 20 7408 4090

Malachy McEntyre/ Isobel Jones (Corporate Broking)

Mark Percy / David Coaten / Harry Davies-Ball (Corporate Advisory)

Sodali & Co +44 (0) 207 250 1446

Rob Greening/ Sam Austrums/ Oliver Banks

Notes to Editors

Ultimate Products is the owner of leading homeware brands including Salter (the UK's oldest houseware brand, established in 1760) and Beldray (a laundry and floor care brand established in 1872). According to its market research, nearly 80% of UK households own at least one of the Group's products.

Ultimate Products sells to over 300 retailers in over 30 countries - spanning discounters, supermarkets and general retailers, and ranging from large national and international multi-channel retailers to smaller retail chains. Its products are also available on salter.com and beldray.com, as well as major third-party online marketplaces. The Group specialises in four product categories: Small Domestic Appliances; Housewares; Laundry; and Audio. Other UP brands include Progress (bakeware, cookware and kitchen electrical), Kleeneze (laundry and floorcare), Petra (small domestic appliances), George Wilkinson (cookware and kitchen electrical) and Intempo (audio).

Founded in 1997, Ultimate Products is headquartered in Oldham, Greater Manchester, where it has design, sales, marketing, buying, quality assurance, support functions and warehouse facilities across two sites. Manor Mill, the Group's head office, includes a spectacular 20,000 sq ft showroom that showcases each of its brands. In addition, the Group has an office and showroom in Guangzhou, China and Paris, France. Ultimate Products employs over 300 staff and is certified as a Great Place to Work®. A significant number of its employees joined via the Group's Graduate Development Scheme, one of the biggest in the North West.

Please note that Ultimate Products is not the owner of Russell Hobbs. The Group currently has licence agreements in place granting it an exclusive licence to use the "Russell Hobbs" trademark for cookware and laundry (NB this does not include Russell Hobbs electrical appliances).

For further information, please visit https://upplc.com/.

BUSINESS REVIEW

Purpose & Strategy

FY26 is proving to be a year of significant change for Ultimate Products. While the first half saw a disappointing fall in the Group's overall sales and profits amid challenging trading conditions for general merchandise, we have made a number of important improvements to the ways in which we operate commercially. These changes have focused on strengthening the foundations of the business, better positioning us to maximise future growth opportunities and return to top-line growth. They should not be seen as a change to our strategy, but rather a reaffirmation of, and recommitment to, it.

Our route to commercial success is built upon the interaction of three core components - brand, products and sales. During the period, the structure of the commercial function was refreshed through the promotions of Duncan Singleton to Chief Commercial Officer, Katie Maxwell to Chief Product Officer and Tracy Carroll to Chief Marketing Officer. Together, this triumvirate will drive meaningful transformation of the commercial function through clearer accountability and closer collaboration. Alongside this, the promotions of David Bloomfield to Chief Supply Chain Officer and Craig Holden to Chief Operating Officer further strengthen the Group's C-suite. Collectively, this leadership team, supported by the rest of the wider business, will drive the long-term success of Ultimate Products.

Our purpose is to be the 'Home of Brands'. Over time, the Group has transformed from a sourcing and trading business to an owner of brands and a strategic partner to retail customers, selling products that resonate with consumers. Our key brands, which will continue to be the engine of sales growth, are Salter and Beldray, and they are supported by Petra, Progress, George Wilkinson, Kleeneze, and our licensed brand Russell Hobbs. We are pleased that, during the period, our branded sales grew by 2%, with UP proprietary brand sales delivering 5% growth.

Although our brands are key to our long-term strategic success, they have not always been given the commercial primacy they required. This was especially true during FY24, when widespread industry overstocking led to a high availability of clearance parcels. While Ultimate Products originated as a clearance and sourcing business, and the skills relating to these activities remained embedded in our commercial function, it became clear that the strategic drawbacks of this line of business outweighed its short-term tactical benefits. 

Third-party clearance sales are typically higher-margin, but they are one-off, volatile and ultimately proved to be cannibalistic rather than additive to our top line. They also distracted both our commercial function and our retail customers from delivering long-term brand-led relationships. As a result, during H1, we took the decision to close the Group's clearance division. While this marked a departure from UP's historic roots, it was a strategically necessary step to sharpen our focus on branded growth and support our ambition to become the 'Home of Brands'.

Our ability to identify consumer trends that make our branded products desirable to both consumers and retailers is the cornerstone of our product development. This area is the largest use of resource and capital allocation within our business, and it is therefore vital that the process is as effective as possible. All decisions and activities relating to product development now sit under Katie Maxwell, the newly created Chief Product Officer, allowing for a more coordinated approach and clearer ownership of product outcomes. Rather than a siloed structure whereby buying teams developed product based on instinct alone, decisions are now based on data-driven analysis of exactly what our consumers want on their counter tops and, therefore, exactly what our retailer customers want on their shelves.

An important element of the streamlining of this process has been the implementation of our Product Information Management ("PIM") system. This, supported by efficiencies we are gaining through the use of Robotic Process Automation and AI, reduces the time required for lower-value level tasks, allowing the team to focus more on the higher-value aspects of the NPD process. Developing better branded products, where the end consumer and retail customer are the beginning of the lifecycle of a new product, will result in higher and more consistent return rates on the investment that we make in this area.

However, it is in our approach to sales, under the leadership of Duncan Singleton, our Chief Commercial Officer, that we have seen the most significant changes with regards to how our commercial function operates. Given the origins of our business, the primary skills of our sales function were previously geared towards selling third-party clearance and white-label products, rather than our UP proprietary branded products. Building long-term commercial partnerships with retail customers requires a deep understanding of their needs, supported by detailed data gathering and analysis. This approach is not focused on the sale made today, but on developing shared, long-term plans for the next five years, including the pipeline of products and brand progression. With this in mind, during the period we restructured and strengthened the sales function to ensure it has the right capabilities and skills to better understand and anticipate customer needs. This will support sustainable sales growth and enable the business to build long-term value.

Trading

During the period, unaudited Group revenues decreased 6% (£5.0m) to £74.5m (H1 FY25: £79.5m). The fall in year-on-year sales can largely be attributed to our decision to focus on sales of branded products.

In line with our strategic plans, international branded sales grew strongly, up 19% to £27.7m (H1 FY25: £23.4m). This was driven by a 91% increase in branded sales to European discounters, which reached £19.0m. Growth in Europe is strategically important for the Group, as our market penetration there remains significantly lower than in the UK. Our ambition, on which we are making encouraging initial progress, is to grow our market share in the sizable European market by leveraging our first-class capabilities and our trusted UK brands.

In the UK, branded sales declined 6% to £43.8m (H1 FY25: £46.7m), reflecting the well-documented challenging trading conditions in this market. However, it also reflects the stagnation over the past decade of our commercial function which, as set out above, we are in the process of rectifying.

The table below shows the breakdown of our sales by key sales channels (Supermarkets, Discounters, Online & Other) and geographical location (UK & International), as well as breaking out the non-strategic sales of third-party clearance and white label ("3PC & WL"). In previous periods we have also broken out the sales of air fryers. However, in the current period these have been stable at £4.8m (H1 FY25: £4.9m).

Overall, third-party clearance and white-label sales declined by £6.5m, reflecting the decision to close the clearance division. Branded sales rose 2% to £71.5m (H1 FY25: £70.1m), with UP proprietary sales up 5% and licensed sales down 24%. Licensed sales are primarily sales of Russell Hobbs, where we have a four-year rolling licence for cookware and laundry. The fall reflects a poor trading performance with international supermarkets (primarily in Germany) where sales were down 49%.

Branded sales in the UK were down 6% to £43.8m (H1 FY25: £46.7m), reflecting weak macroeconomic trading conditions. However, we believe that even in challenging trading conditions UP has the ability to improve its trading performance as we currently have a low market share. Our poor trading in the UK is reflected in the individual performance of our brands, as shown in the table below.

Although our branded sales were up 5% overall, Salter - which currently holds a strong market position in the UK but is less well known internationally - saw sales fall by 7%, broadly in-line with the 6% fall in UK branded sales. The UP proprietary brands that saw significant growth in the period are the ones we sell into European discounters, where branded sales have grown by 91%. This can be seen in the growth of Petra (up 333% to £4.0m) and George Wilkinson (up 22% to £4.2m). Beldray is sold across both supermarkets and discounters, and benefited from its significant rebrand in FY25, which led sales to grow by 13% to £19.9m.

Performance

Gross margin decreased slightly to 22.8% (H1 FY25: 23.2%). This fall occurred despite the 1.6bps benefit we saw in the period resulting from the stabilisation of freight rates. The overall reduction was due to the change in mix. Although third-party clearance sales, in the long-term, represent a poor quality of earnings due to their one-off nature, they tend to be at a higher gross margin. In addition, sales to larger discounters tend to be at a lower margin because of higher unit volumes. Furthermore, we also saw the £220,000 impact of the UK Government's Extended Producer Responsibility (ERP) tax.

Administrative expenses increased 5% (£0.5m) to £11.9m (H1 FY25: £11.4m), with the most significant increase being the non-recurring £430,000 of costs relating to the reorganisation of our commercial function. In addition, we continue to invest in robotic process automation and AI to help mitigate cost pressures and increase our level of future operational leverage. As such, our increased productivity has allowed us to decrease headcount by 9% to an average FTE of 324 (H1 FY25: 356). In the period, most of the benefit has been used to offset inflationary pressures such as the inflationary effects of the National Living Wage increase and the rise in employer National Insurance contributions, as well as our own commitment to an employee remuneration policy that is designed to attract and retain talent. In the future, the benefits should accrue more evenly between stakeholders as we enhance our operational capabilities to drive top-line growth.

The combination of a 6% fall in revenues, the gross margin impact of sales mix, and reorganisation costs increasing overheads has led to a 29% fall in adjusted EBITDA to £5.0m (H1 FY25: £7.0m).

Adjusted & statutory profit

Depreciation and amortisation decreased by 6% to £1.0m (H1 FY25: £1.1m). The finance charge increased by 18% to £0.9m (H1 FY25: £0.7m) as a result of the ending of the benefit we saw in relation to our interest rate caps and swaps taken out when interest rates were low, which ended in March 2025 and impacted adjusted profit before tax, which decreased 40% to £3.1m (H1 FY25: £5.2m). The tax charge for the year was 27.9% (H1 FY25: 28.4%), higher than the UK statutory rate of 25% due to the higher rate of tax paid on our European foreign branches.

During the period, the Group continued the project of replacing its core ERP system. Upgrading it will be a critical step in further enhancing our operational capabilities. The project is currently running as expected and to budget, with the cost in the current period being £328k (H1 FY25: £nil). We currently estimate that the total cost of implementing this system change will be in the region of £2m, and costs will be expensed in the period in which they occur. It is currently expected that the new system will launch during FY27. These costs have been shown separately in the Income Statement to better reflect the performance of the underlying business.

Following a shareholder vote on 12 December 2025 at the Company's AGM, on 15 January 2026 the Group changed its listing venue from the London Stock Exchange's Main Market to AIM. The Board continues to believe that, at the Company's current market capitalisation, the AIM market is the most suitable listing venue for the Group. The reduction in the administrative requirements will allow more time and resource to be focused on the execution of the Company's commercial growth strategy. In total, the costs associated with the change in listing venue amounted to £243,000 (H1 FY25: £nil). Again, these costs have been shown separately in the Income Statement to better reflect the performance of the underlying business

Earnings per share

As a result of our share buyback scheme the number of shares in issue has decreased from 88,628,572 at 31 July 2024 to 86,330,132 at 31 January 2026, with the weighted average number of shares (once the shares held in the EBT and taken into account) decreasing 2% to 83,636,705 (31 January 2025: 85,527,067).

As a result, adjusted profit after tax decreased 40% and adjusted earnings per share decreased by 38%. Statutory profit after tax decreased 53% and statutory earnings per share decreased by 51%.

Financing and cash flow

The Group generated £9.7m of cash from operating activities (H1 FY25: £1.1m), representing an operating cash conversion of 195% (FY25: 16%), as the Group saw working capital reduce by £4.6m. This was mainly due to the reduced level of trading of the Group but has also been positively impacted by more reliable freight times and order intake by customers.

As a result, at the period end, the Group had a net bank debt/adjusted EBITDA ratio of 0.9x (H1 FY25: 1.1x), which represents net bank debt of £9.7m (H1 FY25: £17.7m). During the year, the Group sees significant movements in its working capital requirement due to the timings of customer orders. As such, a longer view can be helpful when considering the level of gearing within the business, with the 12-month rolling average ratio of net bank debt/adjusted EBITDA being 1.4x (H1 FY25: 1.3x).

Capital Allocation Policy

It is the Board's intention to maintain the net bank debt/adjusted EBITDA ratio at around 1.0x, with the debt being used to fund the Group's working capital. The Board believes that this level of leverage is an efficient use of the Group's balance sheet and allows for further returns of capital to shareholders. The Board also intends to continue investing in the business for growth while returning around 50% of post-tax profits to shareholders through dividends, and to supplement this with share buybacks pursuant to a policy of maintaining net bank debt at around 1.0x adjusted EBITDA ratio.

In line with our policy, an interim dividend of 0.9 pence per share (H1 FY25: 1.55 pence per share) was approved by the Board on 23 March 2026 and will be paid on 26 June 2026 to shareholders on record as at 29 May 2026 (ex-dividend date being 28 May 2026).

Consolidated Income Statement

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position 

For the period ended 31 January

For the period ended 31 January

Notes to the Interim Results

1. General Information

Ultimate Products plc ('the Company') and its subsidiaries (together 'the Group') is a supplier of branded, value-for-money household products to global markets. The Company is a public limited company, which is listed on the Alternative Investment Market of the London Stock Exchange and incorporated and domiciled in the UK. The address of its registered office is Ultimate Products plc, Manor Mill, Victoria Street, Chadderton, Oldham OL9 0DD.

This consolidated condensed interim financial does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 July 2025 were approved by the Board of Directors on 27 October 2025 and delivered to the Registrar of Companies. The comparative figures for the financial year ended 31 July 2025 are an extract of the Company's statutory accounts for that year. The report of the auditor on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 (2) or (3) of the Companies Act 2006.

This consolidated condensed interim financial information is unaudited.

2. Basis of Preparation

The consolidated interim financial statements for the six months ended 31 January 2026 have been prepared in accordance with UK-adopted international accounting standards. They are unaudited and do not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The unaudited consolidated interim financial statements should be read in conjunction with the audited financial statements for the year ended 31 July 2025. The report of the auditor on those financial statements was unqualified and did not draw attention to any matters by way of emphasis of matter.

Going Concern Basis

The Directors have adopted the going concern basis in preparing this consolidated condensed interim financial information after assessing the resilience of the Group in severe but plausible scenarios, taking account of its current position and prospects, the principal risks facing the business, how these are managed and the impact that they would have on the forecast financial position. In assessing whether the Group could withstand such negative impacts, the Board has considered cash flow, impact on debt covenants and headroom against its borrowing facilities. The Group's projections, which cover the period to July 2026, show that the Group will be able to operate within its banking facilities and covenants. Therefore, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for at least 12 months from the date of approval of the Interim Results Statement.

Accounting Policies

The accounting policies and method of computations adopted in the preparation of these condensed consolidated interim financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 July 2025.

Adjusted Performance Measures (APMs)

APMs are utilised as key performance indicators by the Group and are calculated by adjusting the relevant IFRS measurement by share based payments and non-recurring items. The two main APMs which are used are Adjusted EBITDA and Adjusted EPS. The reconciliation of these items to IFRS measurements can be found in the Chief Financial Officer's Review. APMs are non-GAAP measures and are not intended to replace those financial measurements, but are the measures used by the Directors in their management of the business, and are, therefore, important key performance indicators (KPIs).

3. Operating Segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker has been identified as the Board. The Board is responsible for allocating resources and assessing performance of operating segments. The Directors consider that there are no identifiable business segments that are subject to risks and returns different to the core business. The information reported to the Directors, for the purposes of resource allocation and assessment of performance, is based wholly on the overall activities of the Group. The Group has therefore determined that it has only one reportable segment under IFRS 8. The results and assets for this segment can be determined by reference to the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income and the Consolidated Statement of Financial Position.

4. Principal Risks and Uncertainties

The Directors consider that the principal risks and uncertainties, which could have a material impact on the Group's performance in the remaining 6 months of the financial year, remain substantially the same as those stated on pages 44-45 of the Group's Annual Report for the year ended 31 July 2025, which is available on the Group's website, www.upplc.com.

5. Financial Instruments

The Group's activities expose it to a variety of financial risks: market risk (including foreign exchange risk, cash flow and fair value interest rate risk and price risk), credit risk and liquidity risk. The Group's exposure to foreign exchange risk is mitigated by entering into forward exchange contracts. Interest rate risk is managed by maintaining a portion of borrowings under the protection of interest rate swaps and caps. The Interim Results Statement should be read in conjunction with the Group's Annual Report for the year ended 31 July 2025, as it does not include all financial risk management information and disclosures contained within the Annual Report. There have been no changes in the risk management policies since the year-end.

6. Revenue

7. Seasonality

The Group has historically had a seasonal weighting towards H1, with retail demand being higher in the peak Christmas trading period. However, over the past few years, this pattern has become less pronounced, with sales growth weighted towards the less seasonal online channels. As a result, it is anticipated that the revenues for the second half of the year to 31 July 2026 will be only marginally lower than for the six months ended 31 January 2026.

8. Finance Costs

9. Earnings per Share

Basic earnings per share is calculated by dividing the net income for the period attributable to ordinary equity holders by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share amounts are calculated by dividing the profit attributable to owners of the parent by the weighted average number of ordinary shares in issue during the financial year, adjusted for the effects of potentially dilutive options. The dilutive effect is calculated on the full exercise of all potentially dilutive ordinary share options granted by the Group, including performance-based options which the Group considers to have been earned. The calculations of earnings per share are based upon the following:

10. Dividends

An interim dividend of 0.9p per share was approved by the Board on 23 March 2026 and will be paid on 26 June 2026 to shareholders on record as at 29 May 2026 (ex-dividend date being 28 May 2026).

11. Bank borrowings

The Group is funded by external bank facilities provided by HSBC. The total drawn and undrawn facilities comprise a revolving credit facility of £5.0m (31 January 2025: £5.0m; 31 July 2025 £5.0m), an invoice discounting facility of £23.5m (31 January 2025: £23.5m; 31 July 2025 £23.5m) and an import loan facility of £12m (31 January 2025: £12m; 31 July 2025: £12m). 

12. Financial Instruments

a) Principal financial instruments

The principal financial instruments used by the Group, from which financial instrument risk arises are as follows:

b) Financial assets

The Group held the following financial assets at amortised cost:

c) Financial liabilities

The Group held the following financial liabilities, classified as other financial liabilities at amortised cost:

d) Derivative financial instruments

The Group held the following derivative financial instruments, classified as fair value through profit and loss on initial recognition:

The following is a reconciliation of the financial instruments to the statement of financial position:

Derivative financial instruments - Forward contracts

The Group mitigates the exchange rate risk for certain foreign currency trade debtors and creditors by entering into forward currency contracts. At 31 January 2025, the Group was committed to:

At 31 January 2026, all the outstanding contracts mature within 12 months of the period end (31 January 2025: 19 months; 31 July 2025: 13 months). The forward currency contracts are measured at fair value using the relevant exchange rates for GBP:USD, GBP:EUR, GBP:CNY and GBP:PLN. The fair value of the contracts at 31 January 2026 is a liability of £1,451,000 (31 January 2025: £2,070,000 asset; 31 July 2025: £1,828,000 liability).

Forward currency contracts are valued using level 2 inputs. The valuations are calculated using the period end exchange rates for the relevant currencies which are observable quoted values at the period end dates. Valuations are determined using the hypothetical derivative method, which values the contracts based on the changes in the future cash flows, based on the change in value of the underlying derivative.

All of the forward contracts to buy US Dollars and some of those to sell Euros meet the conditions for hedge accounting, as set out in the accounting policies of the financial statements for the year ended 31 July 2025.

Derivative financial instruments - Interest rate swaps and interest rate caps

The Group has entered into interest rate caps to protect the exposure to interest rate movements on the various elements of the Group's banking facility. As at 31 January 2026, protection was in place over an aggregate principal of £12,979,000 (31 January 2025: £8,527,000, 31 July 2025: £13,200,000).

All of the interest rate swaps meet the conditions for hedge accounting, as set out in the accounting policies contained in the financial statements for the year ended 31 July 2025. Hedge accounting is applied in respect of the interest rate caps to the extent that their current valuation exceeds their amortised cost.

Interest rate swaps and caps are valued using level 2 inputs. The valuations are based on the notional value of the swaps and caps, the current available market borrowing rate and the swapped or capped interest rate respectively. The valuations are based on the current valuation of the present saving or cost of the future cash flow differences, based on the difference between the swapped and capped interest rates contracts and the expected interest rate as per the lending agreement.

13. Share Capital