Share buyback plans announced at UK’s oldest homewares brand parent

Oldham-based Ultimate Products, the owner of the UK’s oldest homeware brand, Salter (founded 1760), among several other brands in the sector, has announced plans for a share buyback of up to 10% of the company’s value to the London Stock Exchange.

The announcement comes as Ultimate announced HY results to January 31 which showed that revenue had dropped four per cent to £84.2m, while adjusted EBITDA was stable at £11.3m and statutory pre-tax profit up two per cent to £9.5m. The company highlighted sales of the ubiquitous air fryer as a recent economic highlight, and said that trading was in line with market expectations.

Authority for a buyback was previously granted at Ultimate’s December 2023 AGM, although it has thus far not been exercised.

Ultimate’s directors claimed that the proposed buy-back authority would be an optimum and efficient use of the company’s excess cash, which would alos enhance share earnings.

Andrew Gossage, chief executive of Ultimate Products, said: “This has been another period of resilient performance for Ultimate Products. Macro conditions remain challenging, but our strategy of providing beautiful products at mass-market prices to UK and European households is continuing to stand us in good stead.

“We are now seeing the gradual resumption of normal ordering patterns from our customers after the overstocking issues that were brought about by the pandemic, and we have a range of initiatives underway to improve operational efficiencies and deepen our customer relationships. As a result, we continue to trade in line with market expectations.”