UP Global Sourcing reveals “resilient performance”

UP Global Sourcing shares (LON: UPGS) fell over 10% on Tuesday as the group reported lower-than-expected full-year profits.

The household brands group, which owns brands including Russell Hobbs, reported a 2.7% decline in pre-tax profits and a 6.1% fall in revenue to £115.7m.

Online revenue grew from £11.4m to £16.7m, online revenue accounts for 14.5% of overall revenue.

Despite strong online sales and demand during the pandemic, UP Global Sourcing said supply chain disruption when the pandemic hit China at the start of the year.

The group has reduced its full-year dividend by 3.2% to 3.955p per share.

Commenting on the results, Simon Showman, Chief Executive of Ultimate Products, said:”We are pleased to have delivered such a resilient performance amidst the unprecedented challenges brought about by COVID-19. Through a relentless focus on our strategy and the extraordinary commitment, professionalism and adaptability of our colleagues, our performance has substantially exceeded the expectations that we had at the beginning of the pandemic.

“These results are another clear illustration of the strength of our business model and the importance of having a diversified customer base. Time and time again, we have also found that in difficult trading conditions, retailers require suppliers that can provide them with certainty through compelling value, quality and supply, which plays squarely to our strengths.”

Looking forward, UP Global Sourcing said that despite the disruption, performance exceeded expectations and they reported relatively modest reductions in revenue and profitability.

UP Global Sourcing shares (LON: UPGS) are currently trading -10.27% at 90,85 (1545GMT). Shares this year have remained strong, with a year high of 119.00p.