Ultimate Products continues share buyback with new tranche

Published 03/02/2025, 08:52
Ultimate Products continues share buyback with new tranche

LONDON - Ultimate Products PLC, the owner of renowned homeware brands like Salter and Beldray, has commenced the fourth tranche of its ongoing share buyback program, as per its latest update on Monday. The company, which had previously announced its intention to maintain a net bank debt/adjusted EBITDA ratio of around 1.0x, is proceeding with a policy that includes returning approximately 50% of post-tax profits to shareholders through dividends and share buybacks.

The fourth tranche, which started today, involves the repurchase of ordinary shares with a maximum consideration of up to £2 million over the next six months, ending on July 31, 2025. This tranche follows the completion of the first three, with the most recent one ending on January 31, 2025. Ultimate Products has entrusted Shore Capital Stockbrokers Limited with the execution of this phase, with the broker acting independently of the company to determine the timing of the share purchases.

The repurchase of shares will adhere to the terms set during the company’s General Meeting on December 13, 2024, which granted authority to buy back up to 8,792,906 ordinary shares. The price paid for each share will not exceed 105% of the average middle market quotations for the five days preceding the purchase, nor will it be less than the nominal value of the shares.

The share buyback program is designed to operate within the pricing parameters of the Market Abuse Regulation. However, due to the limited liquidity in the issued ordinary shares, the company may exceed 25% but will remain below 50% of the average daily trading volume in the 20 trading days preceding the repurchase, potentially not benefiting from the exemption contained in the regulations.

Any market repurchase of shares will be publicly announced by 7:30 am on the business day following the transaction. The company’s ongoing strategy reflects its commitment to efficient capital allocation while enabling continued investment in business growth.

This update is based on a press release statement from Ultimate Products PLC.

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