Ultimate Products warns on profit as first-half revenue slips 29%
Source - SMW
Consumer goods group Ultimate Products said first-half revenue slid 29% amid 'ongoing challenges' in the general merchandise retail market and caution from customers placing orders.
Underlying Ebitda was now expected to be in the range of £6.0m to £7.0m, which was below current market expectations, the company said.
Unaudited group revenues for the six months through January fell to £48.4m, down from £68.1m in the previous corresponding period.
There was also one-off reduction in revenue of around £4.0m-to-£5.0m resulting from a move from free-on-board to landed arrangements with a key European customer.
'The board's previous expectation was for revenue growth in the second half, as it anticipated that order placing by retailers would normalise post-Christmas in response to cleaner inventory positions,' Ultimate Products said.
'However, while the group is pleased with the strength of its pipeline of new business opportunities, many of the resulting orders are now falling in the 2019 financial year, rather than the second half of 2018.'
'This is due to specific circumstances that are particular to each customer, rather than any one underlying trend.'