Ultimate Products (AIM:ULTP), owner of the Salter and Beldray homeware brands, said trading for the year ended 31 July came in line with expectations despite a 3.5% fall in unaudited group revenue to £144.9m, from £150.1m in the prior year.
Sales for proprietary brands rose 5.3% to £128.4m, reflecting the continued push to build brand equity, while the overall decline was driven by softer general merchandise demand and a planned reduction in third-party clearance sales.
Unaudited adjusted EBITDA came in at £10m, with gross margin slipping to 22.6% from 23.2% as sales mix shifted; operating costs rose to £22.8m from £22.3m, including £760,000 of restructuring costs tied to the transformation of the commercial function.
Net bank debt fell to £8.6m from £14.1m, taking leverage to 0.9 times adjusted EBITDA, marginally below the Group's 1.0 times target policy.
Second-half revenue was broadly flat, down 0.3% year-on-year, an improvement on the 5.8% decline reported in the first half.
"Although the broader trading environment remains challenging, we believe the changes we are making will support our ambition to grow both market share and brand equity", said Chris Dent, Chief Financial Officer.
It expects subdued consumer demand and geopolitical uncertainty to persist, and currently anticipates FY27 trading to be similar to FY26.
News Intelligence what this means for the company
Ultimate Products reported FY26 revenue of £144.9m, down 3.5% year-on-year, but in line with guidance—proprietary brands (Salter, Beldray) grew 5.3% to £128.4m, offsetting planned cuts to lower-margin clearance sales. The company reduced net debt to £8.6m and leverage to 0.9x EBITDA (below its 1.0x target), but gross margin compressed 60 basis points as mix shifted, and management expects FY27 to track FY26 amid persistent consumer weakness. The group has begun a regional TV trial for Beldray, a brand-building bet that could unlock growth if it converts to sustained retail traction.
The core narrative—proprietary brand growth offsetting clearance decline—is intact and debt is healthier, but the margin squeeze and flat second-half momentum signal that brand-building gains have not yet overcome subdued demand. Management's FY27 guidance (similar to FY26) implies no near-term acceleration; the investment case now hinges on whether the Beldray TV campaign and commercial restructuring drive material market share or brand equity gains in a still-weak consumer environment.
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