ULTP: AIM Move And Dividend Reset Will Support Future Share Price Upside

Analysts have raised their price target on Ultimate Products from £1.35 to £1.65, citing a return to modest revenue growth, improving profit margins, and a slightly higher required return despite a lower expected future P/E multiple.

What's in the News

• The board has proposed moving Ultimate Products' listing from the London Stock Exchange Main Market to AIM, citing better suitability at the current market capitalisation. The company intends to use the AIM Designated Market route to streamline the transfer (company announcement).
• The last day of trading on the Main Market is scheduled for 14 January 2026. Cancellation of the Official List admission and simultaneous AIM admission are expected to take effect at 8:00 a.m. on 15 January 2026 (company announcement).
• The company plans to cut the proposed final dividend to 2.15 pence per share from 4.93 pence in 2024, reducing the total annual dividend to 3.7 pence from 7.38 pence (company announcement).
• The reduced final dividend is subject to shareholder approval at the AGM on 12 December 2025. If approved, it will be paid on 30 January 2026 to shareholders on the register as of 5 January 2026, with an ex-dividend date of 2 January 2026 (company announcement).

Valuation Changes

• The fair value estimate has risen from £1.35 to £1.65 per share, a moderate upward revision reflecting improved fundamentals.
• The discount rate has increased slightly from 7.89 percent to 8.09 percent, indicating a marginally higher required return.
• Revenue growth assumptions have shifted from a decline of 2.91 percent to modest growth of 0.30 percent, marking a notable improvement in the outlook.
• The net profit margin forecast has increased from 3.63 percent to 4.29 percent, implying better expected profitability.
• The future P/E multiple has been reduced from 27.7x to 25.0x, indicating a slightly more conservative valuation multiple despite the higher fair value.