(Alliance News) - Shares in Ultimate Products PLC on Friday plunged as it warned full-year sales and profit would be below City forecasts.

Shares in the The Manchester-based owner of homeware brands, including Salter and Beldray fell 19% to 138.50 pence in London on Friday.

Ultimate Products said financial third quarter sales had fallen 7% from a year before. Trading has been impacted by a slowdown in near-term sales from landed stocks, typically at higher gross margin, reflecting the broader slowdown seen in retail sales to consumers, it said.

Ultimate Products' financial year runs to July 31.

It expects these trading conditions will continue throughout the fourth quarter.

Therefore, Ultimate Products expects full-year revenue to be at least GBP156 million, with gross margin being in line with last year.

This compares to a company-compiled consensus of GBP166.7 million.

Adjusted earnings before interest, tax, depreciation and amortisation is forecast between GBP17.5 to GBP18.5 million compared to the GBP21.5 million consensus.

Ultimate Products said it was seeing an increase in forward ordering by retailers and as a result the order book for financial 2025 is seeing "significant growth" over financial 2024.

Chief Executive Andrew Gossage said: "It is disappointing that Spring has seen continued poor demand from consumers, which has adversely affected sales in the current quarter."

Separately, the company announced the start of a share buyback programme. This is expected to be completed in several tranches, with the first of up to GBP1 million ending on July 31.

By Jeremy Cutler, Alliance News reporter

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