Record year for pottery maker Portmeirion with profits up 6.3%
POTTERY group Portmeirion has announced record sales of £58.3m based on strong demand for its various brands in global markets.
The Staffordshire firm, which owns the Portmeirion, Spode, Royal Worcester and Pimpernel brands, said revenue was up 5% over the previous year (2012: £55.5m).
Pre-tax profit increased 6.3% to a record £7m (2012: £6.6m), with the total dividend paid and proposed for 2013 increasing by 10.1% to a record 24p (2012: 21.80p).
The average sales per employee were £100,856, a 6.6% increase on 2012, while EBITDA per employee was £14,285, an increase of 7.5% on 2012.
Dick Steele, non-executive chairman, said: “Our core values are unchanged; we believe in attentive design, assured quality, a professional sales approach, nurtured brands, conservative financing and dividends. We are well positioned and optimistic for the future.”
Looking ahead, he said the business had taken the right steps in regard to people, product and finance in order to continue to build for the future. This was especially true in the US, where he said the business was well positioned to take advantage of the recovery in the North American market.
Trading in the first two months of the current year is ahead of the comparative period in 2013, however, it said sales in these months were traditionally low in comparison to the rest of the year and the second half in particular, especially the Christmas period.
Steele said the group would also be continuing to look for opportunities to add value to the business provided the potential acquisitions met the required standard.
Operational highlights during the year included the completion of the £3.9m purchase of the long leasehold interest in its warehouse and offices in July 2013, while the launch of a new US website helped it to target sales more effectively in a crucial market. The company also revamped its UK website with a similar aim in mind.
The year also saw record UK production levels, together with the Excellence in Housewares Award for its new Sophie Conran cookware range.
The company’s largest and most important pattern remains Portmeirion Botanic Garden, launched in 1972, which accounts for over 40% of sales. Demand for Botanic Garden was strong during 2013, largely from South Korea, and this has driven increased production through its Stoke-on-Trent factory.
The second largest pattern is Spode Christmas Tree, which is mainly sold in North America. This pattern was launched in 1938 and continues to grow. The third largest pattern is Sophie Conran for Portmeirion, which was a 2006 launch and also continues to grow.
