Household goods firm eyes flotation

Ultimate Products at Manor Mill, Chadderton. PIC shows L-R: Sadie Cunliffe (graduate), Craig Holden (HR Director) and Lucy Hurst (graduate)..

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HOUSEHOLD goods firm Ultimate Products could be floated on the stock market next year.

The business, based at Manor Mill in Chadderton, develops, sources and supplies well-known cookery, dining, electrical, luggage, bed linen and other homewear products to retailers across 27 countries.

It is forecasting sales of more than £100 million next year and says the time could be right for an initial public offering (IPO), which could value the firm at around £100 million.

The Oldham company, which owns the Beldray brand and holds the licence to sell some Salter and Russell Hobbs products in the UK, had held back from a stock market launch until the EU referendum had taken place.

But the firm's managing director, Andy Gossage, said this week: "We could push the button in the first half of next year. I think the public markets could be a good place for us.

"The current IPO market conditions don't put us off.

"There's still a lot of money out there looking for growing companies to invest in."

Other firms such as Pure Gym and TI Fluid Systems have halted flotation plans recently, and waste management firm Biffa cut the price of its share sale.

However, Ultimate Products, which is working with Shore Capital, has seen sales and profits soar over the past 12 months, prompting the company to press ahead with the IPO.

Revenue has risen 23 per cent to £79 million while profit before tax is up 50 per cent to £7.5 million.

In Oldham, Ultimate Products has staff working in roles including sales, administration, logistics and warehousing, imports, product design and marketing at Manor Mill and is currently renovating Heron Mill in Hollins for extra warehousing.

It is on a recruitment push to take on more graduates from a variety of backgrounds. It also has two offices in the Far East.

Mr Gossage shrugged-off Brexit uncertainty and put the firm's growth down to product innovation, the increased popularity of its brands and the relationship with its retail chains such as B&M, Sainsbury's and Amazon.

He said: "Despite the outcome of the EU referendum, our 2017 order book is already up over 60 per cent as the company benefits from the expansion plans of the discounters, our deepening relationships with major supermarkets and the growing popularity of online shopping.

"Brexit will be challenging for the UK economy, but we're just getting our heads down and getting on with it."

Ultimate Products was founded in 1997 by Simon Showman and Barry Franks.

It was previously backed by private equity firm LDC, which held a 46 per cent stake.

However, a management buyout in 2014 left Mr Showman as the largest shareholder.

* See the latest edition of Oldham Business Edge magazine, published quarterly by the Oldham Evening Chronicle, for an in-depth feature on Ultimate Products in Oldham and its graduate trainee scheme.