Business
Improved FY23 Net Debt Expectations
Improved FY23 Net Debt Expectations.
About this update from Ultimate Products Plc
[{"type":"text","content":"\n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (\"MAR\"). UPON PUBLICATION OF THIS ANNOUNCEMENT THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.\n \n\n\n \n17 July 2023\n \nUP Global Sourcing Holdings plc\n(\"Ultimate Products\" or \"the Group\")\n \nYear End Net Debt expected to be c.£15m, significantly better than market expectations\n \nUltimate Products, the owner of a number of leading homeware brands including Salter (the UK's oldest houseware brand, est.1760) and Beldray (est.1872), is pleased to announce that it expects its financial year end net debt to be in the region of £15m, which is significantly ahead of current market expectations of around £21m.\n \nAs announced on 7 June 2023, current trading remains in line with market expectations, which, due to the improved net debt position, is expected to result in a substantially improved net bank debt/adjusted EBITDA ratio of 0.7x as at 31 July 2023 (31 July 2022: 1.3x). The improved net debt performance is due to ongoing improvements in working capital management and the phasing of trading during the second half of the year.\n \nGiven that current interest rates are causing finance costs to increase, the Group is pleased that the lower net debt helps to mitigate these rises. In addition, the Group continues to hold a suite of hedging instruments composed of a number of interest rate caps and swaps, which have greatly reduced the effect that rising interest rates have had on its income statement.\n \nLower net debt and hedged interest rates will continue to result in financing charges at Ultimate Products being in line with current market expectations of £1.2m for the current year, and £0.9m for 2024.\n \nThe person responsible for arranging the release of this announcement on behalf of Ultimate Products is Chris Dent, Chief Financial Officer.\n \nFor more information, please contact:\n \nUltimate Products +44 (0) 161 627 1400\nSimon Showman, CEO\nAndrew Gossage, Managing Director\nChris Dent, Chief Financial Officer\n \nShore Capital +44 (0) 20 7408 4090\nMark Percy\nMalachy McEntyre\nDavid Coaten\nIain Sexton\n \nPowerscourt +44 (0) 207 2...