Branded homeware products company UP Global Sourcing (UPGS) said it expected to perform in line with expectations for the full year after reporting 13.7% growth in revenues to £85.7 million for the first half to the end of January.
Analysts are forecasting 20% growth in full year revenues to £162 million according to Refinitiv data.
Despite an upbeat tone to the trading statement, the shares dropped 3.6% to 176.9p as markets fell 2% on Russia-Ukraine conflict fears.
SUPPLY CHAIN IMPROVEMENT
The company, better known as Ultimate Products, provided some welcome news for investors as it noted that supply chain challenges had shown signs of improvement recently. Bottlenecks and shortages have been one of the leading causes of rising global inflation.
After purchasing the UK’s oldest houseware brand Salter in July, the 262 year-old business appears to be performing in line with forecasts and is expected to ‘significantly’ enhance group earnings in the current fiscal year to 31 July 2022.
Supermarkets are on track to become the firm’s largest distribution channel for the full year, overtaking the discounters' channel.
More capacity recently came on stream at the company’s Netherlands distribution centre, boosting the roll-out of its online business which is expected to grow to 30% of total sales in the medium-term.
The company expects to release its audited half year results on 29 April.
