Innovating for growth

UPGS hosted a capital markets presentation at the Exclusively Homewares exhibition in London’s Business Design Centre yesterday to discuss the upcoming re-brand of Salter as part of its overall brand rejuvenation programme. Having confirmed its expectations for FY2023 financial performance in a statement the previous week, prospects for a strong second half to the year remain in place. 

UPGS’s belief that it will match market expectations in FY2023 is important. With an end-July year-end the company has significant visibility regarding the FY2023 H2 trading period. A £163m full year revenue figure would require double-digit growth in the second half, which would be impressive and something that the business is clearly confident of achieving.

Accelerated sales momentum in FY2023 H2, prospects of major benefits from a holistic approach to brand management and sustained commitment to serving the mass market with affordable “feel good” products for every home reinforce our view that fair value for UPGS’s shares is 250p.   We base this view on 1.5x EV/sales and 12.2x EV/EBITDA.