Ultimate Products Company Research (ULTP)

Strong relations with UK retailers and the potential to build on European expansion are important components of the value proposition and growth case for Ultimate Products plc. The owner of the Beldray and Salter brands today announced two important Board appointments that are consistent with those objectives. As a brand manager with clearly prioritised distribution channels, we retain our 200p Fair Value for UP’s shares. UP is to appoint two new Non-Executive Directors, both of which have pertinent experience and strong track records, to its Board with effect from 28th October this year. Andrew Milne, the current CEO of diversified and international soft drinks group Nichols plc, and José Carlos González-Hurtado, who holds Senior Advisor roles at global private equity firm Advent International and Roland Berger, an international management consultancy. We view these appointments positively. Today’s announcement is consistent with UP’s growth strategy, which is driven by a twin commitment to its brands and distribution channels. We reiterate the case for a 200p fair value, at which the company’s FY2025 EV/EBITDA would be 8.9x and its prospective P/E ratio an undemanding 13.8x.