StockMarketWire.com - Consumer goods group UP Global Sourcing, also known as Ultimate Products, said it would reinstate its dividend, even as its earnings slipped in the year to 31 July 2020.

Ultimate Products said it was reinstating its suspended 1.16p per share interim dividend, which would now be payable on 9 October.

The company also said it was recommencing its previously stated dividend policy of distributing 50% of its adjusted net profit.

Underlying pre-tax profit for the 12 months through July fell 2.7% to £8.2m, excluding a credit from the Covid-19 job retention scheme.

Revenue fell 6.1% to £115.7m, which the company said reflected order cancellations and deferrals due to the Covid-19 pandemic, albeit offset by strong growth in sales to supermarkets and online channels.

Ultimate Products last month announced that it had decided to repay the £0.47m that it has received under the Coronavirus Job Retention Scheme.

Turning the current financial year, it said its order book was ahead of this time last year.

'Given the significant challenges that Covid-19 initially caused for our business, I am delighted with the resilience of the performance that we have delivered in the 2020 financial year,' chief executive Simon Showman said.

'The consumer response to our brands has continued to strengthen, particularly via supermarket, online and international channels.'

'Despite the challenges of Covid-19, we have continued to provide a high quality service to our customers and to develop our product range.'

'Notwithstanding the ongoing economic uncertainty, we remain confident in the long-term prospects for Ultimate Products.'

At 8:07am: [LON:UPGS] UP Global Sourcing Holdings Plc share price was +3p at 107.75p



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