Ultimate Products PLC (LSE:ULTP), the consumer goods group that owns homeware brands including Salter and Beldray, reported a 3.5% decline in full-year revenue to £144.9 million following subdued retail demand and a deliberate reduction in clearance sales.
Sales across proprietary brands rose by 5.3% to £128.4 million for the financial year ended 31 July 2026, driven by a strategic focus on building core brand equity.
Revenue from licensed brands fell by 23.6% to £11.0 million during the period.
Third-party clearance and white-label revenue dropped by 60.0% to £5.5 million as the group curtailed non-core activities.
The group posted an unaudited adjusted EBITDA, or earnings before interest, tax, depreciation, and amortisation, of £10.0 million.
A changing sales mix reduced the group's gross profit margin from 23.2% to 22.6%.
Operating costs remained stable at £22.8 million, which included £760,000 in restructuring expenses related to the transformation of the commercial division.
Net bank debt fell from £14.1 million to £8.6 million at the year-end, bringing the net debt-to-adjusted EBITDA ratio down to 0.9 times.
Trading improved in the second half of the financial year, with revenue falling by 0.3% compared with a 5.8% decline in the first six months.
The board stated that it expects trading in the 2027 financial year to remain similar to 2026 levels because of persistent geopolitical uncertainty and muted consumer demand.
Chris Dent, the chief financial officer of Ultimate Products, said the business transformed its commercial function during the year to expand market share and maximise the potential of its key brands.