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[August 2002]
Big Boost in Profits for Portmeirion
For the first half of 2002, turnover at Portmeirion Group PLC (Stoke-on-Trent, Staffs, England) was up 6.2%, from £13.552 million to £14.395 million. Profit before tax increased 287%, from £262,000 to £1.015 million. Earnings per share were up 329%, from 1.53p to 6.56p. The Board has decided to declare an unchanged interim dividend of 3.30p.Total sales in the UK increased by 3.7% compared to the first half of 2001. The company's 15 retail outlets contributed a 25% increase in sales and Portmeirion intends to carefully expand the number of retail sites.
Last year's decline in USA sales has been arrested and total sales are in line with the first half of last year. However, business there remains very fragile and the turmoil in the equity markets has created a lack of confidence in consumers. As a result, the company's major retail customers are taking a very conservative approach to their sales projections. Since the USA accounts for almost 40% of turnover, the company sees this as continuing to be a significant factor in its second half performance.
Total sales in the Far East increased by 127%, with major improvements in Korea and Japan. Marketing initiatives led to a significant increase in the number of stores offering Portmeirion branded tableware and home wares.
Chairman A. Ralley said: "Our continued drive for improved manufacturing efficiency, together with investment in new plant and machinery, is now delivering real benefits. The manufacturing gross margin in the first half of 2002 is considerably higher than last year and the production management team are confident that further improvements are possible to this commendable increase in productivity. This, together with tightly controlled indirect costs, has had a significant impact in improving profitability. Our commitment is to continue to invest in our manufacturing operations in Stoke-on-Trent.
"The consumers' demand for new product ranges, reflecting current style and fashion, continues to be a major influence in our strategic planning. It is essential that we have new design led products every year and to that end, the Company has recently launched several important ranges…..
"These new ranges, together with a new collection of porcelain mugs, textiles and candles, continue the strategy of home ware development with design excellence. I believe that our management team have produced a commendable improvement in the Company's performance, in difficult trading conditions, and we are well prepared for the challenges ahead. Our proven strategy should lead to continuing growth and success."
ENDS