Ultimate Products PLC shares slumped on Wednesday as it warned that it expects full-year adjusted earnings before interest, tax, depreciation and amortisation below consensus, with sales weighted toward lower margin product categories.
Shares in Ultimate Products dived 28% to 53.30 pence in London on Wednesday.
The Manchester, England-based owner of homeware brands including Salter and Beldray said it expects an adjusted Ebitda for the year to the end of July of £12.5 million, against a consensus of £14.3 million.
It would also be below the £18.0 million it achieved in financial 2024.
The company said revenue in the four months to May rose 3% on-year, but sales were weighted toward lower margin product categories and sales channels, giving a gross margin similar to the first half.
Adjusted Ebitda for the four-month period was therefore flat at £3.6 million, despite a fall in freight rates.
Ultimate Products said it has also been impacted by a lower rate of order intake from its retail customers, with over £4 million of customer orders deferred from the fourth quarter of financial 2025 to the start of the next financial year.
As a result, the company said it expects revenue in the second half to be broadly flat compared to a year ago, with revenue for the full financial year down 4% from last year.
Looking ahead to the next financial year, Ultimate Products said the order books suggests it will be a ‘slow start to the year,’ as it is down 7.5% from a year prior.
It expects financial 2026 revenue to be lower again than financial 2025, at a level broadly in line with the current order book position.
The company said it is focused on a ‘number of initiatives’ which it believes have the potential to deliver a ‘significant improvement’ in its financial performance.
‘This remains a hugely challenging trading environment given the wider macroeconomic uncertainty and weak consumer sentiment, and unfortunately our current performance reflects that,’ said Chief Executive Andrew Gossage.
‘However, there are also a number of investments which we are making within our sales function to enhance its systems and processes and thus improve future performance. This is a clear priority for us, with a range of initiatives already underway. Ultimate Products has demonstrated time and time again its resilience in the toughest of circumstances, and despite the near-term uncertainty we remain as confident as ever in our long-term prospects.’
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