Record year for pottery firm as revenue tops £84m

Pottery producer Portmeirion has cheered investors by announcing it expects 2017 to be a record year for the business.

The Stoke-on-Trent manufacturer, which produces and distributes products under the Portmeirion, Spode, Royal Worcester and Wax Lyrical brands, confirmed in a market update that revenue for the year to December 31, 2017 is likely to exceed £84.5m.

Shares rose rose than 5% on the forecast.

The performance represents an increase of at least 10% over the previous year and is the ninth consecutive year in which the business has achieved record sales.

Excluding the full year impact of the Wax Lyrical business (which was acquired by the group on May 4, 2016), like-for-like sales growth exceeds 5%.

At a constant US dollar exchange rate, total group revenue increase would have been nearer 8%.

Full year pre-tax profit is also predicted to be slightly ahead of market expectations.

Dick Steele, Non-Executive Chairman, Portmeirion, said: “We are delighted with another record sales result.

“In particular, our year-on-year sales growth strengthened as we moved through the year and the second half results exceeded management expectations.

“Highlights included the United States, export markets and online sales that achieved double digit revenue growth in the second half aided by well received new product launches. With this momentum we therefore look forward with confidence to 2018.”

The group expects to announce its preliminary results for the year ended December 31, 2017 on March 15.

It added that the board remained committed to a progressive dividend policy.