Beldray re-brand – Ultimate Products has “got this!”

Ultimate Products hosted a Capital Markets presentation at the Exclusively Housewares Exhibition in London on Tuesday this week, where the company showcased its re-brand for Beldray®, having engaged in a similar process for Salter at the same event in 2023. Regarding trading, despite some sales and profit disruption so far in FY2024, we continue to expect above trend organic growth in FY2025. We retain our 200p fair value for the shares.

UP’s Brand Director Tracy Carroll presented key features of the Beldray (est 1872) re-brand. The overarching message was one of “collaboration” between UP and the product user with the simple tagline – “between us we’ve got this.” The company not only looks to have beautiful, affordable products for every home but also to inject humour into the experience of household chores such as laundry and cleaning. The Beldray – be beldray® - re-brand appears well positioned to achieve this.

As a company which owns increasingly powerful consumer brands, UP’s valuation relative to peers continues to look attractive. The company’s yield is above its peers and the prospect of ongoing share buybacks should also be supportive, in our view. We retain our view that fair value for the shares is 200p and base this on 1.2x EV/sales,10.2 EV/EBITDA and a 16.4x P/E. Moreover, the dividend yield at 3.1% would be superior to peers even with a 200p share price.