Ultimate Products Plc · LSE:ULTP
Ultimate Products — UP Global Sourcing Holdings — FY2021 Earnings Presentation
30 slides from Ultimate Products's earnings presentation, November 2021
Slide 1: Welcome to the Home of Brands and Sourcing - Full Year Results 2021
LC O M E W E TO T H E ME O F HO NDS B R A A LS O U R C ING Y H O 21 L DIN G S P LC U P R LT O I D M U ATE CTS LO B ULT S F UP G R R E S EA FULL Y
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: Full Year Results FY21 Agenda
FULL YEAR RESULTS FY 21 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. In Employ Sell To 1997 300+ 300+ In Manchester People Across Retailers Across The Group 38 Countries INTRODUCTION / UP Global Sourcing Holdings plc • Established in Oldham, Greater Manchester in 1997 • A brands house of consumer goods for the home • Mass market and value led • Five m
Slide 5: FY Summary
KLEENEZE Home Solutions FY 21 SUMMARY REVENUE UNDERLYING PBT £136.4 m £11.2 m + 17.9 % + 36.6 % (FY 20 : £115.7 m) (FY 20 : £8.2 m) • Total revenue increased 17.9 % to £136.4 m (FY 20 : £115.7 m) INTRODUCTION / UP Global Sourcing Holdings plc • Underlying EBITDA increased 28.3 % to £13.3 m (FY 20 :
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: FY21 Financial Review
BELDRAY 150 Year Anniversary Collection FY 21 FY 21 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
12M JUL 12M JUL 12M JUL % 2019* £’m 2020 £’m 2021 £’m CHANGE INCOME STATEMENT Revenue 123.3 115.7 136.4 +17.9 % • Revenue increased by 17.9 % to £136.4 m Gross Profit 27.2 26.6 30.2 +13.7 % with growth across all strategic pillars % 22.1 % 23.0 % 22.2 % -0.8 % Overheads • Gross margin decreased to 22
Slide 9: Underlying Profit After Tax Bridge
UNDERLYING PROFIT AFTER TAX BRIDGE +4,756 (2,486) (879) FY 21 FINANCIAL REVIEW / UP Global Sourcing Holdings plc + 1,361 +235 (764) 8,727 6,504 Underlying Increase in Freight cost Margin mitigation Increase in Reduction in Increases in Underlying profit after revenue increase overheads & interest un
Slide 10: Segmental Analysis: Geographical and Strategic Pillar
12M JUL 12M JUL 12M JUL % 2019 £’m 2020 £’m 2021 £’m CHANGE SEGMENTAL ANALYSIS Geographical Analysis Geographical & Strategic Pillar UK 74.8 74.0 92.9 +25.5 % • Revenue increased by £20.7 m (+17.9 %) Germany 11.8 11.0 13.9 +26.8 % despite a challenging commercial Rest of Europe 34.7 29.7 27.7 -6.7 %
Slide 11: Segmental Analysis: Brand
SEGMENTAL ANALYSIS 12M JUL 2019 £’m 12M JUL 2020 £’m 12M JUL 2021 £’m % CHANGE CONTINUED... Brand Analysis of Revenue by Brand • Premier brands grew by £22.0 m (27.1 %), Beldray 32.3 32.8 42.4 +29.3 % out performing the Group’s performance as Salter 20.9 25.8 28.4 +9.9 % a whole Russell Hobbs (Licen
Slide 12: Segmental Analysis: Major Product Areas
12M JUL 12M JUL 12M JUL % 2019 £’m 2020 £’m 2021 £’m CHANGE SEGMENTAL ANALYSIS CONTINUED... Analysis of Revenue by Major Products Major Product Areas Small Domestic Appliances 34.1 38.7 48.7 +26.0 % • Strong growth in each of Small Domestic Housewares 26.8 28.2 35.9 +27.3 % Appliances, Housewares an
Slide 13: Balance Sheet
31 JUL 31 JUL 31 JUL 2019* £’m 2020 £’m 2021 £’m Non-current Assets Tangible Assets 5.0 5.1 5.7 BALANCE SHEET Intangible Assets 0.1 0.1 27.2 Goodwill - - 9.7 Deferred Tax Asset 0.1 0.1 - • The Salter acquisition brings on to the balance sheet : the brand - £27.0 m, associated deferred tax liability
Slide 14: Cash Flow
12M JUL 12M JUL 12M JUL 2019* £’m 2020 £’m 2021 £’m CASH FLOW Net Cash from Operations EBITDA 10.5 10.6 11.6 Other Non-cash items 0.3 0.6 (0.4) • Salter acquisition cash flows include: £’m Working Capital Movements (4.9) 6.9 0.6 Tax Paid (1.3) (2.3) (2.6) Initial acquisition consideration (30.6) Fees
Slide 15: Strategy & Outlook
STRATEGY & OUTLOOK STRATEGY & OUTLOOK / UP Global Sourcing Holdings plc 1 International 2 Supermarkets 3 Online Channels 4 Discount Retailers SALTER Smart Scale 14
Slide 16: Developments in the Consumer Market
STRATEGY & OUTLOOK DEVELOPMENTS IN THE CONSUMER MARKET 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 STRATEGY & OUTLOOK / UP Global Sourcing Holdings plc Home
Slide 17: Outlook
STRATEGY & OUTLOOK • Shipping availability and cost plc continues to present challenges and Holdingsplc the Board expects that global shipping SourcingHoldings will remain disrupted until after Chinese New Year (February 2022) GlobalSourcing • Nonetheless current trading remains in line with expecta
Slide 18: 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 19: In the Community
IN THE COMMUNITY ULTIMATE PRODUCTS STRATEGY & OUTLOOK / UP Global Sourcing Holdings plc 18
Slide 20: Questions & Answers
QUESTIONS & ANSWERS / UP Global Sourcing Holdings plc 19 Q A QUESTION & ANSWERS
Slide 21: 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 20
Slide 22: 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 23: 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 Customers KEY BRANDS / UP Global Sourcing Holdings plc Ovens Dinnerware Baking For over 250 years, Salter has proudly cre
Slide 24: 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 25: 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 26: 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 27: 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 28: Board of Directors
Jim McCarthy Simon Showman Andrew Gossage Graham Screawn Alan Rigby Independent Chief Executive Officer Managing Director Chief Financial Officer Senior Independent Non-Executive Chairman Non-Executive Director BOARD OF DIRECTORS / UP Global Sourcing Holdings plc James has over 40 years’ experience
Slide 29: Board of Directors
Robbie Bell Jill Easterbrook Christine Adshead Independent Independent Independent Non-Executive Director Non-Executive Director Non-Executive Director BOARD OF DIRECTORS / UP Global Sourcing Holdings plc Robbie is Chief Financial Officer of Holland Jill Easterbrook was previously the CEO of Christi
Slide 30: Ultimate Products contact details
20 — UK Ultimate Products Manor Mill Victoria Street Manchester, OL9 ODD Tel: +(44) 161 627 1400 Guangzhou Ultimate Products Room 401, 4th Floor Peace Business Center (Heping], 898 Guangzhou, Dadao Nan, Guangzhou Tel: + (86) 2083 900 900 Cologne Ultimate Products Edmund-Rumpler-StraBe § 51149 Kéln G
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