Ultimate Products Anticipates Matching Market Views and Announces Share Buybacks
London, UK – Ultimate Products, a leading mass-market consumer goods company based in the UK, revealed on Tuesday that it expects its fiscal-year profits to align with current market predictions. The company also disclosed its plans to initiate share buybacks that are in line with a new capital allocation policy.
During the half-year period ended January 31, the company’s revenue experienced a decline of 4% to £84.0 million. Ultimate Products attributed this decrease to issues related to overstocking which hindered orders from supermarkets. However, the company is confident that this situation will soon improve as retailers report having normalized stock positions after the peak Christmas trading period.
Operating margins, on the other hand, saw an improvement due to the successful implementation of automation across various business functions. Additionally, lower freight rates contributed to a better financial performance during this period.
For the full fiscal year, Ultimate Products anticipates that it will achieve performance levels in line with current market forecasts. Specifically, the company projects adjusted earnings before interest, taxes, depreciation, and amortization to reach £21.6 million. As part of its commitment to shareholders, Ultimate Products plans to distribute approximately 50% of after-tax profits through dividends and supplement this with share buybacks. The company will release further details about the formal buyback scheme in due course.
Ultimate Products’ ability to navigate challenges in the consumer goods industry and its strategic approach to capital allocation highlight its commitment to delivering value to its loyal shareholders. As the company sets its sights on the future, it remains optimistic about its ability to meet market expectations and provide attractive returns to its investors.
Analyst comment
Positive news. Ultimate Products expects its fiscal-year profits to align with market predictions. It plans to initiate share buybacks, reflecting a strategic approach to capital allocation. The company’s confidence in improving sales post-Christmas period and improved operating margins indicate positive growth. The market is expected to respond favorably to these developments.
