Manchester homewares brand Ultimate Products says it is outperforming a struggling general merchandise market as the Salter and Beldray owner prepares for a major leadership handover.
The Chadderton-headquartered group held revenues steady at £34.8m during its third quarter despite what it described as a “challenging backdrop” for UK consumer spending, with sales of its own brands rising 9%.
The update lands just a day after Ultimate Products revealed Princes Group boss Simon Harrison will become its new chief executive, succeeding long-serving CEO Andrew Gossage after more than two decades in senior leadership roles at the business.
The AIM-listed company, whose brands are stocked by more than 300 retailers globally, said the latest figures reflected continued weakness across the wider general merchandise sector alongside a deliberate scaling back of lower-margin third-party clearance sales.
But the business said its strategy of focusing more heavily on proprietary brands was continuing to drive momentum, with branded sales overall rising 3% during the quarter.
“Against what remains a challenging backdrop, we are pleased that overall revenues were stable in the quarter, which was slightly ahead of our expectations,” said Gossage.
“Our focus continues to be on our self-help strategy to optimise the business for future growth. I am confident that our refreshed and invigorated commercial function is well placed to grow market share, and that our continued focus on operational productivity in all areas of the business will underpin our future success.”
Ultimate Products said it now expects full-year sales to come in slightly ahead of market expectations, despite ongoing pressure across the UK retail market and wider geopolitical uncertainty.
The company also pointed to continued investment in automation and operational productivity as it positions itself for its “next chapter” under incoming CEO Harrison.
Harrison, currently CEO of Princes Group, will join the business as CEO designate in September before formally taking over in October.
Ultimate Products described him as a seasoned FMCG executive with more than 25 years’ experience across sales, operations, brand and trade marketing, including senior roles at Coca-Cola European Partners.
Announcing the appointment yesterday, chair Christine Adshead said Harrison brings “outstanding leadership qualities, strong operating discipline and considerable commercial experience”.
She also paid tribute to outgoing CEO Gossage, crediting him with helping transform Ultimate Products from a sourcing business into a major branded homewares group while overseeing investment in ecommerce, automation and the company’s graduate development scheme.
Founded in 1997, Ultimate Products employs more than 300 people across its Greater Manchester operations and owns a stable of heritage consumer brands including Salter, Beldray, Kleeneze, Petra and Intempo.
