LONDON (ShareCast) - (Sharecast News) - Shares in Ultimate Products plummeted on Wednesday, after the homeware brands specialist warned on profits.
The AIM-listed owner of Salter, Kleeneze and Beldray, among others, said that while sales were up 3% in the four months to May end, demand had been strongest for cheaper products, weighing on the gross margin.

A number of retail orders had also been deferred.

As a result, earnings before interest, tax, depreciation and amortisation in the four-month period were flat at £3.6m, putting the firm on track to miss full-year targets.

Ultimate Products now expects revenues for the year to July to be down around 4% on 2024's £155.5m. EBITDA is expected to be around £12.5m, lower than the £18m posted in 2024 and below consensus for £14.3m.

The Oldham-based company, which employs more than 370 people, also warned that 2026 full-year revenues would likely be down year-on-year, after the current order book indicated a "slow start to the year".

As at 1030 BST, the stock had tumbled 30% to 51.66p.

Andrew Gossage, chief executive, said: "This remains a highly challenging trading environment, given the wider macroeconomic uncertainty and weak consumer sentiment, and unfortunately our current performance reflects that.

"However, there are also a number of investments which we are making within our sales function to enhance its systems and processes and thus improve future performance.

"This is a clear priority for us, with a range of initiatives already underway.

"We remain as confident as ever in our long-term prospects."

Canaccord Genuity left its 'buy' rating unchanged, but lowered its price target to 80p from 130p.

It said: "Heightened macro uncertainty following increased tariffs is causing customer caution and lower forward orders, which prompts us to take a prudent approach to full-year 2026 forecasts.

"While the consumer backdrop remains fragile and is impacting Ultimate Product's near-term performance, management clearly has a plan to improve its medium-term sales performance."

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE