Ultimate Products Plc · LSE:ULTP
Ultimate Products — UP Global Sourcing Holdings — FY2022 Earnings Presentation
22 slides from Ultimate Products's earnings presentation, November 2022
Slide 1: Welcome to the Home of Brands
Welcome to the Home of Brands UP Global Sourcing Holdings PLC Full Year Results FY22 2022
Slide 2: Disclaimer
Disclaimer This content of information contained in these slides and the accompanying presentation information or opinions contained in this Presentation and no responsibility or liability is comprises an institutional presentation (the Presentation) which has been prepared by accepted by any person
Slide 3: We are passionate about product / Contents
We are Salter Stock Pot Stylish cooking from hob to oven passionate about product. Our purpose is the centre of everything we do. To embed ESG into our culture, our purpose has been adapted and recommunicated to be more meaningful and demonstrate our aspirations: “We provide beautiful and more susta
Slide 4: Presenters
Introduction Highlights Strategy Financials Summary & Outlook Presenters Simon Showman Andrew Gossage Chris Dent Chief Executive Officer Managing Director Chief Financial Officer UP Global Sourcing Holdings PLC / Full Year Results FY22 03 03
Slide 5: An Introduction to Ultimate Products
Introduction Highlights Strategy Financials Summary & Outlook An Introduction to Ultimate Products We employ We sell to We sell to 300+ people 300+ retailers 45 countries Ultimate Products is the owner of a number of leading homeware brands including Salter (the UK’s oldest housewares brand, est. 17
Slide 6: What Sets Us Apart
Introduction Highlights Strategy Financials Summary & Outlook What Sets Us Apart Beldray Spot Buster Remove tough stains, spills and messes Compelling customer proposition Mix of growth and income Resilient business model Diverse customer base Ownership of the brands Strong balance sheet with curren
Slide 7: Financial Highlights
Introduction Highlights Strategy Financials Summary & Outlook Financial Highlights Revenue Adjusted EBITDA* Adjusted Profit Before Tax* £154.2m £18.8m £15.8m +13% +41% +42% FY21: £136.4m FY21: £13.3m FY21: £11.2m Adjusted Earnings Per Share* Dividend Per Share Net Bank Debt: 14.7p 7.12p Adjusted EBI
Slide 8: Operational Highlights
Introduction Highlights Strategy Financials Summary & Outlook Operational Highlights 01 02 03 04 05 06 07 Salter Petra brand Successful Major automated Fully refurbished Installation New Russell acquisition relaunched management process (robotics) cutting edge of solar panels Hobbs license fully int
Slide 9: Increase in Adjusted EBITDA
Introduction Highlights Strategy Financials Summary & Outlook Increase in Adjusted EBITDA (£’000s) 25,000 2,116 (1,181) (1,483) 20,000 5,669 338 18,750 13,291 15,000 10,000 5,000 FY21 Salter Scales GM Increase in Impact of GM% Wages Other Costs FY22 Core Turnover UP Global Sourcing Holdings PLC / Fu
Slide 10: Resilience: Higher growth with less cyclical customers
Introduction Highlights Strategy Financials Summary & Outlook Resilience: FY18 Higher growth with less Supermarkets cyclical customers Other 11% 29% By Strategic Pillar: FY18 £’000 FY22 £’000 CAGR (%) Supermarkets 9,662 51,523 52% Online Discount Retailers 45,250 48,126 2% 8% Discounters Online Chan
Slide 11: Resilience: Pivot from licence holder to brand owner
Introduction Highlights Strategy Financials Summary & Outlook Resilience: FY18 Pivot from licence holder to brand owner Own label 24% UP Brand 52% By Brand: FY18 £’000 FY22 £’000 CAGR (%) UP Brand 45,680 116,184 26% Licence Licenced 20,763 20,165 -1% 24% Own Label 21,128 17,842 -4% Total 87, 571 154
Slide 12: Strong operating margins and balance sheet
Introduction Highlights Strategy Financials Summary & Outlook Strong operating margins and balance sheet Despite the challenges of the past few years, we have grown operating margins from 7% to 12% over 5 years At the year-end we had headroom on our financing facilities of £17.8m. Our working capita
Slide 13: Expanding our online offering; Growing our international sales reach
Introduction Highlights Strategy Financials Summary & Outlook Expanding our online offering We have a proven online strategy in the UK - sales have doubled in the past 3 years We will replicate what we have accomplished with UK consumers across a wider range of European consumers Supply side issues
Slide 14: Refining our brand and product development; Investment in our systems
Introduction Highlights Strategy Financials Summary & Outlook Refining our brand and product development Online & European expansion extends product life cycles Tightened product development allows us to bring a refined number of products to market Concentration on energy-saving products such as air
Slide 15: Income Statement
Introduction Highlights Strategy Financials Summary & Outlook Income Statement 2022 2021 Change Change Group revenue has increased by 13% to £154.2m in the £’000 £’000 £’000 % period (2021: £136.4m), driven by the full year inclusion of the acquired Salter scales business (£16.3m) Revenue 154,191 13
Slide 16: Revenue Breakdown
Introduction Highlights Strategy Financials Summary & Outlook Revenue Breakdown Salter Core 2022 2021 Core Total Supermarkets are now our largest £’000 £’000 £’000 £’000 Change % Change % revenue channel Supermarkets 4,871 46,652 51,523 38,914 20% 32% We continue to diversify our customer base Disco
Slide 17: Adjusted & Statutory Profit
Introduction Highlights Strategy Financials Summary & Outlook Adjusted & Statutory Profit 2022 2021 Change Change Depreciation increased 27% following our £2.0m £’000 £’000 £’000 % investment in our head office Adjusted EBITDA 18,750 13,291 5,459 41% The finance charge has increased 62% due to the £
Slide 18: EPS & Dividend
Introduction Highlights Strategy Financials Summary & Outlook EPS & Dividend 2021 Dividend 5.0p EPS 11.1p 2022 Dividend 7.12p EPS 14.7p 0 2 4 6 8 10 12 14 16 Adjusted profit increased 46% to £12.7m Total weighted average number of shares increased 10% to 86.4m as a result of the acquisition of Salte
Slide 19: Cash Flow
Introduction Highlights Strategy Financials Summary & Outlook Cash Flow Movement in bank debt (£’000s) Opening EBITDA Tax Paid Interest Paid Investment in Investment in Deferred Dividends EBT Closing Bank Debt Working Capital PPE/Leases Consideration Bank Debt (2,345) -5,000 (850) -10,000 -15,000 (1
Slide 20: Balance Sheet
Introduction Highlights Strategy Financials Summary & Outlook Balance Sheet 2022 2021 Change Change £’000 £’000 £’000 % Investment in working capital of £13m Property, Plant and Equipment 6,369 5,719 650 11% Inventory built to more optimal levels as low Inventory 29,162 21,674 7,488 35% free stock,
Slide 21: Outlook Statement
Introduction Highlights Strategy Financials Summary & Outlook Petra Dual Air Fryer Tasty and energy efficient way to cook 03 | Summary & Outlook Outlook Statement The Board anticipates profit performance for FY23 will be in line with current market expectations. Whilst the current cost of living cri
Slide 22: UP Global Sourcing Holdings PLC contact details
UP Global Sourcing Holdings PLC Manor Mill Victoria Street Chadderton Oldham OL9 0DD +44 (0) 161 627 1400 www.upgs.com
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