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[March 2002]
Portmeirion Full-Year Results for 2001
For the year to 31 December 2001, sales for Portmeirion Group PLC were £29.626 million, down 4% on the previous year. The profit before tax was £1.623 million, which compares with £3.351 million in 2000 - a decline of 52%. Basic earnings per share were 9.63p, which compares with 23.18p (restated) in 2000. The Board said on 18 March 2002 that it was recommending a final dividend of 9.95p, bringing the total to 13.25p for the year. This is unchanged from 2000.The year was badly affected by two external influences. In the UK, sales were adversely affected in the first half by a reduction in the number of overseas visitors due to the Foot and Mouth epidemic. Sales in the USA, which previously accounted for 44% of total group sales, were adversely affected by the major destocking programme undertaken by the company's major department store customers. As a result, group sales at the half-year were down 9% on the previous year.
After a slow first half, Portmeirion was then badly affected by the events of 11 September 2001, as were many companies in the industry. Despite this fact, there was a steady and sustained recovery in the second half, led by strong sales growth in the UK and the Far East. Overall second half sales were 1% above the same period in 2000 so that the sales shortfall for the whole year was reduced to 4% compared to 2000.
Chairman Arthur Ralley said that the events of 2001 had not in any way diminished the group's commitment to its product strategy. The diversification into associated home-ware and gift products under the Portmeirion brand - together with new and innovative ceramic ranges - continues. Portmeirion introduced its 'Starfire' range into its gift offering in the autumn and new ranges will be introduced during 2002 to sustain the company's growing reputation for creative design, he added.
The company is now firmly established in the glassware, home textiles and candle markets, with combined sales of £3.1 million for these sectors. The Board will consider acquisitions as a way of increasing market share in any of these markets if suitable opportunities can be identified.
Arthur Ralley also said: "Emphasis on excellent design and quality has enabled the Group to continue to produce its ceramic ranges in Stoke-on-Trent. The constant drive for improved efficiency and productivity is never ending and will be backed by capital expenditure focused on our ceramic manufacturing plant".
ENDS