Ultimate Products profits fall as air fryer sales slump

(Sharecast News) - Ultimate Products reported a decline in annual profit on Tuesday, as softer consumer demand and elevated shipping costs weighed on margins, though the owner of Salter and Beldray said trading remained in line with expectations and reaffirmed its confidence in its longer-term prospects. For the year ended 31 July, revenue fell 3% to £150.1m from £155.5m, reflecting a 32% decline in air-fryer sales and a 60% drop in third-party close-out sales, partly offset by a 6% rise in other core product lines.

Gross profit slipped 14% to £34.8m, while gross margin narrowed to 23.2% from 26.0%, impacted by £3.1m in additional shipping costs and a change in sales mix.

Adjusted EBITDA fell 31% to £12.5m, while adjusted pre-tax profit declined 40% to £8.7m.

Statutory profit before tax dropped 44% to £8.0m, with earnings per share also down 44% to 6.8p.

The full-year dividend was cut to 3.70p per share from 7.38p, in line with the group's policy of returning around half of post-tax profits to shareholders.

Operating cash generation remained strong at £10.3m, representing 82% cash conversion, as the company ended the year with a net bank debt-to-adjusted EBITDA ratio of 1.1 times, slightly above its 1.0 times target.

"The 2025 financial year was a challenging year for consumer-facing businesses, with ongoing macroeconomic pressures, elevated shipping costs and weak consumer demand weighing on performance," said chief executive Andrew Gossage.

"This included an anticipated reduction in air-fryer and third-party close-out sales, which together accounted for a large portion of the decline in revenue.

"Notwithstanding the challenges faced, we are pleased that our UP brands continued to deliver growth, reflecting the effectiveness of our branded strategy and the commitment of our teams across the business."

He added that the firm also made meaningful progress in "strengthening the foundations of the group", including the implementation of a new product information management system, the promotion of five senior leaders into C-suite roles and a programme of enhancements to the sales function that was already driving positive change.

"Combined with the growing appeal of our brands and the scale of opportunity we see in the UK and internationally, we remain as confident as ever in our medium-to-long term prospects."

The group said its branded portfolio, which accounts for 80% of sales, grew 4% during the year, supported by a strong performance from Beldray, where sales rose 11% following its consumer relaunch in March.

It also cited product development momentum across its brands, including new launches such as the Salter Slushie Maker and Beldray All-in-One Floor Cleaner, recently named a Which? Best Buy.

Ultimate Products confirmed that current trading was in line with expectations and that it continued to invest in operational improvements to strengthen productivity and sales capability.

The board also said it intended to move its listing from the London Stock Exchange's Main Market to AIM, subject to shareholder approval at the 12 December annual meeting.

At 1007 GMT, shares in Ultimate Products were up 4.95% at 62.97p.

Reporting by Josh White for Sharecast.com.