Ultimate Products Q3 revenue flat, group sales set to beat expectations

(Sharecast News) - Ultimate Products said on Thursday that third-quarter revenue was flat year-on-year as growth in its own brands offset subdued consumer demand and a planned reduction in non-core third-party clearance sales. The AIM-traded owner of brands including Salter and Beldray said unaudited group revenue was £34.8m in the three months ended 30 April, unchanged from the same period a year earlier.

Sales of proprietary brands rose 9% to £31.5m, while overall branded sales increased 3%, reflecting the group's continued focus on growing its own-brand portfolio.

Ultimate Products said trading remained affected by subdued demand for general merchandise, particularly in the UK, as well as an unpredictable geopolitical backdrop.

The board said it expected the flat trading trends seen in the third quarter to continue through the rest of the year.

As a result, group sales were now expected to be marginally ahead of market expectations, while it was expected to remain in line with consensus, reflecting the change in sales mix.

The company said ongoing investment in operational capabilities, alongside the forthcoming arrival of Simon Harrison as chief executive, would help it maximise future growth opportunities.

Outgoing chief executive Andrew Gossage said overall revenues had been stable in the quarter, which was slightly ahead of expectations.

"Our focus continues to be on our self-help strategy to optimise the business for future growth," he said.

Gossage said the group's refreshed commercial function was well placed to grow market share, while continued focus on operational productivity would support future performance.

At 1252 BST, shares in Ultimate Products were up 1.96% at 52p.

Reporting by Josh White for Sharecast.com

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