Ultimate Products has announced its trading update for the six months ended 31 January 2023.
Unaudited group revenues increased by 2% to £87.6m. The company said that online channels were the main driver of the growth, supported by the continued normalisation of supply chains. Consumer demand for energy efficient and money saving products also remained buoyant across all channels.
UPGS reported that the level of retailer overstocking experienced in 2022, which, along with challenging macroeconomic environment, cause retailers to be cautious in ordering, is now reducing in the UK and more normal ordering patterns have recommenced.
At the end of the six month period, the group had a net bank debt/ underlying EBITDA ration of 1.0x, compared to 1.3x in July 2022.
The board anticipates a full year performance in line with current market expectations.
Simon Showman, chief executive of Ultimate Products, commented: “Amidst a tough economic climate, we are delighted that our products, especially those that are energy efficient and money saving, continue to resonate strongly with customers. Global supply chain disruption has now eased, which has improved stock availability and supported the growing demand from our online customers.
“Looking ahead, we expect that the current softness in global shipping pricing, as well as the partial recovery in sterling, will provide additional relief against the ongoing inflationary backdrop.
“We are increasingly excited by the positive impact that our robotics process automation programme is having on our business. Our bottom-up, demand-led approach to automation enables us to concentrate efforts on the items that can most improve productivity, and this will ultimately enhance operating margins and drive an even better customer experience.”
