Strong sales growth, sustained profit margins and abundant free cash flow were key features of UP’s FY2023 financial results. Moreover, the company combined significant advances with its brand portfolio with operational efficiency improvements, both in the UK and internationally. The results confirmed the Company’s 15th August trading update, as sales advanced 8% and the EBITDA and pretax profit measures were £20.2m (+8%) and £16.8m (+6%) respectively. Net bank debt closed the year at £14.8m compared with £24.3m at end FY2022 and was lower earlier in the year. Robust underlying free cash flow is consistent with a proposed 7.4p full year dividend, in line with UP’s 50% pay-out policy. Profitability benefited from a number of initiatives in FY2023, as well as a focus on continuous improvement. Importantly, last year’s sales growth was not driven by price inflation. Given the company’s confidence that it will meet expectations in FY2024 and a visible growth trajectory, we reiterate our 250p fair value for the shares.