Ultimate Products (LON:ULTP) Releases Earnings Results

Ultimate Products (LON:ULTP) posted its quarterly earnings data on Tuesday. The company reported GBX 4.30 earnings per share for the quarter, Digital Look Earnings reports. Ultimate Products had a net margin of 2.69% and a return on equity of 8.41%. The company had revenue of £144.91 million during the quarter.

Here are the key takeaways from Ultimate Products’ conference call:

• FY2026 revenue fell 3% to £145 million and adjusted EBITDA declined 20% to just over £10 million, while adjusted profit before tax dropped 28% to £6.3 million. The decline reflected the exit from the high-margin clearance business, weaker U.K. branded sales and adverse sales mix.
• Management has shifted commercial focus toward proprietary brands, closing the clearance division and reorganizing the sales function at a one-off cost of £800,000. A new commercial “triangle” integrating brands, buying and sales, along with a newly launched CRM, is intended to improve execution and sell-through.
• Branded sales increased 2% overall, led by a 64% rise in sales to European discounters and continued growth in the Salter and Beldray direct-to-consumer websites. Management believes there is substantial additional runway in Europe and significant potential to scale its own brands and websites.
• Productivity initiatives, including robotic process automation and AI, have reduced headcount and operating costs while creating capacity to support materially higher sales without comparable workforce growth. Net debt declined during the year, with year-end leverage at 0.9 times adjusted EBITDA and working-capital cover at 2.9 times.
• Management expects FY2027 trading to be relatively flat amid subdued consumer demand and geopolitical uncertainty. The immediate priority is stabilizing and then restoring growth in the U.K. branded business, which declined 7% in FY2026, before pursuing broader international expansion.

Ultimate Products Price Performance

ULTP opened at GBX 49.80 on Wednesday. Ultimate Products has a fifty-two week low of GBX 40.30 and a fifty-two week high of GBX 65. The firm has a market capitalization of £41.55 million, a PE ratio of 11.07 and a beta of 0.60. The company’s 50-day moving average is GBX 49.10 and its 200 day moving average is GBX 49.36.

Insider Transactions at Ultimate Products

In other news, insider Chris Dent sold 4,875 shares of the firm’s stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of GBX 54, for a total value of £2,632.50. Company insiders own 43.17% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages have commented on ULTP. Canaccord Genuity Group reaffirmed a “buy” rating and set a GBX 75 price target on shares of Ultimate Products in a research report on Tuesday. Shore Capital Group reissued a “house stock” rating on shares of Ultimate Products in a research report on Wednesday, August 19th. One investment analyst has rated the stock with a Buy rating. According to data from MarketBeat, the stock has a consensus rating of “Buy” and a consensus target price of GBX 75.

Ultimate Products Company Profile

Ultimate Products is the owner of leading homeware brands including Salter and Beldray. According to its market research, nearly 80% of UK households own at least one of the Group’s products.

The Group sells to over 300 retailers in over 30 countries – spanning discounters, supermarkets and general retailers, and ranging from large national and international multi-channel retailers to smaller retail chains. Its products are also available on salter.com and beldray.com, as well as major third-party online marketplaces.