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[March 2003]
Portmeirion Potteries 2002 Results
Sales for Portmeirion Group PLC for the year ended 31 December 2002 were £30.712 million, 4% above the previous year. The profit before tax of £2.923 million was 80% up on the 2001 figure of £1.623 million. Basic earnings per share were 19.75p compared with 9.63p in 2001. The Board recommended a final dividend of 9.95p, bringing the total to 13.25p for the year. This is unchanged from 2001.Chairman Arthur Ralley said: "The year has seen a commendable recovery in both sales and profitability, at a time when the economic climate has been difficult, particularly in one of our major markets, North America. Our strategy concerning new product ranges, and new areas of distribution, has protected the company from the negative impact of reduced consumer spending in both the USA and Europe.
"Sales in the UK increased by 2% compared with the previous year, supported by an annual increase of 15% in our own retail sales. This is a creditable performance considering the worsening economic outlook in the second half of the year. The company expects to continue to expand the number of our own retail outlets during this year.
"In the USA sales declined by 4% compared with the previous year. The negative forces affecting this market have been well documented, and they have led to a significant reduction in consumer spending, particularly in our middle to upper end target market. I therefore believe that limiting the sales decline to only 4% is a creditable achievement, and is far better than the industry average. The USA accounts for 37% of total Group sales, and with no improvement in trading conditions in sight, the challenge is enormous. The introduction of new ceramic and glassware ranges has ensured that Portmeirion has out-performed many of its competitors, and this, together with a drive into new channels of distribution, is the strategy for the current year.
"The Far East proved to be the biggest growth market. Sales to South Korea increased by 120% to almost £3m and together with Japan now accounts for 11% of total sales. We have first class local management in these markets and with their guidance we are developing additional products exclusively for them. I believe there is the opportunity for further growth in the Far East, and we will continue to invest in our efforts to increase market share in both Japan and Korea.
"The improvement in manufacturing efficiency and productivity has continued during the year, resulting in a significant improvement in manufacturing gross profit margin. A reduction in stock levels was managed very efficiently, the Group total reducing by £1.4 million. This contributed to the Group's total cash balance, which improved by £2.4 million."
ENDS