Trading Statement

Portmeirion Group PLC
28 July 2004



Portmeirion Group plc

Trading Statement

Portmeirion Group plc (the 'Group') announces that, since its trading statement
made on 6 May 2004, Group sales have been below management's expectations
resulting in sales and gross margins for the 6 months to 30 June 2004 being
considerably below management's expectations. Consequently the first half year's
results will show a pre-tax loss and a much reduced sales figure for July 2004
leads management to expect a significantly lower pre-tax result for the year to
31 December 2004.

Group sales for the first half-year to the end of June were 1.4% above the
previous year. Sales in the United States have recovered well and were 22% ahead
in US dollars, but as a result of the weakened dollar this is reduced to 13%
when translated into sterling. Sales to Korea also held up well and were 14%
ahead of last year. Sales in the UK were slightly ahead of last year but below
expectation. Sales to our other export markets were below expectations.

Although the forward order book is healthy, the improvement in sales has not
materialised as quickly as had been expected. These factors, together with the
previously reported additional costs of pension fund contributions and the
ongoing negative impact of exchange rates, have lead to a reduction in
expectations for the full year.

Following a thorough review of the Group's markets, the Board believes that
trading conditions in the short term are likely to remain difficult. The Board
has, therefore, reviewed its capital expenditure plans. As a result, the
substantial capital expenditure planned over the next three years to build a new
distribution centre and expanded manufacturing facilities will be substantially
reduced. This will preserve the Company's strong balance sheet and cash
resources. However, the Group will go ahead with the acquisition of a new
distribution centre by leasing an appropriate building and only expend
approximately £3.0 million on the internal equipment. This investment is
essential for the future development of the company.

Given the Group's strong balance sheet and the steps being taken as outlined,
the Board expects to maintain both the interim and full year dividends.

The first-half interim results for 2004 are expected to be announced on August
13 2004.




Arthur Ralley
Chairman
28 July 2004



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