UP Global boosts dividend after strong year
By Sean Farrell
Date: Tuesday 02 Nov 2021
(Sharecast News) - UP Global Sourcing increased its annual dividend by 27% as the homewares company reported higher profit and an upbeat outlook despite supply chain disruption.
Pretax profit rose 13.7% to £9.5m in the year to the end of July from a year earlier as revenue increased 17.9% to £136.4m. Underlying pretax profit rose 36.6% to £11.2m, the company, better known as Ultimate Products, said.
UP increased its final dividend to 3.33p a share from 2.795p a year earlier, taking the annual payout to 5.02p compared with 3.955p for 2020.
The owner of brands such as Kleeneze and Beldray said revenue rose across its business despite operational and shipping problems caused by Covid-19. The gross margin narrowed to 22.2% from 23% because of increased shipping costs.
UP said it expected global shipping to stay disrupted until after Chinese New Year in February but current trading is in line with expectations and growth is forecast for 2022. The company bought the Salter brand for £32m in July and said on Tuesday that Salter would add significantly to earnings in the current year.
"The board also believes that the Covid-19 pandemic has led to long-term changes in consumer attitudes and behaviour, including more home working, more home cooking, a greater emphasis on hygiene and cleanliness, more online shopping and a more considered approach to spending," the company said. "As Ultimate Products' brands are largely focused on the home, the group is well placed to take advantage of these trends."
UP shares rose 7.2% to 185.5p at 09:55 GMT.
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