Portmeirion sees second successive record year

STAFFORDSHIRE pottery maker Portmeirion Group has seen record revenues for the second year running and a 41% increase in pre-tax profits following strong sales of its Spode and Royal Worcester acquisitions.

The firm saw revenues climb 19% last year to £51.2m (2009: £43.2m), while pre-tax profits came in at £5.2m (2009: £3.7m). The figure is significant as 2009 was also a record year for the group.

The total paid and proposed dividend increased by 10% to 17.40p (2009: 15.80p), while the company said its balance sheet remained very strong with a net cash balance of £6.2m (2009: £4.4m).

While Spode and Royal Worcester performed well, the company said it had seen sales growth across all four of its brands – the others being Portmeirion itself and Pimpernel. To sustain growth, the company has launched more than 250 new products this year including six new bone china patterns and a new Paddington Bear range.

Sales for the first two months of this year are up 15% on the corresponding period last year and the group said export sales had also been strong in markets such as the United States and South Korea.

However, UK sales dipped 3.7% during the year, with a severe decline in the pre-Christmas period. This has been blamed on the bad weather in December.

Nevertheless, such is demand that the group’s Stoke-on-Trent factory is producing at its highest ever levels, with kilns running 24 hours a day, seven days a week.  

Dick Steele, non-executive chairman, said: “We are delighted to report another record year with trading above market expectations. We achieved growth across all four brands, and sales of Spode and Royal Worcester were well above the figure we had forecasted.

“We have plans to further increase our spend on product development and have already launched over 250 new products in 2011.

“The new financial year has started well with revenues for the first two months of 2011, 15% above the corresponding period last year. The outlook for the remainder of 2011 is positive.”
 
When the group acquired the Spode and Royal Worcester brands in April 2009 it forecast revenues of £19m from them by the end of 2010; it actually achieved revenues of £22m during the period.  The acquisition of Spode and Royal Worcester cost the firm just £2.2m.

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