Ultimate Products Plc · LSE:ULTP
Ultimate Products — UP Global Sourcing Holdings — FY2018 Earnings Presentation
30 slides from Ultimate Products's earnings presentation, Nov 1, 2018
Slide 1: UP Global Sourcing Holdings plc Full Year Results FY18
UP GLOBAL SOURCING HOLDINGS PLC Full Year Results FY18 20 18 www.upgs.com
Slide 2: Disclaimer
DISCLAIMER UP Global Sourcing Holdings plc This content of information contained in these slides and the or opinions. No person has been authorised to give any information or accompanying presentation comprises an institutional presentation (the make any representations other than those contained in
Slide 3: Agenda
AGENDA UP Global Sourcing Holdings plc 1. Introduction 3. Strategy & Outlook Simon Showman Andrew Gossage 2. FY18 Financial Review Q 4. Questions & Answers Graham Screawn A BELDRAY Airgility Cordless Cordless, Effortless Cleaning 2
Slide 4: Introduction: Who We Are
INTRODUCTION UP Global Sourcing Holdings plc Who We Are EST. IN EMPLOY SELL TO 1997 IN MANCHESTER 240+ PEOPLE ACROSS 300+ RETAILERS ACROSS THE GROUP 36 COUNTRIES SALTER DiamondTech Fry Pan • Established in Manchester in 1997 Diamond Effect Non Stick Coating • A brands house of consumer goods for the
Slide 5: FY18 Summary
INTRODUCTION UP Global Sourcing Holdings plc FY18 Summary REVENUE UNDERLYING PBT £87.6 m £5.6 m - 20.4% - 47.3% (FY17: £110.0 m) (FY17: £10.7 m) • Total revenue decreased 20.4% to £87.6 m (FY17: £110.0 m) • Underlying EBITDA decreased 43.8% to £6.5 m (FY17: £11.5 m) • Gross margin stable at 22.4% (F
Slide 6: Operational Highlights: Houseproud
INTRODUCTION UP Global Sourcing Holdings plc Houseproud Operational Highlights for almost PURCHASE OF HERITAGE BRAND 100 years... Rebrand & product focus Staying Houseproud SINCE 1923 • Purchased out of administration in June 2018 • Now relaunching it with a range of laundry and floorcare products L
Slide 7: Operational Highlights: Relaunch of Heritage Brand
INTRODUCTION UP Global Sourcing Holdings plc Operational Highlights RELAUNCH OF HERITAGE BRAND Innovation & Progression Est. 1931 Key Customers 4 6
Slide 8: Operational Highlights: Single Pick Facility
INTRODUCTION UP Global Sourcing Holdings plc Operational Highlights PICK PACK POST SINGLE PICK FACILITY TO SUPPORT ONLINE GROWTH 7 4
Slide 9: Operational Highlights: Online Platform
INTRODUCTION UP Global Sourcing Holdings plc Operational Highlights ONLINE PLATFORM An automated link between our systems and our customers 80%+ time saving generated Better stock management Easier to focus on the winners 8
Slide 10: Operational Highlights: Cologne Showroom Now Open
INTRODUCTION UP Global Sourcing Holdings plc Operational Highlights new •COLOGNE SHOWROOM NOW OPEN • A number of major retail accounts already open Orders taken to date ahead of management’s expectations 9
Slide 11: Operational Highlights: Graduate Recruitment
INTRODUCTION UP Global Sourcing Holdings plc Operational Highlights FY17 NOW 100th graduate Further Across Within recruited 47 graduates 18 different 9 different key recruited entry level roles departments 10
Slide 12: FY18 Financial Review: Income Statement
FY18 FINANCIAL REVIEW UP Global Sourcing Holdings plc 12M JUL 12M JUL 12M JUL % Income Statement 2016 £’m 2017 £’m 2018 £’m CHANGE Turnover 79.0 110.0 87.6 -20.4% • Gross margin stable at 22.4% with changing Gross Profit 18.9 24.6 19.6 -20.3% customer mix and product innovation mitigating Far East a
Slide 13: Profit After Tax Bridge
FY18 FINANCIAL REVIEW UP Global Sourcing Holdings plc Profit After Tax Bridge +2,831 8,406 (5,001) 5,575 (192) +1,246 4,474 4,282 +26 (203) Profit after Exceptional Underlying Volume Margin mix Overheads Underlying Underlying Exceptional Profit after tax FY17 items after profit after reduction and c
Slide 14: Segmental Analysis: Geographical
FY18 FINANCIAL REVIEW UP Global Sourcing Holdings plc Segmental Analysis 12M JUL 12M JUL 12M JUL % Geographical & Strategic Pillar 2016 £’m 2017 £’m 2018 £’m CHANGE • International and Discount sales impacted Geographical Analysis by one-off revenue deferral (switch from FOB to landed supply) UK 58.
Slide 15: Segmental Analysis: Brand
FY18 FINANCIAL REVIEW UP Global Sourcing Holdings plc Segmental Analysis continued... Brand 12M JUL 12M JUL 12M JUL % 2016 £’m 2017 £’m 2018 £’m CHANGE • Premier brands share of sales increased 1.5% to 61.5% with Progress sales at £3.2 m in its first full year Analysis by Brand Beldray 19.1 30.8 21.
Slide 16: Segmental Analysis: Major Products
FY18 FINANCIAL REVIEW UP Global Sourcing Holdings plc Segmental Analysis continued... 12M JUL 2016 £’m 12M JUL 2017 £’m 12M JUL 2018 £’m % CHANGE Major Product Areas Analysis by Major Products • With over 70% of revenue in the UK the Small Domestic Appliances 20.8 24.6 21.4 -13.1% tough environment
Slide 17: Balance Sheet
FY18 FINANCIAL REVIEW UP Global Sourcing Holdings plc 31 JUL 31 JUL 31 JUL 2016 £’m 2017 £’m 2018 £’m Balance Sheet Non-current Assets Tangible Assets 1.0 1.7 2.0 • Net assets increased £1.9 m to £8.7 m Intangible Assets - - 0.1 Deferred Tax 0.2 0.2 0.1 • Stock increase of £5.4 m driven by higher Q1
Slide 18: Cash Flow
FY18 FINANCIAL REVIEW UP Global Sourcing Holdings plc Cash Flow 12M JUL 2016 £’m 12M JUL 2017 £’m 12M JUL 2018 £’m Net Cash from Operations • Tax credit on IPO reduced FY18 tax payments EBITDA 7.0 8.3 6.3 by £1.3 m and FY17 by £0.8 m Other Non-cash items - 0.1 0.1 Working Capital Movements 1.7 (8.3)
Slide 19: Strategy
STRATEGY UP Global Sourcing Holdings plc 1 Discount 2 UK Supermarkets 3 Online Channels 4 International SALTER Megastone Metal Utensil Safe Cookware. 18
Slide 20: Outlook
OUTLOOK UP Global Sourcing Holdings plc BELDRAY Bathroom Collection Functional, Practical and Trendy • Current trading in line with expectations • As a result of unwavering focus on strategy, customers who reduced business in FY18 are now increasing orders again – due to UP’s superior service, quali
Slide 21: Appendices
UP Global Sourcing Holdings plc Appendices 20
Slide 22: Key Brands: Beldray
KEY BRANDS UP Global Sourcing Holdings plc Laundry Bathroom Garment Care Beldray (originally ‘Bradley and Co. Ltd) is our trademark brand, a brand that since its beginnings in 1872 has become prominent in cleaning and safety equipment. The first manufacturer of steel ironing tables in the UK and inv
Slide 23: Key Brands: Intempo
KEY BRANDS UP Global Sourcing Holdings plc At Intempo, we take the latest technology and create audio products that we believe look Headphones Bluetooth Party Speakers great and sound even better. Our exciting range has been designed to support many applications, including iPad, iPhone and other dev
Slide 24: Key Brands: Salter
KEY BRANDS UP Global Sourcing Holdings plc Kettles and Toasters Air Fryers Grills For over 250 years, Salter has proudly created and manufactured great products to enhance your lifestyle. A brand synonymous with precision and quality, it is a familiar household name with a proud heritage that contin
Slide 25: Key Brands: Russell Hobbs
KEY BRANDS UP Global Sourcing Holdings plc Loved by the Great British public for over half a century, Russell Hobbs is a household brand with a strong heritage and is famous for its stylish and high quality products. Pans Laundry Kitchen Tools Licensed since 2011 until 2020 for a wide variety of pro
Slide 26: Key Brands: Progress
KEY BRANDS UP Global Sourcing Holdings plc Established in 1931 in Burnley, Lancashire, Progress has 86 years of heritage as a Northern brand, renowned for great quality, great value products. To this day, it remains a classic brand with a 21st century feel, offering everything a Pans Air Fryers Kitc
Slide 27: Board of Directors
BOARD OF DIRECTORS UP Global Sourcing Holdings plc Jim McCarthy (62) Simon Showman (45) Andrew Gossage (47) Graham Screawn (51) Independent Chief Executive Managing Director Chief Financial Officer Non-Executive Officer Chairman James has over 40 years’ experience in the Simon began his career worki
Slide 28: Board of Directors
BOARD OF DIRECTORS UP Global Sourcing Holdings plc Alan Rigby (62) Robbie Bell (45) Barry Franks (72) Senior Independent Independent Non-Executive Non-Executive Non-Executive Director Director Director Alan spent the majority of his working career at Having been appointed Chief Finance Officer at Ba
Slide 29: UP Global Sourcing Holdings plc
UP Global Sourcing Holdings plc PORTOBELLO Footed Mugs British By Design 28
Slide 30: UP Global Sourcing Holdings plc Full Year Results FY18
20 18 UP GLOBAL SOURCING HOLDINGS PLC Full Year Results FY18
UP Global Sourcing Holdings — FY2018 Earnings Presentation on 6ix