Ultimate Products Plc · LSE:ULTP
Ultimate Products — UP Global Sourcing Holdings — H1 2020 Earnings Presentation
7 slides from Ultimate Products's earnings presentation, April 2020
Slide 1: Welcome to the Home of Brands - Interim Results FY20
WELCOME TO THE HOME OF BRANDS UP GLOBAL SOURCING HOLDINGS PLC INTERIM RESULTS FY20 www.upgs.com
Slide 2: Interim Results FY20: Agenda
INTERIM RESULTS FY20: AGENDA 1. FINANCIAL & OPERATIONAL HIGHLIGHTS 2. COVID-19: IMPACT & RESPONSE 3. H1 TRADING OVERVIEW BY CUSTOMER-TYPE 4. H1 OPERATIONAL REVIEW 5. CURRENT TRADING & OUTLOOK
Slide 3: Financial & Operational Highlights
1. FINANCIAL & OPERATIONAL HIGHLIGHTS • Revenue up 2.8% (or £1.9m) to £67.7m (H1 FY19: £65.8m), driven by UK and European supermarket customers (revenue up 45.4%) and online platforms (revenue up 25.5%) • International revenue up 9.8% on an underlying basis (i.e. excluding the cessation of business
Slide 4: COVID-19: Impact & Response
2. COVID-19: IMPACT & RESPONSE SUPPLY: • Manufacturing operations in China have now normalised, with over 90% of our factories back up to full production • Delays earlier in the year estimated to result in a reduction of c. £0.8m to FY20 revenue DEMAND: • Customers deferring / cancelling existing or
Slide 5: H1 Trading Overview by Customer-Type
3. H1 TRADING OVERVIEW BY CUSTOMER-TYPE DISCOUNTERS: • Sales declined by £5.6m or 16.5% • Driven by cessation of business with our largest German customer as its parent company undertook a strategic review of that operation • Relative decline in intake from another large European customer as a resul
Slide 6: H1 Operational Review
4. H1 OPERATIONAL REVIEW RENEWAL OF BANK FACILITIES • Prior to the renewal: o RCF of £6.2m, invoice discounting (“ID”) facility of £17m, import loan facility of £8.7m • As a result of the renewal: o RCF and ID facility extended to 2024 and increased to £8.2m (up £2.0m) and £23.5m (up £6.5m) respecti
Slide 7: Current Trading & Outlook
5. CURRENT TRADING & OUTLOOK • Group was trading well and in line with expectations until early March, despite supply chain challenges in China • However, now anticipating a significant drop in revenue and profitability in H2 FY20 due to prevailing demand issues • Continuing to make sales via online
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