Another Step Forward

Another Step Forward

The management team at retail supplier, Ultimate Products, has bought out private equity investor LDC. The deal comes as the Manchester-based company is set to reveal a 33 per cent increase in profits for the year to end of July 2014. Chief executive Officer Simon Showman and Managing Director Andrew Gossage led the management team. The deal, which saw LDC exit the business, was funded by management as well as co-founder and non-executive director, Barry Franks. Additional working capital funding was provided by incumbent bank, HSBC. UP said that EBITDA is expected to increase by a third from £1.5m in FY13 to £2.0m this year, while sales for the period are anticipated to hit £54.0m, up from £52.6m last year.The company said an increase in sales as well as continued cost control measures have boosted earnings and added that consumer confidence is returning to the market after a tough few years. UP, which has overseas offices in Hong Kong and China and trades with 26 countries worldwide, said demand in its international markets is also strong. To reflect the company’s shift toward supplying key brands, the company is in the process of rebranding. The rebrand is expected to be completed by the end of 2014. Mr Showman said the buyout of LDC’s minority stake is a major step forward for the business as it continues with its strategy of investing in quality brands and focusing on innovation and its people. Gary Black from solicitors Freeman Fisher and Tony Woolley from tax advisers Pareto advised the management team.

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