Ultimate Products (LSE:ULTP) reported lower overall revenue for FY26 as cautious consumer spending and a deliberate reduction in non-core clearance activity weighed on sales, although growth across its proprietary brands provided a more positive signal for its longer-term strategy.
Unaudited revenue for the year stood at £144.9 million, representing a 3.5% decline from the previous year. In contrast, revenue generated by the group’s proprietary brands increased 5.3% to £128.4 million, highlighting continued progress in shifting the sales mix towards owned labels and strengthening brand equity.
Adjusted EBITDA for FY26 was £10.0 million, while gross margin eased to 22.6%. Operating costs remained broadly stable despite the group absorbing approximately £760,000 of restructuring charges associated with the transformation of its commercial function.
Ultimate Products also made progress in reducing its borrowings, with net bank debt falling to £8.6 million. This brought leverage down to 0.9 times adjusted EBITDA, giving the group greater financial flexibility as it continues to invest in its operational and commercial capabilities.
Trading showed signs of stabilisation during the second half, when revenue was broadly unchanged year-on-year compared with the decline recorded during the first six months. The performance points to greater resilience despite continued pressure across the wider general merchandise market.
Looking ahead, the board expects FY27 trading to be broadly comparable with FY26 as cautious consumer demand and geopolitical uncertainty continue to affect the operating environment. Nevertheless, management believes investments being made across the business should strengthen its ability to capture growth opportunities when market conditions improve.
A central part of this strategy is increasing market share and building the value of core proprietary brands including Salter and Beldray. The continued expansion of these brands could help improve the quality of Ultimate Products’ revenue mix while reducing its reliance on lower-value third-party clearance activity.
The broader investment outlook is supported by improved free cash flow and lower leverage, while a moderate price-to-earnings valuation and strong dividend yield provide additional support. Technical indicators are also constructive following an upward share-price trend, although overbought readings on the RSI and Stochastic indicators suggest some risk of near-term consolidation.
More About Ultimate Products plc
Ultimate Products plc is a UK homeware group that owns consumer brands including Salter and Beldray. Market research indicates that almost 80% of UK households own at least one product from the group’s portfolio.
The company sells small domestic appliances, housewares, laundry and audio products through more than 300 retailers across over 30 countries. Its products are also available through the group’s own digital channels and major third-party e-commerce platforms.
Founded in 1997 and headquartered in Oldham, Greater Manchester, Ultimate Products operates design, sales, marketing and warehousing facilities across two sites and maintains international showrooms in Guangzhou and Paris.
The group employs more than 300 people and operates a substantial Graduate Development Scheme. It also holds exclusive licensing agreements covering the Russell Hobbs trademark for cookware and laundry products, excluding electrical appliances.
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