Business
COVID-19 update
COVID-19 update.
About this update from Ultimate Products Plc
[{"type":"text","content":"\n \n \n RNS Number : 7128G\n UP Global Sourcing Holdings PLC\n 19 March 2020\n \n \n \n \n 19 March 2020\n \n \n UP Global Sourcing Holdings PLC \n \n \n \"Ultimate Products\" or \"the Company\"\n \n \n COVID-19 update\n \n \n Production resilient but outlook uncertain\n \n \n \n \nUltimate Products, the owner, manager, designer and developer of an extensive range of value-focused consumer goods brands, today provides an update in light of recent developments regarding COVID-19.\n \n \n \n \n \n On the supply side of the business, the Company is pleased to report that its manufacturing operations in China have now broadly normalised, with over 90% of its factories back up to full production. The Board currently estimates that the delays experienced in China earlier in the year will result in an impact of around £0.8m on FY20 revenue.\n \n \n \n \n \n However, on the demand side of the business, in the last 24 hours the Company has started to receive indications from a small but growing number of its customers in both the UK and Europe that they intend to review, defer or put on hold orders that have already been placed. In addition, some customers are delaying intake into their warehouses as they reallocate storage space for food and household essentials.\n \n \n \n \n \n As a result, the Board is anticipating a significant drop in revenue in H2 FY20 compared to expectations, which will inevitably impact profitability for FY20. However, it is too early to predict the exact quantum of the impact.\n \n \n \n \n \n The Board is confident that the business has sufficient financial strength to trade its way through the current disruption, which is expected to be temporary. The Group has a strong balance sheet and maintains substantial levels of headroom, having recently extended its banking facilities with HSBC to 2024.\n \n \n \n \n \n Further to the details given in our trading update on 10 February, underlying EBITDA for the six months ended 31 January 2020 (\"H1 FY20\") is expected to be £7.2m on an IFRS16 basis (H1 F19 - £7.0m), and £6.9m on a pre-IFRS16 basis (H1 FY19 - £6.6m). Underlying PBT for the same period is expected to be £6.2m (both on a pre and post IFRS16 basis) (H1 FY19 - £5.9m).\n \n \n \n \n \n \n \n \n Commenting on the update, Simon Showman, Chief Executive of Ult...