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UP Global Sourcing cuts dividend as profits fall on pandemic order cancellations
StockMarketWire.com
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UP Global Sourcing has reported lower profits and a cut to its full-year dividend as the coronavirus pandemic dented orders.
The household brands group said the outbreak of coronavirus in China resulted in supply chain disruption earlier this year, which had then transformed into demand side disruption as the illness spread to Europe.
The owner of several consumer brands including Russell Hobbs and Salter reported an underlying pre-tax profit of £8.2 million for the year to 31 July 2020, down 2.7% year-on-year. Revenues fell 6.1% to £115.7 million as a result of order cancellations and deferrals due to the pandemic, although the firm said that this had been offset by strong sales growth from its supermarket and online channels.
UP Global also reduced its full-year dividend by 3.2% to 3.955p per share, while the final dividend fell to 2.795p from 2.925p in 2019.
Looking ahead, the company said market conditions 'remain challenging in the UK' and that it is faced with 'an uncertain environment for consumers, retailers and suppliers'.
However, despite the difficult trading situation, UP Global said current trading is in line with expectations with the order book for its 2021 financial year 'ahead of this time last year'.
'Our performance has substantially exceeded the expectations that we had at the beginning of the pandemic', said UP Global chief executive Simon Showman.
At 9:00am: (LON:UPGS) UP Global Sourcing Holdings Plc share price was -8.85p at 92.4p
Story provided by StockMarketWire.com
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