Ultimate Products plc (ULTP) develops new, innovative concepts and brings professional, sought-after products to the mass market. Their offices span two continents, with headquarters in the UK, a sourcing office and showroom in China and a further showroom in Continental Europe. Key owned brands include Salter, Beldray, Progress, Kleeneze, Petra and Intempo. The company also markets non-electrical Russell Hobbs products under licence, now on a rolling four-year basis.

15 Aug 2022

UPGS - record sales and profits in FY2022

A 13% increase in net sales revenue to a record £154.2m, a 41% increase in EBITDA to £18.8m (also a record) and an underlying 1.3x net debt/EBITDA ratio were notable features of a pre-close trading update released by UPGS today. Moreover, FY2023 appears to have started well. With strong momentum in both reported sales and profits, as well as significant tangible progress within group operations, we maintain our fair value assessment of 250p per share.

The current share price fails to reflect three salient growth drivers of the business, in our view. These include UPGS’s ability both to manage and acquire key brands, the development of more supermarket and online business and its international opportunity. The company’s proven ability to cope with external headwinds should also be noted. We base our 250p fair value on an FY2023 EV/sales ratio of 1.5x and 12x EV/EBITDA.

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