TIDMUPGS
RNS Number : 1473Y
UP Global Sourcing Holdings PLC
07 September 2020
7 September 2020
UP Global Sourcing Holdings plc
"Ultimate Products" or "the Group"
PRE-CLOSE TRADING UPDATE AND NOTICE OF RESULTS
Ultimate Products, the owner, manager, designer and developer of
an extensive range of value-focused consumer goods brands,
announces its trading update for the financial year ended 31 July
2020 ("FY20").
Overview
-- Unaudited Group revenues down 6.1% to GBP115.7m (FY19:
GBP123.3m), reflecting order cancellations and deferrals due to the
COVID-19 pandemic - albeit offset by strong growth in sales to
supermarkets and online channels
-- UK and international online revenue up 47.2% to GBP16.7m
(FY19: GBP11.4m) accounting for 14.5% of total Group revenue (FY19:
9.2%)
-- The Group's top two customers accounted for 26.0% of the Group's revenue (FY19: 34.8%)
-- Unaudited underlying EBITDA* excluding the credit from the
COVID-19 Job Retention Scheme ("the furlough credit") down 3.3% to
GBP10.4m (FY19: GBP10.7m), and unaudited underlying PBT* excluding
the furlough credit down 2.7% to GBP8.2m (FY19: GBP8.4m)
-- Net bank debt down 73.7% to GBP3.8m (FY19: GBP14.4m) with a
net bank debt/underlying EBITDA ratio at 31 July 2020 of 0.4x
(FY19: 1.3x). Improvement in net bank debt driven by the Group's
profitable and cash generative performance, strong management of
working capital, accelerated stock turn, and the temporary
suspension of the interim dividend
-- The Group maintains comfortable levels of headroom within its
bank facilities, with headroom at 31 July 2020 of GBP21.3m (31 July
2019: GBP10.1m). The Group continues to operate well within its
banking covenants
-- The Group is reinstating the suspended interim dividend, with
1.16p per share (FY19: 1.16p) payable on 9 October 2020 to
shareholders on the register on 18 September 2020 and is
recommencing the previously stated dividend policy of distributing
50% of the Group's adjusted profit after tax
Current trading and outlook
-- The FY21 order book is ahead of this time last year
-- As announced on 24 August 2020, the Group has decided to
repay the GBP465,237 that it has received under the Coronavirus Job
Retention Scheme ("furlough scheme") and does not intend to make
any further claims under the furlough scheme or for the associated
Job Retention Bonus. In addition, the Group is no longer utilising
the Government Time to Pay and VAT deferral schemes. All VAT and
PAYE payments are up to date as at 31 July 2020. These payments are
possible because the Group's profitability and cash generation have
been stronger than expected during this crisis.
-- In light of the resilience, adaptability and versatility that
the Group has shown during FY20, the Board remains confident in the
long-term prospects for Ultimate Products despite the continuing
short-term uncertainty
Commenting on the performance, Simon Showman, Chief Executive of
Ultimate Products, said:
"Given the significant challenges that COVID-19 initially caused
for our business, I am delighted with the resilience of the
performance that we have delivered in FY20. It is a clear testament
to the strength and flexibility of our business model, as well as
the ability of our people to improvise, adapt and overcome when
faced with any challenge. It has been humbling to see the way that
our teams have worked tirelessly to ensure that it has remained
business as normal for Ultimate Products, despite a trading
environment that has been anything but normal.
The consumer response to our brands has continued to strengthen,
particularly via supermarket, online and international channels.
Despite the challenges of COVID-19, we have continued to provide a
high quality service to our customers and to develop our product
range.
Notwithstanding the ongoing economic uncertainty, we remain
confident in the long-term prospects for Ultimate Products."
Notice of results
The Group intends to announce its full year financial results on
3 November 2020.
* Underlying EBITDA and underlying PBT are non-GAAP measures.
Both underlying EBITDA and underlying PBT exclude the credit from
the COVID-19 Job Retention Scheme and are calculated after adding
back share-based payment charges.
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
Sarah Mather
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 38 countries. It has six major 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), Kleeneze (laundry), 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
( https://www.youtube.com/watch?v=IJoGXb04CbU ). In addition, the
Group has an office and showroom in Guangzhou, China and in
Cologne, Germany.
Ultimate Products' graduate development scheme was launched in
2012 and there are now over 100 employees who have been through the
scheme. In total, Ultimate Products employs over 250 staff.
Please note that Ultimate Products is not the owner of Russell
Hobbs or Salter. The company currently has licence agreements in
place granting it an exclusive licence to use the "Russell Hobbs"
trademark for cookware (NB this does not include Russell Hobbs
electrical appliances) and the "Salter" trademark for electrical
and cookware (NB this does not include Salter scales).
For further information, please visit www.upgs.com
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END
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