TIDMUPGS
RNS Number : 5646P
UP Global Sourcing Holdings PLC
11 February 2019
11 February 2019
UP Global Sourcing Holdings plc
"Ultimate Products" or "the Group"
TRADING UPDATE AND NOTICE OF RESULTS
H1 FY19 underlying revenue up 20.8%, driven by broad based
growth
Current trading ahead of expectations
Ultimate Products, the owner, manager, designer and developer of
an extensive range of value-focused consumer goods brands,
announces the following trading update for the six months ended 31
January 2019 ("the period").
Financial overview
-- Unaudited Group revenues increased by 36.0% (GBP17.4m) to
GBP65.8m (H1 2018: GBP48.4m), driven by good growth across each of
the Group's four strategic pillars - i.e. discounters, UK
supermarkets, online platforms and international customers
-- In addition, the Group's revenue performance from H1 FY18 to
H1 FY19 benefitted from the following one-off factors:
o As reported previously, revenue in the prior period (H1 FY18)
was reduced by approximately GBP4.5m as a result of the one-off
timing impact of a key European customer moving from Free on Board
to Landed arrangements
o The earlier timing of Chinese New Year in 2019, which has
pulled forward approximately GBP1.9m of revenue from H2 FY19 into
H1 FY19
-- Allowing for the above one-off factors, the underlying growth
in revenues from H1 FY18 to H1 FY19 was 20.8%
-- International business continues to grow and accounted for
40% of the Group's revenue in H1 FY19 (H1 FY18: 20%)
-- The Group maintains comfortable levels of funding headroom,
with headroom at 31 January 2019 of GBP10.5m (31 July 2018:
GBP9.1m; 31 January 2018: GBP8.0m)
Current trading and outlook
The positive momentum that the Group referenced in its Trading
Update of 7 January 2019 has continued, with stronger than expected
revenue growth across each of its four strategic pillars (i.e.
discounters, UK supermarkets, online platforms and international
customers).
As a result, and notwithstanding the higher overhead costs
associated with servicing the increased revenue and the investment
in the growth of the international business, the Group now
anticipates that its EBITDA performance in FY19 will be above the
market's current expectations.
The Group continues to assess the implications of a 'no-deal'
Brexit and the potential impact on volumes and margins if it led to
a material devaluation in Sterling. However, in the longer term,
the Board is confident in the adaptability and resilience of the
Group's business model, as evidenced by the strong recovery in
trading in H1 FY19 despite a challenging consumer and retail
market.
Notice of Results
The Group intends to announce its interim financial results on
29 April 2019.
For more information, please contact:
Ultimate Products +44 (0) 161 627 1400
Simon Showman, CEO
Andrew Gossage, Managing Director
Graham Screawn, Finance Director
Shore Capital +44 (0) 20 7408 4090
Mark Percy
Edward Mansfield
Powerscourt +44 (0) 207 250 1446
Rob Greening
Sam Austrums
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014.
Notes to Editors
Ultimate Products is an owner, manager, designer and developer
of a series of well-known brands focused on the home, selling to
over 300 retailers across 36 countries. It has six product
categories: Audio; Heating and Cooling; Housewares; Laundry;
Luggage; and Small Domestic Appliances. Its brands include Beldray
(laundry, floor care, heating and cooling), Intempo (audio), Salter
(kitchenware), Constellation (luggage), and Progress (cookware and
bakeware).
The Group's products are sold to a broad cross-section of both
large national and international multi-channel retailers as well as
smaller national retail chains, incorporating discount retailers,
supermarkets, general retailers and online retailers.
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 a recently established showroom in Cologne,
Germany. In total, Ultimate Products now employs over 250 staff.
For further information, please visit www.upgs.com
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END
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