H1 profits up 45% for pottery maker Portmeirion

STOKE-ON-TRENT pottery group Portmeirion has seen a strong first half but the company has said it is too early yet to say whether the performance will be matched during the second half.

Latest interims show a 14% rise in revenue to £27.9m (H1 2014: £24.5m), with pre-tax profit rising 45% to £1.8m (H1 2014: £1.2m).

In its statement, the group said: “The performance for the first six months of 2015 has been very encouraging. However, it is too early to imply second half increases at a similar level. Our results for the full year are always significantly weighted towards the second half. In 2014 the first half year revenues were 40% of the full year, and pre-tax profits were 16% of the full year, similarly the percentages for 2013 were 41% for revenue and 12% for pre-tax profits. Accordingly, we remain confident for the full year.”

The board has declared an interim dividend of 6.10p per share (2014: 5.50p), an increase of 11% (2014: 10%) which is broadly in line with the percentage increase in the final dividend for the prior year.

The interim dividend will be paid on October 1, 2015.

Other highlights saw EBITDA up by 23% to £2.3m (2014: £1.9m), with earnings per share up by 41% to 13.01p (2014: 9.21p).

The group said it had seen strong sales growth in the UK, USA and other export markets, while its £1.5m project to expand production capacity at its Stoke factory remained on track with the new kiln expected to be commissioned in final quarter of 2015.

Production at the factory continues at record levels with an average of 155,000 best pieces per week for H1 (full year 2014: 150,000). The group has also been buoyed by a strong order book for the second half.

Dick Steele, non-executive chairman, said: “The performance in the first six months of 2015 has been strong. We remain confident of the outcome for the full year.”