Interim Results

Portmeirion Group PLC
14 August 2003


                             PORTMEIRION GROUP PLC
                           RESULTS FOR 6 MONTHS ENDED
                                  30 JUNE 2003


CHAIRMAN'S STATEMENT

Financial Highlights:-

                                 First Half        First Half         Decrease
                                       2003              2002                %
                                     £000's            £000's

Turnover                             13,211            14,395             (8.2)
------------------                -----------       -----------      -----------
Profit before tax                       506             1,015            (50.1)
------------------                -----------       -----------      -----------
Earnings per share - Basic             3.07p             6.56p           (53.2)
------------------                -----------       -----------      -----------
Interim dividend per share             3.30p             3.30p               -
------------------                -----------       -----------      -----------


Results

First half sales decreased by 8.2% compared to last year's. Profit before tax
decreased by 50.1% and earnings per share decreased by 53.2%


Dividend


The Board has decided to declare an unchanged interim dividend of 3.30p payable
on 1 October 2003, to shareholders on the register on 12 September 2003.


Trading Performance


The first half sales were severely affected by the impact of the uncertain
political situation in Iraq early in the year, and the outbreak of the SARS
virus. These factors resulted in first quarter Group sales being 15% lower than
the previous year mainly due to sales in the USA being particularly badly
affected.


However, with the overall economic climate improving as these negative factors
diminished, sales in the second quarter improved and were level with the
previous year. As a result, first half sales in the UK were in line with the
Group performance, at 7% below the previous year. In the USA, which accounts for
approximately 30% of turnover, dollar sales in the first half were 24% below the
previous year. Our Far Eastern sales performance continues to offset some of the
decline in the USA, with sales in the first half increasing by 24% and
representing 15% of Group turnover. There was also a welcome turnaround in sales
to Europe, with first half sales increasing by 62%.


Despite the overall reduction in production volumes, improvements in
manufacturing efficiency continued and overall gross margins were maintained.


The Group is faced with an intensely price competitive environment in the UK and
the USA. Average retail prices have moved ever lower, and greater volumes of
ceramic products have been sourced in low-cost countries in the Far East.
Supermarkets and lower priced national retailers are increasing their market
share each year, directly affecting the market segment in which we operate.


Recognising this as a permanent trend, the Group has developed a lower cost
range, still incorporating our design and quality standards, under the new brand
of PS portmeirion studio. This new range has been successfully launched in the
USA, and will be selling into the market this autumn. I believe that the PS
portmeirion studio range can be developed for our other important markets.
Another important strategic development is the introduction of additional gift
merchandise in both ceramic and glassware ranges which, I believe, will benefit
sales in the second half of the year.


Investment

Besides achieving continuous cost reductions, the Group's production staff have
investigated and planned a fundamental re-organisation of our equipment and
working methods. We are now convinced that this is the way to make our ceramic
products fully competitive and profitable, even in recession.


At present an urgent problem is to meet the growing calls from our retail
customers for ever quicker delivery of orders and for greater flexibility in
labelling and packaging.


As a first step in our long-term plan, the Board, after careful research, has
approved the construction of a new warehousing and distribution centre. A newly
built modern warehouse and distribution centre, using up-to-date, high
efficiency, handling equipment, will be cost effective and give all our products
a real competitive advantage. The warehousing and distribution centre will cost
approximately £6 million, which can be met from existing cash resources.


In the short term, I believe we can only be cautious about prospects for the
second half of this year. However, if there is an improvement in the economic
climate, particularly in the USA, the Group is well prepared with new product
ranges to take advantage, and therefore improve on the Group's first half
performance.


A Ralley
Chairman
13 August 2003


INDEPENDENT REVIEW REPORT
TO PORTMEIRION GROUP PLC


Introduction


We have been instructed by the Company to review the financial information for
the six months ended 30 June 2003 which comprises the consolidated profit and
loss account, the consolidated balance sheet, the consolidated cash flow
statement, the statement of total recognised gains and losses, the
reconciliation of movements in shareholders' funds and related notes 1 to 9. We
have read the other information contained in the interim report and considered
whether it contains any apparent misstatements or material inconsistencies with
the financial information.


This report is made solely to the Company in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the Company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the Company, for our review work, for this report, or for the conclusions we
have formed.


Directors' responsibilities


The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures are consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.


Review work performed


We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom auditing standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.


Review conclusion


On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2003.


Deloitte & Touche LLP

Chartered Accountants and Registered Auditors

Birmingham


13 August 2003



PORTMEIRION GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT

                    Notes        Six Months       Six Months              Year
                                 to 30.6.03       to 30.6.02       to 31.12.02
                                     £000's           £000's            £000's

Turnover -               6           13,211           14,395            30,712
continuing
operations

Raw materials and                   (12,885)         (13,539)          (28,174)
operating costs
                                    --------          -------           -------
Operating profit -                      326              856             2,538
continuing
operations

Share of profit of                       87               81               230
associated
undertakings
Interest receivable                      93               78               155
and similar
income
                                    --------          -------           -------
Profit on ordinary                      506            1,015             2,923
activities before
taxation

Taxation on profit                     (187)            (333)             (870)
on ordinary
activities
                                    --------          -------           -------
Profit for the                          319              682             2,053
period

Dividends                              (344)            (343)           (1,378)
                                    --------          -------           -------
Retained (loss)/                        (25)             339               675
profit for the                      ========          =======           =======
period

Earnings per             4             3.07p            6.56p            19.75p
share                               ========          =======           =======

Diluted earnings         4             3.06p            6.55p            19.71p
per share                           ========          =======           =======

Dividend per             5             3.30p            3.30p            13.25p
share                               ========          =======           =======

See notes on pages
8 and 9



PORTMEIRION GROUP PLC
CONSOLIDATED BALANCE SHEET

                 As at 30.6.03          As at 30.6.02         As at 31.12.02
                £000's    £000's       £000's    £000's       £000's    £000's

Fixed assets
Tangible                   7,984                  8,694                  8,249
assets
Investments                1,632                  1,448                  1,503
                          -------                 ------                 ------
                           9,616                 10,142                  9,752
Current
assets
Stocks           7,104                  7,410                  6,195
Debtors          5,265                  5,712                  5,715
Cash at bank     6,142                  5,413                  7,678
and in hand
                -------                 ------                 ------
                18,511                 18,535                 19,588

Creditors:      (3,548)                (3,980)                (4,732)
amounts         -------                 ------                 ------
falling due
within one
year

Net current               14,963                 14,555                 14,856
assets                    -------                 ------                 ------

Total assets              24,579                 24,697                 24,608
less current
liabilities

Provisions for              (162)                  (240)                  (261)
liabilities
and charges
                           -------                 ------                 ------
Net assets                24,417                 24,457                 24,347
                           =======                 ======                 ======

Capital and
reserves
Called up                    521                    520                    520
share
capital
Share premium              4,580                  4,547                  4,547
account
Profit and                19,316                 19,390                 19,280
loss account              -------                 ------                 ------

Equity                    24,417                 24,457                 24,347
shareholders'             =======                 ======                 ======
funds



PORTMEIRION GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT

                    Notes        Six Months       Six Months              Year
                                 to 30.6.03       to 30.6.02       to 31.12.02
                                     £000's           £000's            £000's

Cash flow from           8             (244)           1,645             5,053
operating
activities

Returns on               9               99               72               175
investments and
servicing of
finance

Taxation                               (176)            (164)             (827)

Capital expenditure      9             (214)            (323)             (563)
and financial
investments

Equity dividends                     (1,035)          (1,034)           (1,377)
paid                                 --------          -------          --------

Cash (outflow)/                      (1,570)             196             2,461
inflow before use
of liquid
resources and
financing

Management of                         1,155             (345)           (1,824)
liquid resources

Financing                9               34               12                12
                                     --------          -------          --------

(Decrease)/increase                    (381)            (137)              649
in cash in the                       ========          =======          ========
period

Note to
consolidated cash
flow statement:
Reconciliation of net cash flow
to movement in net funds

(Decrease)/increase                    (381)            (137)              649
in cash in the
period

Cash (inflow)/outflow from           (1,155)             345             1,824
(decrease)/increase in liquid
resources

Net funds at 1st                      7,678            5,205             5,205
January                              --------          -------          --------

Net funds at period      7            6,142            5,413             7,678
end                                  ========          =======          ========

See notes on pages
8 and 9



                                PORTMEIRION GROUP PLC
                     STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
                   RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS



STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                                 Six Months       Six Months              Year
                                 to 30.6.03       to 30.6.02       to 31.12.02
                                     £000's           £000's            £000's

Profit for the period                   319              682             2,053

Currency translation                     61             (162)             (608)
differences
                                     --------         --------          --------
Total recognised gains and              380              520             1,445
losses for the period                ========         ========          ========

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

                                 Six Months       Six Months              Year
                                 to 30.6.03       to 30.6.02       to 31.12.02
                                     £000's           £000's            £000's

Profit for the period                   319              682             2,053

Dividends                              (344)            (343)           (1,378)

Currency translation                     61             (162)             (608)
differences

Shares issued under employee             34               12                12
share schemes
                                     --------         --------          --------
Net addition to shareholders'            70              189                79
funds

Opening shareholders' funds          24,347           24,268            24,268
                                     --------         --------          --------
Closing shareholders' funds          24,417           24,457            24,347
                                     ========         ========          ========



PORTMEIRION GROUP PLC

NOTES

 1.  The consolidated profit and loss account for the six months ended 30 June
     2003, the consolidated balance sheet at that date, the consolidated cash
     flow statement, the statement of total recognised gains and losses, the
     reconciliation of movements in shareholders' funds and the notes to the
     financial information, have been reviewed by the auditors but not audited.
     The consolidated profit and loss account for the six months ended 30 June
     2002 and the consolidated balance sheet at that date have also been
     reviewed by the auditors but not audited.

 2.  The comparative figures for the financial year ended 31 December 2002 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 2002 Report and Accounts.

 4.  The earnings per share are calculated on earnings of £319,000 (2002 -
     £682,000) and the weighted average number of Ordinary shares of 10,406,114
     (2002 - 10,392,147) in issue during the period. The options in existence
     during the six months ended 30 June 2003 have a dilutive effect as defined
     by FRS 14. The diluted earnings per share under FRS 14 are calculated on
     earnings of £319,000 (2002 - £682,000) and a weighted average number of
     Ordinary shares in issue adjusted to assume conversion of all dilutive
     potential Ordinary Shares which is 10,409,295 (2002 - 10,417,861).

 5.  A dividend of 3.3p (2002 - 3.3p) per Ordinary share will be paid on 1
     October 2003 to shareholders on the register on 12 September 2003.

 6.  Turnover by destination


                                       Six Months    Six Months           Year
                                       to 30.6.03    to 30.6.02    to 31.12.02
                                           £000's        £000's         £000's

     United Kingdom                         5,337         5,759         12,820
     North America                          4,255         5,932         12,108
     European Union                         1,402           865          1,792
     Far East                               1,938         1,560          3,448
     Rest of the World                        279           279            544
                                           --------     ---------       --------
                                           13,211        14,395         30,712
                                           ========     =========       ========

 7.  Analysis of net funds
                                            As at         As at          As at
                                          30.6.03       30.6.02       31.12.02
                                           £000's        £000's         £000's

     Cash in hand, at bank                    813           408          1,194
     Short term money market                5,329         5,005          6,484
     deposits
                                           --------     ---------       --------
                              Total         6,142         5,413          7,678
                                           ========     =========       ========



 8.  Reconciliation of operating profit to operating cash flows

                                        Six Months       Six Months              Year
                                        to 30.6.03       to 30.6.02       to 31.12.02
                                            £000's           £000's            £000's

Operating profit                               326              856             2,538
Depreciation                                   487              573             1,231
Exchange gain/(loss)                            11             (103)             (478)
(Profit)/loss on sale of tangible              (30)               8                 9
fixed assets
(Increase)/decrease in stocks                 (909)             181             1,396
Decrease in debtors                            415              592               461
Decrease in creditors                         (544)            (462)             (104)
                                            --------        ---------          --------
Net cash (outflow)/inflow from                (244)           1,645             5,053
operating activities                        ========        =========          ========

All of the above relate to continuing
operations.

 9.  Analysis of cash flows for headings netted in the cash flow statement

                               Six Months             Six Months              Year
                               to 30.6.03             to 30.6.02           to 31.12.02
                           £000's    £000's       £000's    £000's       £000's    £000's

Returns on investments
and servicing of
finance
Interest received              99                     72                    175
                             ------                 ------                 ------

Net cash inflow from
returns on investments
and servicing of                         99                     72                    175
finance                                ======                 ======                =======

Capital expenditure and
financial investments
Purchase of tangible         (285)                  (335)                  (611)
fixed assets
Sale of tangible fixed         71                     12                     48
assets                       ------                 ------                 ------

Net cash outflow for
capital expenditure
and financial                          (214)                  (323)                  (563)
investments                            ======                 ======                =======

Financing
Issue of Ordinary shares
under share option
schemes                        34                     12                     12
                             ------                 ------                 ------

Net cash inflow from                     34                     12                     12
financing                              ======                 ======                =======


For further information please contact Arthur Ralley (Chairman), Brett Phillips
(Finance Director) on: 01782 744721






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