(Alliance News) - Ultimate Products PLC on Tuesday reported a higher profit amid lower costs as it announced a higher interim dividend and a mulled share buyback programme.

The Manchester-based owner of homeware brands, including Salter and Beldray said interim revenue fell 3.9% to GBP84.2 million in the six months to January 31, from GBP87.6 million a year prior.

Pretax profit rose 2.5% to GBP9.5 million from GBP9.3 million.

This was on the back of contracting cost of sales, which decreased 6.3% to GBP61.8 million from GBP66.0 million.

The company will pay out an interim dividend of 2.45p at the end of June, up 0.8% from 2.43p.

Further, Ultimate Products is mulling a share buyback of up to 8.9 million shares, about 10% of its issued share capital as of Monday, for which it will hold a general meeting on May 2.

Looking ahead, Ultimate Products says it continues to trade in line with market expectations for financial 2024 ending July 31. Market expectations anticipate revenue of GBP166.7 million, up 0.2% from GBP166.3 million a year prior, adjusted earnings before interest, tax, depreciation and amortisation of GBP21.5 million, up 6.4% from GBP20.2 million, and adjusted earnings per share of 15.6p, 1.3% higher than 15.4p in financial 2023.

Chief Executive Officer Andrew Gossage said: "Macro conditions remain challenging, but our strategy of providing beautiful products at mass-market prices to UK and European households is continuing to stand us in good stead. We are now seeing the gradual resumption of normal ordering patterns from our customers after the overstocking issues that were brought about by the pandemic, and we have a range of initiatives underway to improve operational efficiencies and deepen our customer relationships."

Ultimate Products shares were flat at 149.75 pence each on Tuesday morning in London.

By Tom Budszus, Alliance News slot editor

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.