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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 --

Quick facts: UP Global Sourcing Holdings PLC

Price: 85.1 GBX

LSE:UPGS
Market: LSE
Market Cap: £69.93 m
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