Research on Ultimate Products PLC (ULTP:LON) from Equity Development
Ultimate Products' trading matched both market and our own expectations in FY2026. Sales revenue was £144.9m and adjusted EBITDA £10.0m, while year-end net debt was £8.6m, down from £14.1m a year earlier. Looking ahead, the company expects the FY2027 outlook to be broadly flat. Sales growth for the company’s owned brands accelerated in the second half of FY2026, generating a 5.3% overall increase for the full year. Branded sales, including Salter and Beldray, grew in both halves. The faster growth of UP’s proprietary brands lends support to the Salter and Beldray re-brands and the company’s increased focus on its owned brand portfolio. Over the past two years, the portion of business generated by owned brands has increased from 75% to 89%. Trading conditions for general merchandise remain tough, with the company reiterating that conditions are “soft” domestically and in Europe. We reduce our FY2027 forecasts accordingly, but continue to view UP’s focus on brands as positive for future growth and shareholder value creation. We maintain our 165p/share fair value estimate.
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