Ultimate Products Plc · LSE:ULTP
Ultimate Products — UP Global Sourcing Holdings — FY2017 Earnings Presentation
28 slides from Ultimate Products's earnings presentation, November 2017
Slide 1: FY17 Full Year Results
17 FY LTS S U RE AR L YE L FU
Slide 2: Disclaimer
DISCLAIMER UP Global Sourcing Holdings plc This content of information contained in these slides and the accompa- responsibility or liability is accepted by any person for such information nying presentation comprises an institutional presentation (the or opinions. No person has been authorised to g
Slide 3: Agenda
AGENDA UP Global Sourcing Holdings plc Introduction Simon Showman FY17 Financial Review Graham Screawn Outlook Andrew Gossage Strategy Simon Showman Q Questions & Answers A Progress Illuminated Kettle Contemporary Design. Sophisticated Look. 3
Slide 4: Who We Are
INTRODUCTION UP Global Sourcing Holdings plc Who We Are EST. IN EMPLOY SELL TO 1997 IN MANCHESTER 230 PEOPLE ACROSS 300+ RETAILERS ACROSS THE GROUP 38 COUNTRIES • Established in Manchester in 1997 • A brands house of consumer goods for the home • Mass market and value led • Six product categories: A
Slide 5: FY17 Highlights
INTRODUCTION UP Global Sourcing Holdings plc FY17 Highlights REVENUE UNDERLYING PBT £110m £10.7m +39.1% +42.0% (FY16: £79.0 m) (FY16: £7.5 m) • Total revenue increased 39.1% to £110.0 m (FY16: £79.0 m) • Underlying EBITDA increased 39.9% to £11.5 m (FY16: £8.2 m) • Underlying PBT increased 42.0% to
Slide 6: Operational Highlights
INTRODUCTION UP Global Sourcing Holdings plc Operational Highlights Board substantially strengthened, Re-launch of Progress, including appointment of Jim McCarthy as Chairman the longstanding British heritage brand New distribution facility opened Recruitment of 100th graduate at Heron Mill to the G
Slide 7: FY17 Financial Review
UP Global Sourcing Holdings plc FY17 Financial Review Graham Screawn 7
Slide 8: Income Statement
FY17 FINANCIAL REVIEW UP Global Sourcing Holdings plc 12M JUL 12M JUL 12M JUL PERCENT % Income Statement 1) 2015 £’m 2) 2016 £’m 2) 2017 £’m INCREASE Turnover 64.1 79.0 110.0 +39.1% • Gross profit restated to include transport & Gross Profit 15.2 18.9 24.6 +29.9% distribution and sales commissions p
Slide 9: Profit After Tax Bridge
FY17 FINANCIAL REVIEW UP Global Sourcing Holdings plc Profit After Tax Bridge +7,401 (1,748) (2,476) (666) 8,406 (2,831) +997 5,895 5,575 4,898 Profit after Exceptional Underlying Volume Margin mix Overheads Underlying Underlying Exceptional Profit after tax FY16 items after profit after growth and
Slide 10: Segmental Analysis: Geography and Strategic Pillar
FY17 FINANCIAL REVIEW UP Global Sourcing Holdings plc Segmental Analysis Geographical & Strategic Pillar 12M JUL 12M JUL 12M JUL PERCENT % 2015 £’m 2016 £’m 2017 £’m INCREASE • Significant growth in core UK and European territories driven by Geographical Analysis discount retailers UK 47.7 58.5 79.6
Slide 11: Segmental Analysis: Brand
FY17 FINANCIAL REVIEW UP Global Sourcing Holdings plc Segmental Analysis continued... Brand 12M JUL 12M JUL 12M JUL PERCENT % 2015 £’m 2016 £’m 2017 £’m INCREASE • Premier brands continue to lead the way and accounted for 60% of revenue in FY17 Analysis by Brand Beldray 14.3 19.1 30.8 +61.1% Salter
Slide 12: Segmental Analysis: Major Product Areas
FY17 FINANCIAL REVIEW UP Global Sourcing Holdings plc Segmental Analysis continued... 12M JUL 2015 £’m 12M JUL 2016 £’m 12M JUL 2017 £’m PERCENT % INCREASE Major Product Areas Analysis by Major Products • SDA, Audio, Housewares and Laundry the Small Domestic Appliances 13.2 20.8 24.6 +18.3% largest
Slide 13: Balance Sheet
FY17 FINANCIAL REVIEW UP Global Sourcing Holdings plc 31 JUL 31 JUL 31 JUL 2015 £’m 2016 £’m 2017 £’m Balance Sheet Non-current Assets Tangible Assets 0.6 1.0 1.7 • Net assets boosted by one off corporation Deferred Tax 0.3 0.2 0.2 tax credit of £2.1 m relating to the IPO 0.9 1.2 1.9 • Increase in n
Slide 14: Cash Flow
FY17 FINANCIAL REVIEW UP Global Sourcing Holdings plc Cash Flow 15M JUL 2015 £’m 12M JUL 2016 £’m 12M JUL 2017 £’m Net Cash from Operations • Tax credit on IPO reduced FY17 tax EBITDA 5.5 7.0 8.3 payments by £0.8 m Share Based Payment Expense 0.0 0.0 0.1 Working Capital Movements 1.7 • Positive work
Slide 15: FY17 Financial Review
FY17 FINANCIAL REVIEW UP Global Sourcing Holdings plc 15
Slide 16: Outlook
UP Global Sourcing Holdings plc Outlook Andrew Gossage 16
Slide 17: Outlook
OUTLOOK UP Global Sourcing Holdings plc • Overall trading environment for general merchandise has become tougher • Wage deflation is putting pressure on consumers’ discretionary spending • Cost price increases in the wake of last year’s sterling devaluation • Retailers exercising caution with regard
Slide 18: Strategy
UP Global Sourcing Holdings plc Strategy Simon Showman 18
Slide 19: Strategy
STRATEGY UP Global Sourcing Holdings plc 1 Discount 2 UK Supermarkets 3 Online Channels 4 Germany & International Beldray 3000 W MAX Steam Pro Effortlessly Glides Through Creases 19
Slide 20: Appendices
UP Global Sourcing Holdings plc Appendices 20
Slide 21: Key Brands: Beldray
KEY BRANDS UP Global Sourcing Holdings plc Laundry Bathroom Garment Care Beldray (originally ‘Bradley and Co. Ltd) is our trademark brand, a brand that since its beginnings in 1872 has become prominent in cleaning and safety equipment. The first manufacturer of steel ironing tables in the UK and inv
Slide 22: Key Brands: Intempo
KEY BRANDS UP Global Sourcing Holdings plc At Intempo, we take the latest technology and create audio products that we believe look Headphones Bluetooth Party Speakers great and sound even better. Our exciting range has been designed to support many applications, including iPad, iPhone and other dev
Slide 23: Key Brands: Salter
KEY BRANDS UP Global Sourcing Holdings plc Blenders Air Fryers Grills For over 250 years, Salter has proudly created and manufactured great products to enhance your lifestyle. A brand synonymous with precision and quality, it is a familiar household name with a proud heritage that continues to devel
Slide 24: Key Brands: Russell Hobbs
KEY BRANDS UP Global Sourcing Holdings plc Loved by the Great British public for over half a century, Russell Hobbs is a household brand with a strong heritage and is famous for its stylish and high quality products. Pans Ovenware Vitreous Enamel Licensed since 2011 until 2020 for a wide variety of
Slide 25: Key Brands: Progress
KEY BRANDS UP Global Sourcing Holdings plc Established in 1931 in Burnley, Lancashire, Progress has 86 years of heritage as a Northern brand, renowned for great quality, great value products. To this day, it remains a classic brand with a 21st century feel, offering everything a kitchen could need.
Slide 26: Board of Directors
BOARD OF DIRECTORS UP Global Sourcing Holdings plc James McCarthy (61) Simon Showman (44) Andrew Gossage (46) Graham Screawn (50) Independent Chief Executive Managing Director Chief Financial Officer Non-Executive Officer Chairman James has over 40 years’ experience in the Simon began his career wor
Slide 27: Board of Directors
BOARD OF DIRECTORS UP Global Sourcing Holdings plc Alan Rigby (61) Robbie Bell (44) Barry Franks (71) Senior Independent Independent Non-Executive Non-Executive Non-Executive Director Director Director Alan has spent the majority of his working Robbie was recently appointed as Chief Finance Barry Fr
Slide 28: Slide 28
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