Ultimate Products has released a Q3 trading update, reporting flat revenues versus the prior year period. Sales of UP proprietary brands rose 9% in the period, and branded sales as a whole rose by 3%. The announcement prompts us again to upgrade our FY2026 sales forecast by £3m, from £141m to £144m, as our original forecast now looks too conservative after a flat Q3. On current trading and outlook, the Board notes a subdued macroeconomic backdrop and ongoing geopolitical uncertainty, and expects the flat trends seen in Q3 to persist for the remainder of the year. The increasingly brand-led nature of UP’s business does not appear to be reflected in its rating, particularly on EV/EBITDA and dividend yield. Our fair value estimate of 165p/ share is based on 1.1x FY2027 sales, which we consider reasonable relative to UP’s peer group.