Trading Statement

Portmeirion Group PLC
09 December 2004


                         Portmeirion Group plc

                           Trading Statement

Portmeirion Group PLC announces that sales in America have continued to be ahead
of the previous year, but this benefit has been significantly reduced by adverse
movements in the sterling/dollar exchange rate. Sales in the UK market are
approximately level with the previous year, as is the case in Korea, but sales
in all other markets have declined year on year. The overall effect of this is
that Group sales to date for the final quarter of 2004 will be below
management's expectations, when converted into sterling, as a result of which
full year results will also be below management's expectations and are likely to
be a modest loss before exceptional items and tax.

The major reorganisation of the Group's manufacturing and warehouse facilities,
consolidating from 4 sites to 2, will proceed as advised in the announcement of
4th November 2004. Also, following the loss of an additional distributorship,
the board has reviewed the operation of its wholly owned subsidiary, Portmeirion
Japan and now intends to reorganise its operation in Japan in order to improve
performance. These reorganisations are expected to reduce the Group's annual
operating costs by at least £0.5 million per year with effect from 2006 and will
also result in a one-off exceptional non-cash write-down of approximately £1
million. The Group still expects to sell two freehold sites, generating cash,
which will more than cover actual relocation costs, estimated at £0.5m.

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

During the second half of 2004, the Group has reorganised and strengthened its
management team, in order to re-establish organic sales growth with new product
ranges and new routes to market. The challenges faced by the Group are
formidable, but the radical re-organisation taking place will ensure that the
Group is well prepared to meet those challenges.

For further information contact

A.W. Ralley, Chairman
B.W.J. Phillips, Group Finance Director

Tel: [phone]




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