Ultimate
Products plc
("Ultimate Products", "Company" or "the Group")
Share buyback programme
update
Ultimate Products, the owner of a
number of leading homeware brands including Salter (the UK's oldest
houseware brand, est.1760) and Beldray (est.1872), announces the
following updates to its share buyback programme ("Share Buyback
Programme").
Share Buyback Programme
As notified in the trading update
announced on 13 February 2024, the Board has adopted a Capital
Allocation Policy whereby the Board's intention is to maintain the
net bank debt/adjusted EBITDA ratio at around 1.0x. The Board
believes that this level of leverage is an efficient use of the
Group's balance sheet and allows for further returns of capital to
shareholders. It is the Board's intention to continue to invest in
the business enabling it to grow, whilst returning around 50% of
post-tax profits to shareholders through dividends, and to
supplement this with share buybacks pursuant to a policy of
maintaining net bank debt at a 1.0x adjusted EBITDA
ratio.
As such, the Company intends to
continue with the rolling programme of share buybacks as previously
announced on 10 May 2024 and, in line with the previously announced
schedule, has transferred the Share Buyback Programme instruction
to its joint broker, Shore Capital Stockbrokers Limited ("Shore
Capital"), to purchase shares on its behalf from 3 February 2025
for the next six months.
The Share Buyback Programme will
continue on an ongoing basis, in accordance with the terms of the
Company's general authority to purchase up to a maximum of
8,792,906 ordinary shares of 0.25p each in the Company ("Ordinary
Shares") gained at the Company's General Meeting held on 13
December 2024 ("General Meeting"). Any Ordinary Shares purchased
under the Share Buyback Programme will be cancelled and the number
of Ordinary Shares in issue reduced accordingly.
As previously announced, the Company
is completing the Share Buyback Programme in tranches. Tranche 1
was completed on 31 July 2024 whilst Tranche 2 was completed on 31
October 2024 and Tranche 3 was completed on 31 January 2025.
Tranche 4 commences from 3 February 2025 and is intended to consist
of a maximum consideration of up to £2 million to purchase Ordinary
Shares over a six-month period until 31 July 2025 ("Tranche 4").
The Company has given irrevocable and non-discretionary
instructions to Shore Capital in relation to Tranche 4. Shore
Capital will act as principal during Tranche 4 and will make
trading decisions concerning the timing of the purchases of
Ordinary Shares independently of the Company. The Company will
announce subsequent tranches of the Share Buyback Programme prior
to the initiation of each new tranche. These tranches are expected
to alternate between the Company's joint brokers, in each case
acting as principal.
The maximum price which may be paid
for an Ordinary Share pursuant to the Share Buyback Programme is an
amount equal to the higher of: (i) 105 per cent. of the average of
the middle market quotations for an Ordinary Share for the five
dealing days immediately preceding the day on which the Ordinary
Share is purchased; and (ii) the value of an Ordinary Share
calculated on the basis of the higher of the price quoted for: the
last independent trade of, and the highest current independent bid
for, any number of the Ordinary Shares on the trading venue where
the purchase is carried out. The minimum price which may be paid
for an Ordinary Share is an amount equal to its nominal
value.
It is the intention that the Share
Buyback Programme will be conducted within the pricing parameters
of the Market Abuse Regulation. However, given the limited
liquidity in the issued Ordinary Shares, the Company has agreed
that, on any trading day, a buyback of Ordinary Shares under the
Share Buyback Programme may exceed 25 per cent. but remain below 50
per cent. of the average daily trading volume in the Ordinary
Shares in the 20 trading days preceding the date on which a
buy-back of Ordinary Shares is carried out. Accordingly, the
Company may not benefit from the exemption contained in the
Regulations.
Any market repurchase of Ordinary
Shares will be announced no later than 7:30am on the business day
following the calendar day on which the repurchase
occurred.
Details of the authority granted at
the General Meeting can be found on the Company's website
under: https://upplc.com/investor-relations/annual-meeting/
For more information, please
contact:
Ultimate Products +44 (0) 161 627
1400
Andrew Gossage, CEO
Chris Dent, CFO
Shore Capital +44 (0) 20 7408
4090
Mark Percy
Malachy McEntyre
David Coaten
Harry Davies-Ball
Isobel Jones
Cavendish Capital Markets Limited +
44 (0)20 7220 0500
Carl Holmes (Corporate
Finance)
Matt Goode (Corporate
Finance)
Charlie Combe (ECM)
Sodali & Co +44 (0) 207 250
1446
Rob Greening
Sam Austrums
Oliver Banks
Notes to Editors
Ultimate Products is the owner of a
number of leading homeware brands including Salter (the UK's oldest
houseware brand, established in 1760) and Beldray (a laundry, floor
care, heating and cooling brand that was established in 1872).
According to its market research, nearly 80% of UK households own
at least one of the Group's products.
Ultimate Products sells to over 300
retailers across 38 countries, and specialises in five product
categories: Small Domestic Appliances; Housewares; Laundry; Audio;
and Heating and Cooling. Other brands include Progress (cookware
and bakeware), Kleeneze (laundry and floorcare), Petra (small
domestic appliances) and Intempo (audio).
The Group's products are sold to a
broad cross-section of both large national and international
multi-channel retailers as well as smaller national retail chains,
incorporating discount retailers, supermarkets, general retailers
and online retailers.
Founded in 1997, Ultimate Products
employs over 370 staff, a significant number of whom have joined
via the Group's graduate development scheme, and is headquartered
in Oldham, Greater Manchester, where it has design, sales,
marketing, buying, quality assurance, support functions and
warehouse facilities across two sites. Manor Mill, the Group's head
office, includes a spectacular 20,000 sq ft showroom that showcases
each of its brands. In addition, the Group has an office and
showroom in Guangzhou, China and in Paris, France.
Please note that Ultimate Products
is not the owner of Russell Hobbs. The company currently has
licence agreements in place granting it an exclusive licence to use
the "Russell Hobbs" trademark for cookware and laundry (NB this
does not include Russell Hobbs electrical appliances).
For further information, please
visit www.upplc.com.
