Universal Safety Products Reports 20.7% Revenue Growth and Net Income Turnaround for Fiscal Year Ending March 31, 2025

Universal Safety Products, Inc., formerly known as Universal Security Instruments, Inc., reported a significant turnaround in its financial performance for the fiscal year ending March 31, 2025. The company achieved net sales of $23.6 million, marking a 20.7% increase from $19.5 million in the previous fiscal year. This growth was accompanied by a net income of $500,684, a substantial recovery from a net loss of $695,790 in fiscal 2024, reflecting an increase in profitability of approximately $1.2 million. The improvement in net income was primarily driven by increased sales to retail customers and a tax benefit related to the reversal of a portion of the reserve for deferred tax assets.

The company underwent a strategic shift during the fiscal year, culminating in an asset sale to Feit Electric Company, Inc. on May 22, 2025. This transaction involved the sale of the smoke and carbon monoxide alarm segment of the business, along with associated intangible assets. Following the sale, Universal Safety Products plans to focus on importing and marketing its remaining product lines, while exploring additional business opportunities to enhance shareholder value. The asset sale was approved by shareholders on April 15, 2025, and is expected to allow the company to streamline operations and concentrate on its core offerings.

Operationally, the company reported a backlog of orders amounting to approximately $2.1 million as of March 31, 2025, a decrease from $5.3 million the previous year. This decline was attributed to delays in orders from a large retailer due to supply chain issues. The company continues to rely heavily on its subsidiary, Universal Electric, which markets products to the electrical distribution trade. Approximately 96.3% of the company's purchases were sourced from Eyston Company Limited, underscoring the importance of this supplier relationship. The company had a total of 11 employees as of March 31, 2025, with a focus on administration, sales, and product development.

Looking ahead, Universal Safety Products faces challenges related to tariffs on imported goods, which have increased from 25% to 55% on certain products since the end of the fiscal year. This situation raises concerns about the company's ability to maintain competitive pricing and could impact future sales. Management remains optimistic about the potential for improved profitability, particularly with the anticipated recovery in the U.S. housing market, which is crucial for the company's sales. The company is also exploring strategic alternatives and business opportunities to further drive long-term value for shareholders.