Ultimate Products Plc · LSE:ULTP
Ultimate Products — UP Global Sourcing Holdings — H1 FY22 Earnings Presentation
30 slides from Ultimate Products's earnings presentation, Apr 1, 2022
Slide 1: Welcome to the Home of Brands: Interim Report H1 FY22
ULTIMATE PRODUCTS WELCOME TO THE HOME OF BRANDS UP GLOBAL SOURCING HOLDINGS PLC Interim Report H1 FY 22 www.upgs.com
Slide 2: Disclaimer
SALTER Eco Scales DISCLAIMER This content of information contained in these slides and the any such person as to the accuracy, completeness or fairness of the accompanying presentation comprises an institutional presentation information or opinions contained in this Presentation and no (the Presenta
Slide 3: Interim Results H1 FY22 Agenda
INTERIM RESULTS H1 FY 22 AGENDA 1 2 INTRODUCTION / UP Global Sourcing Holdings plc Introduction Financial Review Simon Showman Graham Screawn 3 Strategy & Outlook Q A 4 Questions & Answers Andrew Gossage 2
Slide 4: Who We Are
WHO WE ARE Est. Employ Sell to 1997 350+ 300+ In Manchester People Across Retailers Across The Group 43 Countries INTRODUCTION / UP Global Sourcing Holdings plc • A brands house of consumer goods for the home • Mass market and value led • Five major product categories: Small Domestic Appliances, Hou
Slide 5: H1 FY22 Summary
KLEENEZE Home Solutions H1 FY 22 SUMMARY REVENUE UNDERLYING PBT £85.7 m £9.9 m + 13.7 % + 28.6 % (H1 FY 21 : £75.4 m) (H1 FY 21 : £7.7 m) • Total revenue increased 13.7 % to £85.7 m (H1 FY 21 : £75.4 m) INTRODUCTION / UP Global Sourcing Holdings plc • Underlying EBITDA increased 28.7 % to £11.3 m (H
Slide 6: Our History
OUR HISTORY Ultimate Products is founded Lloyd Development Opening of Intempo brand Beldray by Simon Showman Capital invests in the Guangzhou bought out of brand and Barry Franks the business Showroom administration acquired 1997 2005 2009 2009 2009 Progress Management brand team buy back Ultimate P
Slide 7: H1 FY22 Financial Review
BELDRAY 150 Year Anniversary Collection H1 FY 22 H1 FY 22 FINANCIAL REVIEW / UP Global Sourcing Holdings plc FINANCIAL REVIEW Graham Screawn Income Statement Profit After Tax Bridge Segmental Analysis Geographical & Strategic Pillar Brand Major Product Areas Balance Sheet Cash Flow 6
Slide 8: Income Statement
6M JAN 6M JAN % 12M JUL 2022 £’m 2021 £’m CHANGE 2021 £’m INCOME STATEMENT Revenue 85.7 75.4 +13.7 % 136.4 • Revenue increased by 13.7 % to £85.7 m. Gross Profit 20.9 17.2 +21.6 % 30.2 Excluding the Salter acquisition which took % 24.4 % 22.8 % +1.6 % 22.2 % place in July 2021, the growth of the core
Slide 9: Underlying Profit After Tax Bridge
UNDERLYING PROFIT AFTER TAX BRIDGE H1 FY 22 FINANCIAL REVIEW / UP Global Sourcing Holdings plc 477 1,428 879 2,362 84 490 7,750 6,034 Underlying Increase in Salter licence Margin mix Increase in Interest Underlying tax Underlying profit after revenue fee saving overheads and profit after tax H1 FY 2
Slide 10: Segmental Analysis: Geographical
6M JAN 6M JAN % 12M JUL 2022 £’m 2021 £’m CHANGE 2021 £’m SEGMENTAL ANALYSIS Geographical Analysis Geographical UK 56.7 51.8 +9.6 % 92.9 • International revenue was ahead of Germany 11.8 7.4 +59.0 % 13.9 last year, by 22.8 % at £29.0 m (H1 FY21 : Rest of Europe 14.9 15.0 -1.1 % 27.7 £23.6 m) USA 0.4
Slide 11: Segmental Analysis: Strategic Pillar
6M JAN 6M JAN % 12M JUL Analysis of Revenue by Strategic Pillar 2022 £’m 2021 £’m CHANGE 2021 £’m Supermarkets 31.8 21.4 +48.5 % 38.9 Discount Retailers 25.1 28.4 -11.5 % 51.5 Online Channels 12.8 11.8 +8.8 % 20.6 69.7 61.6 111.0 SEGMENTAL ANALYSIS Multiple Store Retailers 9.2 8.5 +7.8 % 15.6 CONTIN
Slide 12: Segmental Analysis: Brand
SEGMENTAL ANALYSIS 6M JAN 2022 £’m 6M JAN 2021 £’m % CHANGE 12M JUL 2021 £’m CONTINUED... Brand Analysis of Revenue by Brand • Premier brands grew by 28.5 % to £70.4 m Beldray 23.8 21.5 +10.9 % 42.4 (H1 FY21 : £54.8 m) Salter (Existing) 17.7 16.6 +6.5 % 28.3 H1 FY 22 FINANCIAL REVIEW / UP Global Sou
Slide 13: Segmental Analysis: Major Product Areas
6M JAN 6M JAN % 12M JUL 2022 £’m 2021 £’m CHANGE 2021 £’m SEGMENTAL ANALYSIS CONTINUED... Analysis of Revenue by Major Products Major Product Areas Small Domestic Appliances 31.9 28.7 +11.2 % 48.7 • Strong growth in each of Small Domestic Housewares (Existing) 24.0 19.8 +21.1 % 35.8 Appliances, Hous
Slide 14: Balance Sheet
6M JAN 6M JAN 12M JUL 2022 £’m 2021 £’m 2021 £’m Non-current Assets Tangible Assets 5.7 5.1 5.7 BALANCE SHEET Intangible Assets 27.2 0.1 27.2 Goodwill 9.7 - 9.7 Deferred Tax Asset - 0.2 - • Increase in Non-current Assets since H1 FY21 as a result of the Intangible Assets and Goodwill arising on the
Slide 15: Cash Flow
6M JAN 6M JAN 12M JUL 2022 £’m 2021 £’m 2021 £’m Net Cash from Operations CASH FLOW EBITDA 11.1 8.2 11.6 Other Non-cash items 0.2 (0.3) (0.4) Working Capital Movements (16.4) 0.2 0.6 • Net cash from operations was an outflow of Tax Paid (1.4) (1.3) (2.6) £6.5 m (H1 FY21 : £6.8 m inflow) as working cap
Slide 16: Strategy & Outlook
STRATEGY & OUTLOOK STRATEGY & OUTLOOK / UP Global Sourcing Holdings plc 1 International 2 Supermarkets 3 Online Channels 4 Discount Retailers SALTER Smart Scale 15
Slide 17: Developments in the Consumer Market
STRATEGY & OUTLOOK DEVELOPMENTS IN THE CONSUMER MARKET STRATEGY & OUTLOOK / UP Global Sourcing Holdings plc More time will be spent in Cleaning and hygiene will remain a the home compared to pre-COVID times high priority An opportunity for homeware brands An opportunity for Beldray and Kleeneze Home
Slide 18: Strategy & Outlook
STRATEGY & OUTLOOK • The Board anticipates a full year profit STRATEGY & OUTLOOK / UP Global Sourcing Holdings plc performance in line with current market expectations • The current cost of living crisis together with increased personal taxation and benefits is leading to a general fall in disposable
Slide 19: Investment Summary
INVESTMENT SUMMARY Growth 1 Targeting a market of 500 million consumers across UK and Europe STRATEGY & OUTLOOK / UP Global Sourcing Holdings plc Income 2 A capital light model with a dividend policy of distributing 50 % of Profit after tax PROGRESS by WW Hot Air Fryer Resilience 3 Financial strength
Slide 20: Appendices
APPENDICES Key Brands SALTER Coordinated Black and Silver Collection Beldray Salter Russell Hobbs APPENDICES / UP Global Sourcing Holdings plc Progress Intempo Kleeneze Board of Directors 19
Slide 21: Key Brands: Beldray
12M JUL 12M JUL 12M JUL 2019 £’m 2020 £’m 2021 £’m Revenue ttreated t d with i Turnover 32.3 32.8 42.4 ANTIBAC A protection Growth +50.5 % +1.5 % +29.3 % Compound Growth +14.6 % Anti-Bac Bathroom Pet Plus Key Customers KEY BRANDS / UP Global Sourcing Holdings plc Garment Care Floorcare Heating & Coo
Slide 22: Key Brands: Salter
12M JUL 12M JUL 12M JUL 2019 £’m 2020 £’m 2021 £’m Revenue Turnover 20.9 25.8 28.4 Growth +50.8 % +23.7 % +9.9 % Compound Growth +16.6 % Coordinated Collections Pans Ovenware KEY BRANDS / UP Global Sourcing Holdings plc Key Customers Ovens Dinnerware Baking For over 250 years, Salter has proudly cre
Slide 23: Key Brands: Russell Hobbs
12M JUL 12M JUL 12M JUL 2019 £’m 2020 £’m 2021 £’m Revenue Turnover 9.4 11.7 16.8 Growth +35.5 % +25.3 % +43.4 % Compound Growth +34.1 % Pans Laundry Enamel Key Customers KEY BRANDS / UP Global Sourcing Holdings plc Kitchen Tools Countertop Food Prep Russell Hobbs is a licensed brand offering a wide
Slide 24: Key Brands: Progress
12M JUL 12M JUL 12M JUL 2019 £’m 2020 £’m 2021 £’m Revenue Turnover 4.1 4.4 6.7 Growth +27.6 % +7.7 % +51.6 % Compound Growth +27.7 % Air Fryers Kettles Cookshop KEY BRANDS / UP Global Sourcing Holdings plc Key Customers Taste the World Grills Food Prep Established in 1931 in Burnley, Lancashire, Pr
Slide 25: Key Brands: Intempo
12M JUL 12M JUL 12M JUL 2019 £’m 2020 £’m 2021 £’m Revenue Turnover 8.2 5.0 6.5 Growth -2.5 % -38.8 % +29.0 % Compound Growth -11.1 % True Wireless Speakers Vlogging & Work from Home Key Customers KEY BRANDS / UP Global Sourcing Holdings plc Gaming Smart Home Charging Intempo combines on-trend desig
Slide 26: Key Brands: Kleeneze
12M JUL 12M JUL 12M JUL 2019 £’m 2020 £’m 2021 £’m Revenue Turnover 0.2 1.2 2.1 Growth - +616.8 % +80.6 % Compound Growth +259.8 % Cleaning Storage Laundry KEY BRANDS / UP Global Sourcing Holdings plc Key Customers Ironing Floorcare Heating and Cooling A brand steeped in history, Kleeneze began in 1
Slide 27: Board of Directors
Jim McCarthy Simon Showman Andrew Gossage Graham Screawn Independent Chief Executive Officer Managing Director Chief Financial Officer Non-Executive Chairman BOARD OF DIRECTORS / UP Global Sourcing Holdings plc James has over 40 years’ experience in the Simon began his career working for an Andrew i
Slide 28: Board of Directors
Alan Rigby Robbie Bell Jill Easterbrook Christine Adshead Senior Independent Independent Independent Independent Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director BOARD OF DIRECTORS / UP Global Sourcing Holdings plc Alan spent the majority of his working Rob
Slide 29: Slide 29
Slide 30: Ultimate Products
ULTIMATE PRODUCTS
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