Ultimate Products faces a tough financial year with declining profits and revenues.
- The Oldham-based homeware company reports a 6.5% drop in total revenues.
- International sales show resilience with a 7% increase, bolstered by European markets.
- A strategic leadership overhaul aims to navigate ongoing market difficulties.
- Despite market struggles, the company maintains a steady dividend, signaling cautious optimism.
The financial year ending July 31, 2024, has been difficult for Ultimate Products, a renowned homeware brand based in Oldham. The company reported a significant decrease in profits and revenue, reflecting broader economic challenges in the UK market. Total revenues fell by 6.5% to £155.5 million, partly due to reduced orders from supermarkets as they contend with overstocking and declining demand for general merchandise.
Despite these domestic challenges, Ultimate Products witnessed a 7% rise in international sales, reaching £54.3 million. This growth was primarily propelled by an increase in sales to European discount retailers. The strategic expansion into Europe was marked by the opening of a new showroom in Paris, which significantly contributed to a 78% increase in sales to France, totaling £12 million.
In response to these challenges, Ultimate Products has made several strategic leadership changes. Andrew Gossage was appointed as CEO, filling the shoes of the company’s founder, Simon Showman, who continues to serve on the board as Chief Commercial Officer. The company also appointed Christine Adshead as a non-executive chair, along with new non-executive directors Andrew Milne and José Carlos González-Hurtado. These changes are part of a broader effort to enhance operational efficiency and strengthen governance.
Acknowledging the prevailing weak consumer sentiment in the UK, CEO Andrew Gossage emphasized the company’s commitment to international growth as a key component of their strategy. “This continues to be a challenging period for many consumer-facing businesses in the UK, and we are by no means immune from the overall slowdown,” Gossage stated. However, he expressed optimism regarding their international performance, attributing the success to their compelling value proposition and efficient operations.
Despite the hurdles in the domestic market, the company has managed to maintain its full-year dividend at 7.38 pence per share. This gesture reflects a cautious yet hopeful outlook for the future. The company prides itself on offering trusted brands like Salter and Beldray, which continue to attract consumers with their quality and value.
Ultimate Products remains resilient, leveraging international growth to counter domestic challenges.
