Ultimate Products PLC (LSE:ULTP) reported revenue of £144.9 million for the financial year ended 31 July 2026, a decline of 3% from £150.1 million in FY2025, reflecting subdued consumer demand and a reduction in third-party clearance sales.
The owner of homeware brands including Salter and Beldray reported adjusted EBITDA of £10.0 million, compared with £12.5 million a year earlier, while statutory profit before tax declined 37% to £5.1 million.
International branded sales increased 20% to £56.5 million, contributing to a 2% rise in total branded revenue to £139.4 million. The company also reduced net bank debt by 39% to £8.6 million.
Ultimate Products said current trading remained in line with market expectations, with management continuing to focus on its proprietary brands, commercial operations and operational efficiency.
Annual Revenue Declines 3% to £144.9 Million
Ultimate Products reported revenue of £144.9 million for FY2026, compared with £150.1 million in the previous financial year.
The £5.2 million reduction reflected lower UK branded sales and the company’s decision to reduce third-party clearance and white-label activities.
UK branded revenue declined 7% to £82.9 million from £89.2 million, reflecting subdued demand for general merchandise.
International branded sales increased 20% to £56.5 million, compared with £47.1 million in FY2025.
Revenue from third-party clearance and white-label products declined 60% to £5.5 million from £13.8 million.
Despite the reduction in total group revenue, combined UK and international branded sales increased 2% to £139.4 million, compared with £136.3 million in the prior year.
The company said the changes reflected its strategy of concentrating on its own brands and reducing exposure to third-party clearance activities.
International Branded Sales Increase 20%
International branded revenue reached £56.5 million during FY2026, an increase of approximately £9.4 million from the previous year.
The international business accounted for a larger proportion of group revenue as UK sales declined.
Ultimate Products identified international branded sales as an important part of its commercial strategy, alongside efforts to return the UK business to growth.
The company’s proprietary brands include Salter, established in 1760, and Beldray, established in 1872.
Management said the continued development of these brands would remain central to its future sales strategy.
The group reported that proprietary brands now account for 88% of total sales.
Gross Profit Declines to £32.8 Million
Ultimate Products reported gross profit of £32.8 million for FY2026, compared with £34.8 million in FY2025.
The reduction of £2.0 million represented a year-on-year decline of 6%.
Gross margin decreased to 22.6% from 23.2%, a reduction of 0.6 percentage points.
The decline occurred alongside lower overall revenue and changes in the composition of group sales.
The company continues to focus on its proprietary brand portfolio and improvements in commercial execution as part of its operating strategy.
Adjusted EBITDA Falls 20% to £10 Million
Adjusted EBITDA declined 20% to £10.0 million during FY2026, compared with £12.5 million in the previous financial year.
The reported figure included £0.8 million of reorganisation costs associated with restructuring the company’s commercial function.
Adjusted profit before tax decreased 28% to £6.3 million from £8.7 million.
Statutory profit before tax declined 37% to £5.1 million, compared with £8.0 million in FY2025.
Adjusted basic earnings per share fell 26% to 5.5p from 7.4p.
Statutory basic earnings per share declined 36% to 4.3p, compared with 6.8p in the previous year.
The company defines its adjusted measures as excluding share-based payment expenses and non-recurring items.
Net Bank Debt Falls 39% to £8.6 Million
Ultimate Products reduced net bank debt to £8.6 million at 31 July 2026, compared with £14.1 million a year earlier.
The £5.5 million reduction represented a decline of 39%.
Net bank debt relative to adjusted EBITDA improved to 0.9 times from 1.1 times in FY2025.
The company also reported a £4.1 million reduction in working capital, reflecting lower trading activity, reduced stock levels and more predictable freight delivery times.
The financial summary reported operating cash conversion of 130%, compared with 77% in FY2025. Separately, the financial highlights stated operating cash conversion of 140%, compared with 82% in the previous year.
The announcement did not explain the difference between these two sets of cash conversion figures.
Management identified inventory control and working capital management as contributors to the reduction in net debt.
Full-Year Dividend Declines to 2.7p Per Share
Ultimate Products reported a dividend of 2.7p per share for FY2026, compared with 3.7p in FY2025.
The reduction of 1.0p per share represents a year-on-year decline of 27%.
The lower dividend accompanied reductions in adjusted earnings, statutory profit and earnings per share.
The announcement did not provide further details of the dividend payment timetable.
Commercial Restructuring Targets UK Revenue Growth
Ultimate Products completed changes to its commercial function during FY2026.
The company said the restructuring was intended to improve customer relationships, strengthen commercial execution and support future sales growth.
Returning the UK business to growth remains a particular focus following the 7% reduction in domestic branded revenue during the year.
The restructuring also forms part of the group’s broader strategy of concentrating on proprietary brands rather than third-party clearance sales.
Ultimate Products acknowledged that the organisational changes had caused some short-term disruption.
Management expects the revised commercial structure to support its future operating objectives.
Automation and AI Deliver Operational Savings
Ultimate Products continued investing in operational systems, automation and artificial intelligence during FY2026.
The company reported that its Product Information Management system and related automation initiatives generated annualised time savings of approximately 33,000 hours.
These savings were associated with 355 tasks automated during the financial year.
Management said the initiatives were intended to improve operational efficiency and support the company’s commercial activities.
The group continues to invest in technology and business processes as part of its longer-term development strategy.
The announcement did not quantify the financial contribution of these operational savings to FY2026 profitability.
Simon Harrison Appointed Chief Executive
Ultimate Products appointed Simon Harrison as its new chief executive officer during the year.
The company said Harrison brings leadership, operational and commercial experience to the role.
His appointment follows the restructuring of the commercial function and continued investment in the group’s operating capabilities.
Ultimate Products also completed the transfer of its stock market listing from the London Stock Exchange’s Main Market to AIM during FY2026.
The company identified these developments as part of its wider operational and organisational changes.
FY2027 Trading Remains in Line With Market Expectations
Ultimate Products confirmed that current trading remains in line with market expectations.
The company continues to operate against a backdrop of subdued consumer demand and geopolitical uncertainty.
Management said its ongoing investment in commercial capabilities and operational systems is intended to support future growth opportunities.
Company-compiled analyst consensus immediately before the announcement indicated FY2027 revenue expectations of £145.5 million, compared with actual FY2026 revenue of £144.9 million.
Consensus adjusted EBITDA for FY2027 stood at £10.1 million, compared with the £10.0 million reported for FY2026.
Analysts also expected adjusted earnings per share of 5.5p for FY2027, unchanged from the FY2026 reported figure.
The consensus figures were compiled from forecasts published by Equity Development, Shore Capital and Canaccord Genuity as of 19 August 2026.
Ultimate Products did not announce revised numerical guidance for FY2027.
Chief Financial Officer Comments on Annual Results
Chris Dent, chief financial officer of Ultimate Products, commented on the company’s FY2026 performance and strategic changes:
“FY26 was a year of important strategic progress for Ultimate Products against a challenging consumer backdrop. Our proprietary brands continued to grow, particularly across our strategically important international segment, while we took the difficult but necessary decision to exit third-party clearance. This has sharpened our focus and reinforced the central role our proprietary brands will play in the Group’s long-term growth.
“We also made substantial changes to our commercial function to ensure we have the right capabilities, structure and ways of working to build deeper customer relationships and improve commercial execution. While this has inevitably created some disruption in the short term, we believe the business is now better placed to translate the strength of our brands into sustainable top-line growth. Alongside our continued investment in technology and Simon Harrison’s appointment as CEO, these changes give us renewed confidence as we enter the next phase of Ultimate Products’ development and pursue the growth opportunities ahead.”
The company continues to prioritise its branded product portfolio, international operations and commercial development as it enters FY2027.
More About Ultimate Products
Ultimate Products PLC (LSE:ULTP) is a UK-based homeware products company whose portfolio includes Salter and Beldray.
The group develops and distributes branded household products across the UK and international markets.
Its strategy focuses on proprietary brands, which account for approximately 88% of sales, alongside investment in commercial operations, automation and inventory management.
For the financial year ended 31 July 2026, Ultimate Products reported revenue of £144.9 million, adjusted EBITDA of £10.0 million and statutory profit before tax of £5.1 million.
International branded revenue increased 20% to £56.5 million, while net bank debt declined to £8.6 million.
The company reported that current trading remains in line with market expectations for FY2027.
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