UP's year end net debt expected to be c. £15m, significantly better than market expectations

Pictured are Ultimate Products Chief Executive Officer Simon Showman and Managing Director Andrew Gossage

Oldham-based Ultimate Products, the owner of a number of leading homeware brands including Salter (the UK's oldest houseware brand) and Beldray, has announced that it expects its financial year end net debt to be in the region of £15m, which is significantly ahead of current market expectations of around £21m.

As announced on June 7, 2023, current trading remains in line with market expectations, which, due to the improved net debt position, is expected to result in a substantially improved net bank debt/adjusted EBITDA ratio of 0.7x as at July 31, 2023.

The improved net debt performance is due to ongoing improvements in working capital management and the phasing of trading during the second half of the year.

Given that current interest rates are causing finance costs to increase, the Group is pleased that the lower net debt helps to mitigate these rises.

In addition, the Group continues to hold a suite of hedging instruments composed of a number of interest rate caps and swaps, which have greatly reduced the effect that rising interest rates have had on its income statement.

Lower net debt and hedged interest rates will continue to result in financing charges at Ultimate Products being in line with current market expectations of £1.2m for the current year, and £0.9m for 2024.

Ultimate Products sells to over 300 retailers across 38 countries, and specialises in five product categories: Small Domestic Appliances; Housewares; Laundry; Audio; and Heating and Cooling.

Other brands include Progress (cookware and bakeware), Kleeneze (laundry and floorcare), Petra (small domestic appliances) and Intempo (audio).

Founded in 1997, Ultimate Products employs over 370 staff.

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