Consumer goods giant Ultimate Products, owner of Britain’s oldest homeware brand Salter and licensee of certain Russell Hobbs items, has reported a fall in profits, blaming soaring shipping costs and reduced consumer demand. The London-listed, Oldham-based group’s adjusted pre-tax profit for the year ending July 30, 2024, was £14.5m, down from £16.8m the previous year.
Revenue also fell to £157m for the year, down from £166m, which the company attributed to exceptionally high demand for airfryers the previous year. Adjusted EBITDA fell by 11% to £18m, down from £20.2m, as reported by City AM.
The company stated that these reductions were in line with expectations, blaming them on a “significant increase in shipping rates” following attacks on vessels in the Red Sea area, as well as weakened consumer demand. CEO Andrew Gossage admitted earlier in the year that overstocking issues had “held back ordering” at many of the company’s retail partners, especially European supermarkets.
Despite this, Ultimate Products stated it was “cautiously optimistic” about the future, reporting that supply chains were beginning to “adapt to a new normal”.
Chief executive Daniel Gossage said: “Our FY24 performance was not without its challenges but I am pleased to report that many of the temporary headwinds are now easing, as reflected in a healthy FY25 order book.”
He added: “As we look ahead to FY25 with cautious optimism, we are confident in the proven resilience of our business model and the ongoing demand for our fantastic range of leading homeware brands.”
The group, which owns the Beldray brand and sells Russell Hobbs cookware and laundry products under licence, joined the London Stock Exchange in 2017 after an initial public offering (IPO) that valued it at more than £100 million.
Like this story? Why not sign up to get the latest business news straight to your inbox.