Shares in Ultimate Products (LON:ULTP) ticked higher after the homeware brands owner’s Q3 update revealed revenue is tracking ahead of expectations. This positive news prompted analysts to upgrade their FY26 revenue estimates.
Today’s update is encouraging in that it marks the end of quarterly revenue declines since the air fryer boom faded. It is a small step in the right direction for the Oldham-based company behind leading homeware brands including Salter and Beldray.
Sales stabilise
Ultimate Products generated sales of £34.8 million in the third quarter to April 2026. That was flat year-on-year and reflected continued subdued consumer demand for general merchandise, as well as the planned reduction in non-core third-party clearance sales.
Investors were heartened to hear that sales of the group’s proprietary brands rose 9% in the period to £31.5 million, with overall branded sales up 3%.
Marginally ahead
While the macroeconomic backdrop remains tough, Ultimate Products now expects Q3’s flat trading trends to persist throughout the balance of the year. This means that, while the general merchandise market remains soft, particularly in the UK, group sales should be marginally ahead of market expectations.
Meanwhile, profitability remains in line with consensus, reflecting the change in the sales mix towards higher-margin products.
Sticking with its 85p target price for Ultimate Products, Cavendish now assumes H2 sales will be flat rather than down 5%. Consequently, it has upgraded its FY26 revenue estimate by £3.5 million to £145.1 million.
The broker forecasts a fall in adjusted pre-tax profits from £8.8 million to £6.5 million for FY26. For FY27 and FY28, Cavendish sees profits recovering to £8.1 million and £8.9 million respectively.
CEO Andrew Gossage commented: ‘Against what remains a challenging backdrop, we are pleased that overall revenues were stable in the quarter, which was slightly ahead of our expectations. Our focus continues to be on our self-help strategy to optimise the business for future growth.’
Poached from Princes
Earlier this week, Ultimate Products announced the surprise appointment of Simon Harrison as its new CEO.
Harrison has been poached from food and drink company Princes (LON:PRN) and replaces Gossage on 26 October 2026. After a short sabbatical, Gossage will continue as a non-executive director from 1 May 2027.
It’s been a tough five years or so for Ultimate Products’ shareholders. Over this period, they have seen the stock plunge almost 80% on a series of earnings downgrades.
But the business, which aims to provide ‘beautiful products’ for every home, is nine months through an operational reboot. And the benefits should become evident from the final quarter of 2026.
Investors will be hoping Harrison, who has 25 years of fast moving consumer goods (FMCG) commercial and leadership experience, can return Ultimate Products to growth.
Read the press release here: https://investors.upplc.com/
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