Ultimate Products - AUDITED RESULTS FOR THE YEAR ENDED 31 JULY 2025

28 October 2025

 

Ultimate Products plc

("Ultimate Products", the "Company" or the "Group")

 

AUDITED RESULTS FOR THE YEAR ENDED 31 JULY 2025

 

Ultimate Products, the owner of a number of leading homeware brands including Salter (the UK's oldest houseware brand, est.1760) and Beldray (est.1872), announces its audited results for the financial year ended 31 July 2025 ("FY25", or the "Year"), which are in line with market expectations.

 

Financial highlights

·     Total revenue down 3%, or £5.4m, to £150.1m (FY24: £155.5m), reflecting:

o  Anticipated reduction in air-fryer sales of £4.8m, down 32%

o  Reduction in third-party close-out sales of £8.8m, down 60%

o  Increase in all remaining other sales of £8.2m, up 6%

·     Gross profit down 14% to £34.8m (FY24: £40.5m), with gross margin at 23.2% (FY24: 26.0%), impacted by £3.1m of additional shipping costs and a change in sales mix

·      Adjusted EBITDA* down 31% to £12.5m (FY24: £18.0m)

·      Adjusted profit before tax* down 40% to £8.7m (FY24: £14.4m)

·      Statutory profit before tax down 44% to £8.0m (FY24: £14.3m)

·      Statutory EPS down 44% to 6.8p (FY24: 12.2p), with Adjusted EPS* down 40% to 7.4p (FY24: 12.3p)

·      Full year dividend per share of 3.70p (FY24: 7.38p) in line with capital allocation policy of returning around 50% of post-tax profits to shareholders through dividends

·      Continued strong cash generation from operating activities of £10.3m (FY24: £18.5m), representing an 82% operating cash conversion (FY24: 103%)

·      Net bank debt/adjusted EBITDA* ratio of 1.1x (FY24: 0.6x), marginally above the Group's targeted policy of 1.0x

 

Operational highlights

·    Continued focus on strengthening the equity of our brands, which account for 80% of sales and delivered 4% growth in the year

o  This includes the brand transformation of Beldray (sales up 11%), with its successful consumer launch having taken place in March 2025

o  Sustained momentum in product development, exemplified by the Beldray All-in-One Floor Cleaner, recently named a Which? Best Buy, and by the successful launch of new Salter products including the Slushie Maker, Crisp&Go and VertiCook

·    Ongoing progress in driving Group productivity with a focus on continuous improvement - highlighted by the implementation of new Product Information Management ("PIM") software during the period, which has already accelerated training times, reduced error rates and improved the quality of product information

·    Appointment of Andrew Milne and José Carlos González-Hurtado as Non-Executive Directors, bringing a track record of success and valued insights into both the UK and European consumer goods landscapes

·    Post period end, five senior management promotions to key functions at the highest levels of the business, strengthening the Operating Board and C-Suite across commercial activities, supply chain, operations, products and marketing

·    Operational improvements and investments underway to enhance the Group sales function

 

Current trading and outlook

Current trading remains in line with market expectations. While external headwinds are likely to persist in the short term, the Board is confident that the operational improvements underway will leave the business better positioned over the medium and long term, helping it to capitalise on growth opportunities in the UK and internationally as trading conditions improve.

 

Consideration of AIM listing

As noted in the Group's announcement on 13 August, the Board has reviewed whether it would be in shareholders' best interests to change the Company's listing venue from the London Stock Exchange's Main Market to AIM. The Board has concluded that at the Company's current market capitalisation, the AIM market would be the most suitable listing venue for the Group. The Board will put this change of listing venue forward for shareholder approval at the AGM on 12 December 2025. Further updates will be announced in due course.

 

Commenting on the results, Andrew Gossage, Chief Executive of Ultimate Products, said:

"FY25 was a challenging year for consumer-facing businesses, with ongoing macroeconomic pressures, elevated shipping costs and weak consumer demand weighing on performance. This included an anticipated reduction in air-fryer and third-party close-out sales, which together accounted for a large portion of the decline in revenue. Notwithstanding the challenges faced, we are pleased that our UP brands continued to deliver growth, reflecting the effectiveness of our branded strategy and the commitment of our teams across the business.

 

"We also made meaningful progress in strengthening the foundations of the Group, including the implementation of a new Product Information Management system, the promotion of five senior leaders into C-suite roles and a programme of enhancements to our sales function that is already driving positive change. Combined with the growing appeal of our brands and the scale of opportunity we see in the UK and internationally, we remain as confident as ever in our medium-to-long term prospects."

 

*Adjusted measures are before share-based payment expenses and non-recurring items

**Financial summary, including consensus market expectations are set out below

 

	FY24 (Actual)	FY25 (Actual)	FY26 (Consensus)
Revenue	£155.5m	£150.1m	£137.7m
Adjusted EBITDA	£18.0m	£12.5m	£9.9m
Adjusted EPS	12.3p	7.4p	5.2p

 

For more information, please contact:

 

Ultimate Products +44 (0) 161 627 1400

Andrew Gossage, CEO

Chris Dent, CFO

 

Shore Capital +44 (0) 20 7408 4090

Malachy McEntyre / Isobel Jones (Corporate Broking)

Mark Percy / David Coaten/ Harry Davies-Ball (Corporate Advisory)

 

Cavendish Capital Markets Limited + 44 (0)20 7220 0500

Matt Goode / Callum Davidson / Trisyia Jamaludin (Corporate Finance)

Matt Lewis (Corporate Broking)

 

Sodali & Co +44 (0) 207 250 1446

Rob Greening / Sam Austrums / Oliver Banks

 

Notes to Editors

Ultimate Products is the owner of a number of leading homeware brands including Salter (the UK's oldest houseware brand, established in 1760) and Beldray (a laundry, floor care, heating and cooling brand that was established in 1872). According to its market research, nearly 80% of UK households own at least one of the Group's products.

 

Ultimate Products sells to over 300 retailers in over 30 countries - spanning discounters, supermarkets and general retailers, and ranging from large national and international multi-channel retailers to smaller retail chains. Its products are also available on Salter.com and Beldray.com, as well as major third-party online marketplaces. The Group specialises in five product categories: Small Domestic Appliances; Housewares; Laundry; Audio; and Heating and Cooling. Other brands include Progress (cookware and bakeware), Kleeneze (laundry and floorcare), Petra (small domestic appliances) and Intempo (audio).

 

Founded in 1997, Ultimate Products is headquartered in Oldham, Greater Manchester, where it has design, sales, marketing, buying, quality assurance, support functions and warehouse facilities across two sites. Manor Mill, the Group's head office, includes a spectacular 20,000 sq ft showroom that showcases each of its brands. In addition, the Group has an office and showroom in Guangzhou, China and Paris, France. Ultimate Products employs over 300 staff and is certified as a Great Place to Work®. A significant number of its employees joined via the Group's Graduate Development Scheme, one of the biggest in the North West.

 

Please note that Ultimate Products is not the owner of Russell Hobbs. The company currently has licence agreements in place granting it an exclusive licence to use the "Russell Hobbs" trademark for cookware and laundry (NB this does not include Russell Hobbs electrical appliances).

 

For further information, please visit www.upplc.com.  

 

 

 

 

 

BUSINESS REVIEW

 

Purpose & Strategy

 

In a challenging trading environment, businesses can lose sight of their core strategy. However, despite tough operating conditions, we have remained focused on the strategic development of the Group. Our purpose is clear: to provide beautiful and more sustainable products for every home. We are committed to developing and delivering outstanding branded products that appeal to households across our key markets. At the same time, we ensure these products are attractively priced - not only for consumers but also for our retail partners, who can achieve margins equivalent to those of 'own label' ranges.

 

Since our IPO in 2017, we have built the Group into a leading supplier of quality branded housewares, selling to many UK retailers. What initially attracts these retailers is the opportunity to sell attractively priced, branded products that consumers want, while maintaining their desired retail margin. However, it is Ultimate Products' continued focus on our highly advanced operational capabilities that turns retailers from customers into long-term strategic partners.

 

Sales (£000, FY17-25)

 

	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
	£000	£000	£000	£000	£000	£000	£000	£000	£000
UP brand Air fryers	-	-	-	1,545	1,699	5,747	25,671	14,962	10,178
Other UP brand sales	51,277	44,421	70,820	58,497	73,851	110,437	105,992	101,920	111,768
UP Brands	51,277	44,421	70,820	60,042	75,550	116,184	131,663	116,882	121,946
Licensed brands	24,535	20,762	30,252	37,575	45,219	20,165	16,458	12,059	14,376
3P close-out & own label	34,141	22,388	22,185	18,067	15,598	17,842	18,194	26,556	13,813
Total	109,953	87,571	123,257	115,684	136,367	154,191	166,315	155,497	150,135

 

Share of Sales (%, FY17-25)

 

	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
	%	%	%	%	%	%	%	%	%
UP brand Air fryers	0%	0%	0%	1%	1%	4%	15%	10%	7%
Other UP brand sales	47%	51%	57%	51%	54%	72%	64%	65%	74%
UP Brands	47%	51%	57%	52%	55%	75%	79%	75%	81%
Licensed brands	22%	24%	25%	32%	33%	13%	10%	8%	10%
3P close-out & own label	31%	26%	18%	16%	11%	12%	11%	17%	9%
Total	100%	100%	100%	100%	100%	100%	100%	100%	100%

 

Our brands have driven the growth of our business, enabling us to transition from a trading and sourcing business to a 'Home of Brands', with 80% of UK households now owning at least one of our products. Revenue from our UP Brands has more than doubled, rising from £51.3m in FY17 to £121.9m in FY25, and these brands now account for 81% of total sales. However, the tables above also show that this growth has stalled over the past three years.

 

The past few years have been exceptionally challenging for consumer-facing businesses, with a range of headwinds holding back sales. Overstocking during the COVID boom disrupted forward order books, the cost-of-living crisis dampened consumer confidence, and many opted to save rather than spend. There have, of course, been mitigating factors that have helped to offset these, such as the surge in air fryer sales during FY23 and the availability of third-party close-out parcels during FY24. However, over the past three years, sales of our core UP brands have edged up only marginally, from £110.4m to £111.8m. This modest increase underscores the difficulties of the past few years for consumer-facing businesses; we have been running hard just to stand still.

 

Indeed, in many areas we have been running twice as fast to deliver on our continuous improvement agenda. For instance, our approach to branding has been revolutionised by the appointment of Tracy Carroll as Brand Director. Externally, this is most visible in the rebranding of Salter and Beldray, underpinned by a fully refreshed brand strategy that puts the consumer first in every decision. Together, these two British heritage brands boast over 400 years of history and exceptional consumer recognition, now accounting for 60% of our sales. Internally, the focus has been on simplification: tighter brand guidelines, and the use of robotic automation and AI to increase productivity. This has enabled us to elevate the quality of our output, adopt a more brand-led approach to design, and prioritise building brand equity as a driver of sales volumes.

 

In addition, we have continued to invest in our systems, implementing Product Information Management ("PIM") software to store, enrich and manage complex product information. The PIM platform has already delivered tangible benefits across multiple functions, including increased productivity, accelerated training times, lower error rates and better-quality product information.

These productivity gains allow us more time for product development, which enables us to bring even better innovations to market. In the current year, we are particularly proud of three new Salter launches: the Slushie Maker, the Crisp&Go and the VertiCook, each of which shows our ability to respond quickly to demand and deliver products that resonate with consumers. UP's clearest product achievement, however, has been the Beldray All-in-One Floor Cleaner. It was recently named a Which? Best Buy ahead of products from Dyson and Shark and was described as "a top performer that effortlessly handles everything from muddy footprints to sticky jam". With a price point well below premium-brand competitors, it is truly a beautiful product for every home. The All-in-One Floor Cleaner is being rolled out in line with our 'test, repeat, maximise' model, where products are trialled in smaller volumes before being scaled up. The initial soft launch across Beldray.com and several leading online retailers was a sell-out success, and the next phase will begin in Spring 2026 to coincide with spring-clean promotional events.

 

We see this as just the beginning of what our enhanced systems can enable. Our talented teams are fully embracing our new technologies, and we expect AI to play an increasingly important role in driving further improvements. Looking ahead, our next major, multi-year project will be the replacement of our enterprise resource planning ("ERP") system. The current system is approaching end-of-life, limiting both efficiency and automation potential. Upgrading it will be a critical step in further enhancing our operational capabilities.

 

These enhancements have helped us drive meaningful productivity gains across the business. Our key productivity metric is gross profit per colleague. In the current year this has fallen, primarily due to increased shipping costs impacting gross margin. However, revenue per colleague has continued to rise.

 

	FY21	FY22	FY23	FY24	FY25
Sales Per Head (£)	429,049	430,897	452,078	467,490	484,665
Gross Margin Per Head (£)	94,937	104,862	112,856	117,667	109,106

 

The significant increase in productivity we've achieved will support enhanced profitability as sales grow. The operational leverage gained through our culture of continuous improvement means that any uplift in sales will have an amplified effect on profitability. This reflects the hard work undertaken to enhance operational efficiency across multiple business areas, including supply chain, operations, products and marketing.  While we remain mindful of the challenging market, we believe there is scope to accelerate our sales function and see clear opportunities to grow, both in the UK and internationally.

 

In the UK, our only area of particularly high market penetration is in scales. They are the core segment of our iconic Salter brand and, according to market research, are found in 70% of consumers' homes. In our other chosen market segments, we remain a challenger brand with significant potential and the capability to grow market share. In Europe, we have an opportunity to expand further. Although we are not a small player, with FY25 sales exceeding £50m, our market share in Europe remains significantly lower than in the UK. Given the relative size of the European market (population c.480m), the financial upside of further European growth is considerable.

 

The Group's focus is now on replicating the improvements made in branding and product development within its sales function. Several initiatives are already underway, which we believe have the potential to drive improved financial performance. We are not content with simply retaining market share in challenging trading conditions; we are focused on enhancing our operational capabilities to deliver growth. The changes we are making across sales fall into four different strands:

 

·      Human Capital

·      Training & Development

·      Use of Technology

·      Management process

 

The changes in relation to human capital are directly related to the way in which the business has changed over the years. We have moved from a sourcing model, focused solely on product and price, to a branded model. Under this approach, it is our brands, alongside product and price, that have become the key driver of sales. This shift has elevated our business to become the Home of Brands. To fully align with this model, our sales team must now harness a passion not only for selling on product & price, but also on brand.

 

Our sales colleagues have deep experience and have delivered strong results under our previous sourcing-led approach. As we continue our more brand-centric strategy, we recognise the need to support them with regular training to build on existing strengths and ensure everyone is equipped to sell in this new context. We are therefore rolling out a comprehensive training programme to refine capabilities and close any gaps. Our Buying teams are supporting this with a refreshed approach to product training, including interactive demonstrations, product launch days, competitor comparisons, user trials and consumer insights.

 

We continue to invest heavily in technology, as demonstrated by the introduction of the PIM platform and the work on our new ERP. The next phase in this technological investment is the development of a Customer Relationship Management system ("CRM"), an area that has historically limited progress within our sales function. We have identified CRM as a key enabler, and our new ERP system will include a standalone CRM module to improve productivity. In the interim, our process development team has created a temporary CRM solution to bridge the gap.

 

We have also made several senior management changes to invigorate our team, strengthen decision-making and support our long-term growth ambitions. Simon Showman, formerly Chief Commercial Officer, has assumed the role of President and Founder, where he will focus on product development and the growth of our strategically important European business. Additionally, we have promoted five leaders to C-suite roles across key functions: Duncan Singleton (Chief Commercial Officer), David Bloomfield (Chief Supply Chain Officer), Craig Holden (Chief Operating Officer), Katie Maxwell (Chief Product Officer) and Tracy Carroll (Chief Marketing Officer).

 

These promotions strengthen our Operating Board, bringing together a group of talented leaders with a deep knowledge of the business. This team provides strong leadership and management across all core functions. But it's not just senior management that make a business - it's the energy and ability of all our people. Our Graduate Development Scheme continues to foster future talent and helps to drive the business. Indeed, we were delighted that, upon Katie Maxwell's recent promotion, she became the first person to be promoted to the C-suite having joined UP as a graduate. Our workforce is unafraid to challenge the status quo, and this mindset is actively encouraged because it fuels our culture of continuous improvement. Simply put, it is our people who give us confidence that our strategy is the right one to drive the business forward.

 

Performance

 

	2025	2024	Change	Change
	£'000	£'000	£'000	%
Revenue	150,135	155,497	(5,362)	-3%
Cost of sales	(115,288)	(115,043)	(245)	0%
Gross profit	34,847	40,454	(5,607)	-14%
Administrative expenses	(22,342)	(22,432)	90	0%
Adjusted EBITDA	12,505	18,022	(5,517)	-31%
Depreciation & amortisation	(2,149)	(2,191)	42	-2%
Finance expense	(1,651)	(1,381)	(270)	20%
Adjusted profit before tax	8,705	14,450	(5,745)	-40%
Tax expense	(2,424)	(3,820)	1,396	-37%
Adjusted profit after tax	6,281	10,630	(4,349)	-41%
ERP implementation costs	(640)	-	(640)
Share-based payment expense	(16)	(137)	121	-88%
Tax on adjusting items	182	34	148	434%
Statutory profit after tax	5,807	10,527	(4,720)	-45%

 

Sales

During the year, Group revenues decreased 3% (£5.4m) to £150.1m (2024: £155.5m), reflecting subdued consumer demand for general merchandise, with many consumers prioritising saving over spending. Three key factors influenced this performance:

·      Fall in air-fryer sales of £4.8m, down 32%

·      A reduction in third-party clearance sales of £8.8m, as opportunities reduced following the end of overstocking, leaving the category down 60% to £5.9m

·      An £8.2m (6%) increase in all remaining sales

 

Channel & Territory

 

	FY25	FY24	Change	Change
	£000	£000	£000	%
Supermarket	33,785	29,495	4,290	15%
Discounter	11,793	18,098	(6,305)	-35%
Online	29,016	30,332	(1,316)	-4%
Other	19,580	23,227	(3,647)	-16%
UK by Channel	94,174	101,152	(6,978)	-7%
Supermarket	13,265	15,914	(2,649)	-17%
Discounter	31,575	26,896	4,679	17%
Online	3,699	3,642	57	2%
Other	7,422	7,893	(471)	-6%
International by Channel	55,961	54,345	1,616	3%
Supermarket	47,050	45,409	1,641	4%
Discounter	43,368	44,994	(1,626)	-4%
Online	32,715	33,974	(1,259)	-4%
Other	27,002	31,120	(4,118)	-13%
Total by Channel	150,135	155,497	(5,362)	-3%

 

Ultimate Products' key channels to market are Supermarkets, Discounters and Online, all of which the Group will seek to grow over the medium to long term, both in the UK and internationally. The table above shows our revenue split by channel and territory. However, the figures are distorted by the two non-recurring factors noted above: the end of the air-fryer boom during Q1 and the normalisation of third-party clearance activity. To provide a clearer picture of trading performance, the table and commentary below strip out the impact of these two items.

 

	FY25	FY24	Change	Change
	£'000	£'000	£'000	%
Supermarket	29,506	23,345	6,161	26%
Discounter	10,673	16,281	(5,608)	-34%
Online	26,722	25,622	1,100	4%
Other	16,980	18,744	(1,764)	-9%
UK	83,881	83,992	(111)	0%
Supermarket	10,882	10,974	(92)	-1%
Discounter	29,326	20,715	8,611	42%
Online	3,623	3,602	21	1%
Other	6,376	6,633	(257)	-4%
International	50,207	41,924	8,283	20%
Supermarket	40,388	34,319	6,069	18%
Discounter	39,999	36,996	3,003	8%
Online	30,345	29,224	1,121	4%
Other	23,356	25,377	(2,021)	-8%
Total (excluding Air Fryers and 3P close-out)	134,088	125,916	8,172	6%
Air Fryers	10,178	14,962	(4,784)	-32%
Third-Party close-out	5,869	14,619	(8,750)	-60%
Total	150,135	155,497	(5,362)	-3%

 

Against subdued demand for consumer goods, it was pleasing to see sales to Supermarkets return to growth, rising 18% (£6.1m) to £40.4m, despite overall Group sales falling 3%. In the UK, this increase (26%) was driven by stronger trading from our supermarket customers, who have been winning general merchandise market share through their loyalty schemes. Disappointingly, despite the end of the overstocking issues that previously held back orders from German supermarkets, sales to international supermarkets remained flat at £10.9m.

 

Overall sales to discounters increased 8% to £40.0m. However, there was a marked difference in performance between Europe, which grew by 42% (£8.6m), and the UK (down 34%), where we were impacted by a customer's decision to concentrate on own label.

 

Online sales grew 4%, a modest increase that reflects generally subdued consumer demand. However, a positive highlight has been the strong performance of our own consumer-facing websites (salter.com & beldray.com), with their combined sales up 51% to £2.1m. While our own websites will remain less significant than the major e-commerce platforms, their success shows how we are growing our brands and strengthening our relationships with the end consumer.

 

A significant challenge during the period has come from some of our wider UK customer base of smaller retailers. Among these customers, we have seen a sales decline of 9% (£1.8m). These retailers are being affected by softer consumer demand and mounting cost pressures.

 

Overall, UK sales excluding air fryers and clearance were flat, which was a disappointing performance. Although this is against a backdrop of generally subdued consumer demand, we still believe that our products and brands can gain market share within our home market, where, except for our iconic Salter scales, we are still a challenger. More pleasing is our progress in Europe, where our sales performance has been driven by sales to European discounters, which are up 42% to £29m during the period.

 

 

 

 

 

 

 

 

 

 

 

Brand

 

	2025	2024	Change	Change	2025	2024
	£'000	£'000	£'000	%	%	%
Salter	52,004	56,354	(4,351)	-8%	35%	36%
Beldray	37,979	34,184	3,795	11%	25%	22%
Progress	5,004	5,871	(867)	-15%	3%	4%
George Wilkinson	7,193	1,536	5,657	368%	5%	1%
Petra	3,131	2,576	555	22%	2%	2%
Kleeneze	2,766	3,188	(422)	-13%	2%	2%
Other proprietorial brands	13,869	13,173	697	5%	9%	8%
UP Brands	121,946	116,882	5,064	4%	81%	75%
Licensed brands (Russell Hobbs)	14,376	12,059	2,317	19%	10%	8%
Third -party clearance & own label	13,813	26,556	(12,743)	-48%	9%	17%
Total	150,135	155,497	(5,362)	-3%	100%	100%

 

80% of our revenue now comes from the brands we own, and around 60% comes from our two principal brands: Salter (our scales and kitchen brand) and Beldray (our laundry and floorcare brand). Between them, these two British heritage brands have over 400 years of history and incredible consumer recognition. Over the past year, we have refined the development of our brand portfolio in a more strategic manner. This includes focusing our brand product development on core categories, employing a more brand-led approach to design, and concentrating our efforts on building brand equity, which we use to drive sales volumes.

 

We are therefore encouraged by the 4% growth in sales of our UP brands to £121.9m. These brands remain a key differentiator and the driver of long-term value creation. Against this trend, Salter, our iconic scales and kitchen brand, declined by 8% (£4.4m). However, this was due to the air fryer effect (£4.8m), without which Salter would have seen flat sales. Although not a decline, we still view this performance as disappointing, as excluding scales (which have a higher market share in the UK), we believe that Salter continues to have room to grow across both the UK and International markets in its chosen products categories. Beldray, which benefitted from a significant rebrand in the year, saw sales grow 11% (£3.8m) to £38.0m. Meanwhile, George Wilkinson, a cookware brand used by discounters seeking a level of exclusivity, experienced significant growth in the year as we expanded sales with EU discounters.

 

Russell Hobbs-branded cookware remains popular in Germany and France, where the brand is currently better known than Salter or Beldray. Sales in the period increased as overstocking issues at German supermarkets eased.

 

Third-party close-out and own label sales declined 48% to £13.8m. As noted earlier, third-party close-out fell by £8.8m, whereas own label fell by £4.0m. Own label sales arise when retailers use our expertise to source products which are then sold under the retailer's own-brand label. These sales are non-core, as they do not build long-term relationships with customers or consumers, and fell £4.0m in the period as a European retailer moved some of its audio supply in-house.

 

Product

 

	2025	2024	Change	Change	2025	2024
	£'000	£'000	£'000	%	%	%
Small Domestic Appliances	58,981	58,119	862	1%	39%	37%
Housewares	45,189	40,603	4,586	11%	30%	26%
Laundry	18,703	18,630	73	0%	12%	12%
Audio	12,786	15,160	(2,374)	-16%	9%	10%
Third-party close-out	5,869	14,619	(8,750)	-60%	4%	9%
Others	8,607	8,366	241	3%	3%	3%
Total	150,135	155,497	(5,362)	-3%	100%	100%

 

Our passion is product. By sourcing appealing branded products at prices that resonate with both our customers and end consumers, we have successfully grown our top line over the past ten years. We maintain a diversified product portfolio across multiple brands and categories, ensuring we are not overly reliant on any single product type or consumer trend, though we do concentrate product development around key areas.

 

Each year, we develop and aim to bring to market around 600 new products. This refresh brings exciting innovations to consumers and allows us to reset margins where cost structures have changed. Product development is an investment in the future and we must maximise the return on that investment. One of the benefits of selling internationally and online is the extension of product life cycles, as product lines can be sold to new consumers through these different channels. This enables us to tighten our product development process, focusing on a refined number of higher-quality, more innovative products, supported by a better-branded and more focused marketing strategy.

 

It was encouraging to see a return to growth in our Small Domestic Appliances (SDA) category. Modest growth of £0.9m (1%) was achieved despite the anticipated impact of air fryer sales, which declined by £4.8m. Housewares also returned to growth, up 11%, reflecting a resurgence in cookware sales after several years of overstocking.

 

The Group's strategy remains focused on our core product areas rather than subscale categories. In line with this, the most significant percentage decline was in 'third-party close-out', which fell £8.8m due to fewer opportunities. In addition, Audio decreased by 16% where one of our European retail customers chose to in-source some of their own label equipment.

 

Operating Margins

 

Gross margin decreased to 23.2% (2024: 26.0%), primarily due to an overall increase in freight charge of £3.1m. This is the absolute increase in freight charge year-on-year and can be split into two components. First, freight rates were elevated over the course of CY2024, driven by global capacity constraints following the closure of the Red Sea to international shipping. These higher rates led to an additional £2.0m shipping cost for the Year. Second, the expected benefit of the normalisation of rates during the second half of the year was tempered by the sales mix. Third-party clearance sales occur when we buy stock that has already been landed in Europe by other suppliers, meaning these sales do not have a high freight component. Therefore, the higher sales mix towards our own goods from China (which grew by 11% in H2) caused the absolute level of freight to increase. Gross margin was also impacted by the change in sales mix. Although third-party close-out sales are poor quality of earnings for the long term due to their one-off nature, they tend to be at a higher gross margin. In addition, sales to larger retailers such as big supermarkets and discounters tend to be at lower margin because of higher unit volumes.

 

Administrative expenses remained steady at £22.3m (2024: £22.4m). People-related costs were down 1% to £15.6m, despite a 6.2% increase in average cost per employee. This reflects both the externally imposed inflationary effects of the National Living Wage increase and the rise in employer National Insurance contributions (£100k for the current year, with a full-year effect of £300k), as well as our own commitment to employee remuneration designed to attract and retain talent. This approach supports productivity within the business, enabling us to reduce headcount by 6% to an average FTE of 347 (2024: 368). Our continued investment in robotic process automation and AI helps to mitigate cost pressures but also increases our level of future operational leverage.

 

The combination of a 3.4% fall in revenues, the gross margin impact of an additional £3.1m of freight costs, and flat overheads has led to a 31% fall in adjusted EBITDA to £12.5m (2024: £18.0m), with our adjusted EBITDA margin slipping from 11.6% to 8.3%.

 

Adjusted & statutory profit

 

Depreciation and amortisation decreased marginally by 2% to £2.1m (2024: £2.2m). The finance charge increased by 20% to £1.7m (2024: £1.4m) as a result of higher average net debt across the year, which was £19.2m in 2025 compared with £13.7m in 2024. Around £0.2m of the charge relates to fixed debt-related costs and imputed interest charges on capitalised lease liabilities. As a result, adjusted profit before tax decreased 40% to £8.7m (2024: £14.5m). The tax charge for the year was 27.9% (FY24: 26.4%), higher than the UK statutory rate of 25% due to the higher rate of tax paid on our European foreign branches.

 

During the period the Group embarked on the replacement of its core ERP system. The current system is reaching end-of-life, limiting its efficiency and automation potential. Upgrading it will be a critical step in further enhancing our operational capabilities. We currently estimate that the costs of implementing this system change will be in the region of £2m and will be expensed in the period in which they occur. It is currently expected that the new system will launch during FY27. In the current period, we expended £640k in relation to the project (2024: £nil). These costs have been shown separately in the Income Statement to better reflect the performance of the underlying business.

 

Earnings per share

 

As a result of our ongoing share buyback scheme the number of shares in issue has decreased from 88,628,572 at 31 July 2024 to 86,330,132 at 31 July 2025, with the weighted average number of shares decreasing 2% to 87,478,678 (31 July 2024: 89,213,704).

 

	2025	EPS	2024	EPS
	£'000	p	£'000	p
Adjusted profit after tax / Adjusted EPS	6,281	7.4	10,630	12.3
Exceptional items	(640)	(0.8)	-	-
Share-based payment expense	(16)	(0.0)	(137)	(0.2)
Tax on adjusting items	182	0.2	34	0.0
Statutory profit after tax / Basic EPS	5,807	6.8	10,527	12.2

 

As a result, adjusted profit after tax decreased 41% and adjusted earnings per share decreased by 40%. Statutory profit after tax decreased 45% and statutory earnings per share decreased by 44%.

 

 

 

Financing and cash flow

 

The Group generated £10.3m of cash from operating activities (2024: £18.5m), representing an operating cash conversion of 82%. During the year, we saw an increase in the level of investment in working capital of £2.4m. Overall, stock levels have fallen year-on-year. However, the level of stock that has been paid for has increased marginally.

 

	2025	2024	Change	Change
	£'000	£'000	£'000	%
Sold Stock	13,500	11,967	1,533	13%
Free Stock	10,152	10,724	(572)	-5%
Goods in Transit	8,800	13,887	(5,087)	-37%
Total Stock	32,452	36,578	(4,126)	-11%

 

Goods-in-Transit reached a peak last year due to the closure of the Red Sea. In addition, the Group has seen an increase in the level of Sold Stock, which is stock that has been brought in on behalf of one of our larger customers who place orders 6-9 months ahead of delivery. Free Stock, which is stock that the Group brings into the country to sell direct to consumers and smaller retail customers, has remained stable.

 

As a result, at the year end the Group had a net bank debt/adjusted EBITDA ratio of 1.1x (2024: 0.6x), which represents net bank debt of £14.1m (2024: £10.4m). During the year, the Group sees significant movements in its working capital requirement due to the timings of customer orders. As such, a longer view can be helpful when considering the level of gearing within the business, with the 12-month rolling average ratio of net bank debt/adjusted EBITDA being 1.3x (2024: 0.7x).

 

	2025	2024	Change	Change
	£'000	£'000	£'000	%
Cash	4,063	4,733
RCF/Overdraft	(6,367)	(4,791)
Invoice Discounting	(6,825)	(8,765)
Import Loans	(5,042)	(1,668)
Debt Issue Costs	60	73
Net bank debt	(14,111)	(10,418)	(3,693)	-35%

 

Capital Allocation Policy

 

It is the Board's intention to maintain the net bank debt/adjusted EBITDA ratio at around 1.0x, with the debt being used to fund the Group's working capital. The Board believes that this level of leverage is an efficient use of the Group's balance sheet and allows for further returns of capital to shareholders. The Board also intends to continue investing in the business for growth while returning around 50% of post-tax profits to shareholders through dividends, and to supplement this with share buybacks pursuant to a policy of maintaining net bank debt at around 1.0x adjusted EBITDA ratio.

 

The Group returned £2.6m of cash to shareholders through the share buyback (2024: £1.1m). As we are currently above this level at 1.1x adjusted EBITDA, the buyback is currently paused.

 

In line with our policy, the Board is proposing a final dividend of 2.15p per share (FY24: 4.93p per share), resulting in a total dividend for the year of 3.7p per share (FY24: 7.38p per share). Subject to shareholder approval at the AGM on 12 December 2025, the final dividend will be paid on 30 January 2026 to shareholders on the register at the close of business on 5 January 2026 (ex-dividend date 2 January 2026).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Income Statement

For the year ended 31 July 2025

		2025   £'000	2024  £'000
Revenue		150,135	155,497
Cost of sales		(115,288)	(115,043)
Gross profit		34,847	40,454
Adjusted earnings before interest, tax, depreciation, amortisation, share-based payments & non‑recurring items ('Adjusted EBITDA')		12,505	18,022
Depreciation and loss on disposal of fixed assets		(2,104)	(2,169)
Amortisation of intangibles		(45)	(22)
Share-based payment expense		(16)	(137)
ERP implementation costs		(640)	-
Total administrative expenses		(25,147)	(24,760)
Operating profit		9,700	15,694
Finance expense		(1,651)	(1,381)
Profit before tax		8,049	14,313
Tax expense		(2,242)	(3,786)
Profit for the year attributable to equity holders of the Company		5,807	10,527
All amounts relate to continuing operations
Earnings per share
Basic		6.8	12.2
Diluted		6.7	12.0

 

 

Consolidated Statement of Comprehensive Income

For the year ended 31 July 2025

	2025  £'000	2024  £'000
Profit for the year	5,807	10,527
Items that may subsequently be reclassified to the income statement
Fair value movements on cash flow hedging instruments	(1,910)	(1,108)
Hedging instruments recycled through the income statement at the end of hedging relationships	564	1,605
Deferred tax relating to cashflow hedges	335	(123)
Items that will not subsequently be reclassified to the income statement
Foreign currency translation	-	-
Other comprehensive (loss)/income	(1,011)	374
Total comprehensive income for the year attributable to the equity holders of the Company	4,796	10,901

 

 

Consolidated Statement of Financial Position

At 31 July 2025

		2025 £'000	2024 £'000
Assets
Intangible assets		37,072	36,981
Property, plant and equipment		5,800	7,574
Total non-current assets		42,872	44,555
Inventories		32,452	36,578
Trade and other receivables		26,779	29,710
Derivative financial instruments		47	667
Current tax		20	-
Cash and cash equivalents		4,063	4,733
Total current assets		63,361	71,688
Total assets		106,233	116,243
Liabilities
Trade and other payables		(29,735)	(39,084)
Derivative financial instruments		(1,828)	(996)
Current tax		-	(105)
Borrowings		(18,174)	(15,151)
Lease liabilities		(821)	(811)
Total current liabilities		(50,558)	(56,147)
Net current assets		12,803	15,541
Deferred tax		(6,678)	(6,898)
Lease liabilities		(2,601)	(3,436)
Total non-current liabilities		(9,279)	(10,334)
Total liabilities		(59,837)	(66,481)
Net assets		46,396	49,762
Equity
Share capital		216	221
Share premium		14,334	14,334
Capital redemption reserve		7	2
Employee Benefit Trust reserve		(2,071)	(1,946)
Share-based payment reserve		1,376	1,431
Hedging reserve		(1,297)	(286)
Retained earnings		33,831	36,006
Equity attributable to owners of the Group		46,396	49,762