Trading Update

RNS Number : 0735S

Portmeirion Group PLC

11 November 2021

 

11 November 2021

Portmeirion Group PLC

(the 'Group')

Trading Update

Sales upgrade for FY21 - strong demand across all key markets

Portmeirion Group PLC, the designer, manufacturer and worldwide distributor of high quality homewares under the Portmeirion, Spode, Royal Worcester, Pimpernel, Wax Lyrical and  Nambé brands,  updates on recent trading and the expected outturn for 2021.

Since our interim results announcement in September 2021, we have continued to see strong sales of our brands across all key markets and have healthy order books for the remainder of the year, including the important Christmas trading period. We therefore now expect sales to be at least £95 million, approximately 5% above current FY21 consensus market expectations.

We continue to navigate the well-publicised disruption and cost inflation within global supply chains. The impact of these short-term pressures and particularly significantly higher costs for container shipping rates will limit, in the immediate short term, the upside on profit from our higher sales in FY21. However, we believe the challenges in global shipping and labour shortages will be short-term in nature and, with the strong trading, will not impact current consensus market expectations of profit for the current period or, in the longer term, our margins and ability to grow as a business.

We note the widespread press in recent weeks on energy intensive industries. We have made significant progress in recent years in reducing our energy usage and will continue to invest in 'green' initiatives as a core part of our strategy. As a central part of our business, our ceramics factory in Stoke-on-Trent buys energy under long term contracts. In the first half of 2021 we extended those contracts until early 2024. As a result, we do not expect to be materially impacted by the latest rising energy prices.

We are pleased to see the ongoing growth in demand for our products around the world reflecting the strong progress we are making on our strategy.

Mike Raybould, Chief Executive commented:

"We are delighted to see the strong levels of demand for our brands around the world. Our focused strategy is transforming our business and our growth is being driven by our ongoing development of online channels, new product launches and expanding international markets.  Whilst there are undoubtedly short-term cost and margin pressures within global supply chains, we are managing any current impact on the business and we are confident in our expectation that we can grow our operating margins over the next three years."

Notes:   This announcement contains inside information for the purposes of the retained UK version of the EU Market Abuse Regulation (EU) 596/2014 ("UK MAR").

Enquiries:-

Portmeirion Group PLC:
Mike Raybould	[phone]	[e-mail]
Chief Executive David Sproston	[phone]	[e-mail]
Group Finance Director
Hudson Sandler:
Dan de Belder	[phone]	[e-mail]
Nick Moore		[e-mail]
Panmure Gordon (Nominated Adviser and Broker):	[phone]
Freddy Crossley	Corporate Finance
Rupert Dearden	Corporate Broking

Singer Capital Markets (Joint Broker):	[phone]
Peter Steel	Investment Banking
Rachel Hayes

 

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