Up Global Share News (UPGS)

(Sharecast News) - Consumer goods company UP Global Sourcing, trading as Ultimate Products, updated the market on its first half on Monday, reporting a 2.8% improvement in unaudited group revenues to ?67.7m.
The London-listed firm noted that it renewed its exclusive trademark licence agreement for the 'Russell Hobbs' trademark in the UK and European Union until March 2023 during the six months period ended 31 January.

It said the agreement spanned a range of non-electrical kitchen and laundry products, but did not include Russell Hobbs electrical appliances.

The company also successfully extended its banking facilities to 2024, with funding headroom as at 31 January standing at ?13.2m, up from ?10.1m at the end of July.

Ultimate Products said it agreed terms on a 10-year lease extension at Manor Mill, its head office and second distribution centre in Oldham, Greater Manchester, in anticipation of planned investment in the site.

"Given that the majority of the group's manufacturing is based in China, the board is closely monitoring developments with the coronavirus outbreak there," the board said in its statement.

"The extension of the Chinese New Year holiday by nine days to today - 10 February 0 in the group's main manufacturing areas is expected to cause production delays."

It said that, as further information became available, it would continue to evaluate any short or long-term impact on the group's business, and would take "all necessary action" to mitigate any disruption.

"We have extensive experience of managing supply chain disruptions in China, including those caused by previous viral outbreaks."

The board said it was expecting full-year profitability for the 2020 financial year to be in line with market expectations.

Ultimate Products said it intended to announce its interim financial results on 30 April.

At 1423 GMT, shares in UP Global Sourcing Holdings were down 9.27% at 59.43p.