Manufacturer’s share price drops 10% on weaker demand from Asia
PORTMEIRION’S share price dropped 10% after the company highlighted weaker demand from its Asian markets.
The Stoke-on-Trent manufacturer sells its pottery around the world. While about 60% is sold in the UK and United States, the Asian markets, led by South Korea, are an important part of the business.
The fall ended a steady three-month climb for the share price and reduced its market capitalisation value to £120m.
Portmeirion non-executive chairman, Dick Steele, told yesterday’s annual general meeting: “Our two largest markets, the US and the UK have performed better than during the same period last year but sales to South Korea have not recovered as we had expected.
“As a result total sales for the four months to the end of April were 2% below the corresponding period last year. We have also experienced an unexpected decrease in demand from some of our other Asian markets. However, we do not believe that this is a permanent trend.”
Earlier this month the company bought candle maker Wax Lyrical for £17.5m in a deal which is expected to increase the group’s turnover by one-fifth to more than £80m.
Mr Steele added: “We are taking action in response to the decrease in demand and we are confident that this, combined with our recent acquisition of Wax Lyrical, will provide overall growth for the Group this year. Consequently, we expect profit before tax to be in line with market expectations for the full year.”