Amidst a challenging year, Ultimate Products faced a significant drop in financial performance.
- Revenues fell by 6.5% to £155.5m, impacted by several market factors.
- International sales rose due to increased demand from European discounters.
- Key leadership changes aim to steer the company through turbulent times.
- Despite domestic hurdles, the company sees potential in European markets.
In the financial year ending on 31 July 2024, Ultimate Products encountered a decline in revenue and profits, described by the CEO as a ‘challenging period.’ Revenue saw a drop of 6.5% to £155.5 million. This decline was attributed to reduced supermarket orders caused by overstocking, diminishing consumer demand for general merchandise, and prior year’s strong results.
While domestic sales faced difficulties, international markets provided a silver lining with a 7% increase in sales, reaching £54.3 million. This growth was largely driven by European discounters, indicating a strong demand abroad.
The company’s statutory profit before tax fell by 10% to £14.3 million. Despite this downturn, the full-year dividend per share was maintained at 7.38p, reflecting a commitment to shareholder returns.
Amid these challenges, Ultimate Products inaugurated a new European showroom in Paris, leading to a substantial 78% increase in sales in France, amounting to £12 million.
Leadership transitions were also significant in this period. Andrew Gossage took over as CEO, with the founder Simon Showman shifting to the role of Chief Commercial Officer. Christine Adshead was appointed as non-executive chair, with Andrew Milne and José Carlos González-Hurtado joining as non-executive directors. Milne now chairs the remuneration committee, while González-Hurtado leads the ESG committee.
Weak consumer sentiment in the UK continues to hamper short-term sales. However, international momentum is growing, driven by strong performance in European markets. CEO Gossage commented on the period as ‘challenging for many consumer-facing businesses in the UK,’ but expressed optimism about the international growth strategy which includes initiatives like the Paris showroom.
Despite the current economic headwinds, Ultimate Products remains focused on their core strategy, offering ‘trusted brands, beautiful products, attractive price points, and outstanding operational capabilities.’ Gossage remains ‘cautiously optimistic’ about the upcoming financial year.
Ultimate Products is navigating market challenges with a focus on international growth and strategic leadership changes.
