Portmeirion Group Plc - Interim Results

Portmeirion Group is pleased to announce its performance for the six months ended 30 June 2019.

 

Headlines

 

First half results are in line with our expectations set out in the 14 May 2019 trading update and we anticipate achieving full year expectations.

Revenue of £34.9 million (2018: £36.9 million), down 5.4%. Headline profit before tax1 £0.5 million (2018: £2.1 million).

Revenue growth of 9.2% in the UK, our largest market, and our US market performed in line with our plan in the first half with positive signs for full year.

Export market sales down as reported in May trading update. Considerable progress made since May to resolve short term issues in export markets including new product development for Korea resulting in a stronger order book for the key second half trading period.

Interim dividend maintained at 8.00p per share (2018: 8.00p per share).

Completed $12 million acquisition of Nambé LLC, a US premium homewares business in July 2019 that provides exciting opportunities for sales growth and synergies across our key markets and gives added scale to our existing US sales operation. Expected to be earnings enhancing in first full year of ownership.

1Headline profit before tax excludes exceptional items - acquisition costs (see note 3).

 

Dick Steele, Non-executive Chairman, commented:

 

"Due to the seasonality of our business, the first half is always a small part of the overall Group performance and is not a reliable indicator of the full year. We were disappointed with our May trading update due to short term challenges in our export markets in the first four months of the year. However, we are encouraged by progress made in these markets since May and pleased that other critical parts of the business are performing well and in line with our expectations. Early signs for the remainder of the year are positive and we expect to meet full year market expectations. We are also delighted with the Nambé acquisition in July which will enhance our successful US business and deliver further diversification in both geographical markets and products. We have a great track record of consistent top and bottom line growth and we believe our long term strategy is the correct one to continue this trend in the future."