European growth offset by UK sluggishness
UP released a trading statement today, ahead of schedule. FY2025 H1 half sales decreased by 6% to £79.4m as lower UK sales offset a useful 12% advance in International (mainly European) business. The profit margin impact of these weaker than expected sales and high shipping costs prompt us to cut our full year FY2025 EBITDA forecasts from £21m to £15m.However, UP’s order book position is stronger, which augurs positively going into the second half of the financial year despite some end-period moderation. While a disappointing reduction, investors can take some comfort from increased orders and robust European momentum.
We reduce our fair value for the shares from 200p to 165p. That level is still well above the current share price. Central to our assessment of fair value is an implied EV/sales ratio of 1.1x at that share price. UP’s dividend yield should remain superior to its peer group even with a likely FY2025 cut.
Up Global Sourcing Holdings is a supplier of household products to global markets. Co. is the owner, manager, designer and developer of a range of consumer goods brands, focused on the home. Co. sources, imports and sells products across a range of categories including small domestic appliances, audio, laundry, housewares, heating and cooling and luggage.
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