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UP Global Sourcing Holdings PLC on Wednesday said it expects its annual performance to be in line with current market expectations.
UP Global Sourcing is a Manchester-based owner of homeware brands, including Salter and Beldray. UP stands for Ultimate Products. Its shares were down 3.6% to 135.00 pence each in London on Wednesday morning.
In the six months ended January 31, revenue rose by 2.2% to £87.6 million from £85.7 million. UP Global noted that this was achieved with no overall price inflation, keeping its products at prices which are ‘affordable to all consumers’.
In the period, online revenue surged 78% to £22.9 million from £12.8 million. Meanwhile, sales to retailers fell by 11% to £64.7 million from £72.9 million.
Adjusted earnings before interest, tax, depreciation and amortisation were flat at £11.2 million year-on-year.
However, pretax profit fell by 5.3% to £9.4 million from £9.9 million. UP Global explained that its depreciation and amortisation charge rose 19% to £1.1 million from £1.0 million, due to an investment in solar panels at its Manor Mill head office during the summer of 2022. Further, as a result of higher interest rates, finance expenses rose £711,00 from £361,000.
The company also said it has declared an interim dividend of 2.43 pence per share, up from 2.30 pence a year ago.
Looking ahead, UP Global expects full-year results for financial 2023 to be in line with current market expectations. Market expectations stand at £165.3 million for revenue and adjusted Ebitda of £20.1 million. In financial 2022, the company reported revenue of £154.2 million and adjusted Ebitda of £18.8 million.
It added that the company is well-placed to respond to the challenges of the current cost of living crisis.
Chief Executive Officer Simon Showman said: ‘The business has been tested by some of the toughest trading conditions and headwinds seen in recent times, but we are emerging stronger, more focused and more profitable than ever. This resilience puts us in a strong position to accelerate our growth as the macroeconomic uncertainty starts to clear. We therefore remain confident in the future prospects for Ultimate Products.’
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