Interim Results
Portmeirion Group PLC
17 August 2000
PORTMEIRION GROUP PLC
INTERIM RESULTS
CHAIRMAN'S STATEMENT
Financial Highlights
First First Increase
Half Half %
2000 1999
£000's £000's
Turnover 14,898 13,124 13.5
Profit before tax 1,097 926 18.5
Earnings per share 7.09p 5.86p 21.0
Interim dividend 3.30p 3.30p -
per share
Results
First half sales increased by 13.5% on last year's. Profit
before tax increased by 18.5%, and earnings per share
increased by 21.0%.
Dividend
The Board has decided to declare an unchanged interim dividend
of 3.30p per share, payable on 2nd October 2000, to
shareholders on the register on 15th September 2000.
Trading Performance
It is encouraging to report that the results continue to be
positive. We have continued to build on the improved
performance of the second half of 1999. The total sales
increase of 13.5% included a 23% increase in the UK, and a 13%
increase in the USA, our two major markets. Sales to the EU
were some 18% higher.
The new product ranges have contributed greatly to this
improved performance. 'The Seasons Collection', launched last
year has continued to sell very well, and our two new ranges
launched this spring, 'Dawn' and 'Dusk', have been a great
success.
Our strategy of product diversification into other areas of
home-ware and giftware, including lines of glass, metal and
textiles, continues under the 'Portmeirion' brand and is being
very well received by our major customers. The range of out-
sourced non-ceramic products enhances our overall product
offer, adding variety and interest and we will continue to
pursue this strategy.
Our manufacturing efficiency is steadily improving, as we
begin to reap the benefits of our 'lean' manufacturing
techniques. As a result, the operating margin has improved,
and we expect this improvement to continue.
We have now had notice that we will receive grants totalling
approximately £3.1m. towards the cost of building our Visitors
Centre and high technology factory extension. We will now
proceed with this project, which will further enhance the
Portmeirion brand image while generating additional sales and
profits.
Future
The second half of the year has started well and we view the
future with growing confidence. The company will continue to
emphasise high quality design, and the designers themselves,
in our marketing effort in order to further enhance
Portmeirion's reputation as a leading brand for style and
quality, both classic and contemporary.
Arthur Ralley
Chairman
17th August 2000
CONSOLIDATED PROFIT AND LOSS
ACCOUNT
(Unaudited)
Notes Six Six Year
Months Months
to to to
30.6.00 30.6.99 31.12.99
£000's £000's £000's
Turnover - continuing 6 14,898 13,124 27,469
operations
Raw materials and operating (14,048) (12,451) (25,110)
costs
-------- ------- -------
- -
Operating profit - 850 673 2,359
continuing operations
Share of profit of 71 64 133
associated undertakings
Interest receivable and 176 190 332
similar income
Interest payable and similar - (1) (1)
charges
-------- ------- -------
- -
Profit on ordinary 1,097 926 2,823
activities before taxation
Taxation on profit on (360) (317) (901)
ordinary activities
-------- ------- -------
- -
Profit for the period 737 609 1,922
Dividends (343) (343) (1,377)
-------- ------- -------
- -
Retained profit for the 394 266 545
period
======== ======= =======
Earnings per share 4 7.09p 5.86p 18.50p
======== ======= =======
Diluted earnings per share 4 7.09p 5.86p 18.49p
======== ======= =======
Dividend per share 5 3.30p 3.30p 13.25p
======== ======= =======
See notes below
CONSOLIDATED BALANCE SHEET
(Unaudited)
As at As at As at
30.6.00 30.6.99 31.12.99
£000's £000's £000's
Fixed assets
Tangible assets 9,243 9,253 9,441
Investments 1,152 1,160 1,088
-------- -------- --------
10,395 10,413 10,529
Current assets
Stocks 6,837 5,505 6,176
Debtors 5,891 5,725 4,443
Cash at bank and in hand 5,930 7,197 7,573
-------- -------- --------
18,658 18,427 18,192
Creditors: amounts falling (4,534) (4,985) (4,609)
due within one year
Net current assets 14,124 13,442 13,583
-------- -------- --------
Net assets 24,519 23,855 24,112
======== ======== ========
Capital and reserves
Called up share capital 519 519 519
Share premium account 4,536 4,536 4,536
Profit and loss account 19,464 18,800 19,057
-------- -------- --------
Equity shareholders' funds 24,519 23,855 24,112
======== ======== ========
CONSOLIDATED CASH FLOW STATEMENT
(Unaudited)
Notes Six Six
Months Months Year
to to to
30.6.00 30.6.99 31.12.99
£000's £000's £000's
Cash flow from 8 (291) 407 2,435
operating activities
Dividends received from - - 160
associates
Returns on investments 9 181 192 327
and servicing of
finance
Taxation (157) (103) (903)
Capital expenditure and 9 (342) (467) (1,271)
financial investment
Equity dividends paid (1,034) (1,034) (1,377)
------- ------- -------
Cash outflow before use (1,643) (1,005) (629)
of liquid resources and
financing
Management of liquid 41 372 (4,513)
resources
------- ------- -------
Decrease in cash in the (1,602) (633) (5,142)
period
======= ======= =======
Reconciliation of net
cash flow to movement
in net funds
Decrease in cash in the (1,602) (633) (5,142)
period
Cash (inflow)/outflow (41) (372) 4,513
from
(decrease)/increase in
liquid resources
Net funds at 1st 7,573 8,202 8,202
January
------- ------- -------
Net funds at period end 7 5,930 7,197 7,573
======= ======= =======
See notes below
STATEMENT OF TOTAL RECOGNISED
GAINS AND LOSSES
RECONCILIATION OF MOVEMENTS
IN SHAREHOLDERS' FUNDS
(Unaudited)
STATEMENT OF TOTAL RECOGNISED
GAINS AND LOSSES
Six Six
Months Months Year
to to to
30.6.00 30.6.99 31.12.99
£000's £000's £000's
Profit for the period 737 609 1,922
Currency translation 13 134 112
differences
------- ------- -------
Total recognised gains and 750 743 2,034
losses for the period
======= ======= =======
RECONCILIATION OF MOVEMENTS
IN SHAREHOLDERS' FUNDS
Six Six
Months Months Year
to to to
30.6.00 30.6.99 31.12.99
£000's £000's £000's
Profit for the period 737 609 1,922
Dividends (343) (343) (1,377)
Currency translation 13 134 112
differences
------- ------- -------
Net addition to shareholders' 407 400 657
funds
Opening shareholders' funds 24,112 23,455 23,455
------- ------- -------
Closing shareholders' funds 24,519 23,855 24,112
======= ======= =======
NOTES
(Unaudited)
1. The consolidated profit and loss accounts for the six
months ended 30 June 2000 and 30 June 1999 and balance
sheets at those dates have neither been reviewed by the
auditors nor audited.
2. The comparative figures for the financial year ended 31
December 1999 are not the Group's statutory accounts for
that year. Those accounts have been reported on by the
Group's auditors and delivered to the Registrar of
Companies. The report of the auditors was unqualified and
did not contain a statement under Section 237(2) or (3)
of the Companies Act 1985.
3. This Interim Statement has been prepared in accordance
with the accounting policies set out in the Group's 1999
Report and Accounts.
4. The earnings per share are calculated on earnings of
£737,000 (1999 - £609,000) and the weighted average
number of Ordinary shares of 10,389,230 (1999 -
10,389,230) in issue during the period. The options in
existence during the six months ended 30 June 2000 and
1999 do not have a dilutive effect as defined by FRS 14
and therefore the diluted earnings per share under FRS 14
are the same as the basic earnings per share.
5. A dividend of 3.3p (1999 - 3.3p) per Ordinary share will
be paid on 2 October 2000 to shareholders on the register on
15 September 2000.
6. Turnover by destination
Six Six
Months Months Year
to to to
30.6.00 30.6.99 31.12.99
£000's £000's £000's
United Kingdom 5,751 4,687 10,419
North America 6,688 5,897 12,023
European Union 1,496 1,265 2,557
Far East 546 675 1,473
Rest of the World 417 600 997
------- ------- -------
14,898 13,124 27,469
======= ======= =======
7. Analysis of net funds
As at As at As at
30.6.00 30.6.99 31.12.99
£000's £000's £000's
Cash in hand, at bank 1,086 7,197 2,688
Short term money market 4,844 - 4,885
deposits
------- ------- -------
Total 5,930 7,197 7,573
======= ======= =======
8. Reconciliation of operating profit to operating
cash flows
Six Six
Months Months Year
to to to
30.6.00 30.6.99 31.12.99
£000's £000's £000's
Operating profit 850 673 2,359
Depreciation 601 580 1,182
Exchange (loss)/gain (4) 93 75
(Profit)/loss on sale of (61) 25 39
tangible fixed assets
Increase in stocks (661) (201) (872)
Increase in debtors (1,444) (1,276) (213)
Increase/(decrease) in 428 513 (135)
creditors
------- ------- -------
Net cash (outflow)/inflow (291) 407 2,435
from operating activities
======= ======= =======
All of the above relate to continuing operations.
9. Analysis of cash flows for headings netted in the
cash flow statement
Six Six
Months Months Year
to to to
£000's £000's £000's
Returns on investments and
servicing of finance
Interest received 181 193 328
Interest paid - (1) (1)
------- ------- -------
Net cash inflow for returns
on investments
and servicing of finance 181 192 327
======= ======= =======
Capital expenditure and
financial investment
Purchase of tangible fixed (446) (585) (1,450)
assets
Sale of tangible fixed assets 104 118 179
------- ------- -------
Net cash outflow for capital
expenditure
and financial investments (342) (467) (1,271)
======= ======= =======
Note:
Copies of this statement will be posted to shareholders and
will be available from the Company Registered Office, London
Road, Stoke-on-Trent, Staffordshire ST4 7QQ.
17 August 2000