Proactive Investors - Run By Investors For Investors

Ultimate Products revenues rise by a third as international sales grow

No-deal Brexit a wild card but otherwise trading has been resilient
Kitchen appliances
Kitchen appliances are a UP speciality

UP Global Sourcing Holdings PLC’s (LON:UPGS) saw its shares jump on Monday as the household brands group said its revenues have rebounded as international sales have picked up.

Sales rose by 36 % or £17.4m to £65.8mln in the half year to January, helped by the unwinding of a timing issue with one customer and the Chinese New Year coming earlier.

READ: UP Global Sourcing on the up as it raises expectations

Stripping those out, revenues rose by 21% with the share from international doubling to 40% of the total.

The group recently opened a showroom in Germany to diversify its ‘squeezed middle’ core of customers in Britain.

Ultimate Products as the group used to be known said it is assessing the implications of a no-deal Brexit and especially a slide in the pound, but otherwise underlying profits [EBITDA] are on course to beat market forecasts.

In late morning trading, shares in UP Global were 13.8% higher at 66p.

Broker ups forecasts

In a note to clients, analysts at ‘house’ broker Shore Capital pointed out that the firm issued “a strong trading update, … confirming the momentum reported in its surprise post-Christmas update (7th January) has continued.”

They added: “With EBITDA guided to be ‘above’ current market expectation, we are again raising our EBITDA forecast by 10% to £8.6m, which takes CPTP to £7.2m and EPS to 6.9p, an 11% EPS upgrade on recently raised expectations.”

The analysts concluded: “With very strong trading momentum, a broadening customer base and an attractive multi-pillared growth strategy a July FY2019 PER of 8.4x, falling to 8.0x appears very undemanding.”

 -- Adds share price, broker comment --

View full UPGS profile View Profile

UP Global Sourcing Holdings PLC Timeline

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use