Research on Ultimate Products PLC (ULTP:LON) from Equity Development
Ultimate Products has reported FY26 H1 results alongside upgraded FY26 sales guidance, with management now expecting group sales to be marginally ahead of expectations - supporting a stronger-than-expected H2 outcome. Our FY26 sales forecast is increased to £141m (from £138m); H1 overall sales were -6%, with £5m EBITDA and £9.7m net debt reiterated from the February update. Strategically, the mix is improving: owned brands (88% of revenue) grew +5% (branded incl. licensed +2%), led by Beldray +14% and George Wilkinson +22%, while third‑party clearance/white label fell -69% - consistent with the “Home of Brands” repositioning and the restructured commercial/sales set-up. In our view, the valuation looks disconnected from progress, and the shares remain strikingly low for a business increasingly shaped around stronger, more pertinent brands. We maintain our 165p/share fair value estimate (1.1x FY27 sales).