Pottery firm plans new jobs after sixth successive record year
STOKE-ON-TRENT pottery maker Portmeirion is targeting fresh growth and new jobs in 2015 after announcing a sixth successive year of record sales.
The firm said in its annual results statement that the performance, together with its confidence for the future, had enabled it to increase its dividend for the sixth successive year.
Revenues reached £61.4m for the year ended December 31, 2014, an increase of 5.3% (2013: £58.3m). At a constant US dollar exchange rate the increase would have been even higher at 7.6%.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 7.4% to £8.9m (2013: £8.m). Pre-tax profit was £7.6m, an increase of 8.6% over the comparative year (2013: £7m). Both of these figures represent another record year for the business.
Basic earnings per share increased by 8.2%, dividends have been increased by 10.4%.
The firm created 80 new jobs in 2014 and the average number of employees during the year increased from 578 to 631.
“We anticipate further job creation in 2015,” it said.
“In January 2015 we announced an extensive expansion of our production capacity in Stoke-on-Trent. By the last quarter of 2015 we will have commissioned a new tunnel kiln and other associated production equipment at a cost of £1.5m which will be met from our current cash facilities. This expansion will enable us to drive our UK production to 250,000 per week; as demand increases we will be able to meet it.”
The company’s largest market remains the United States, which represents nearly a third of its total our sales. It said the improving economi9c climate in the US was a major factor in increasing sales.
The UK is the firm’s second largest market accounting for just over a quarter of its revenues; here sales increased by 3.3% over 2013. At just under a quarter of total sales, South Korea had another good year with sales up 2%. Sales growth in the rest of the world was an impressive 25.3% during the year, with a starring performance in India which grew by 84%.
The firm supplies its products to more than 60 countries throughout the world.
Online sales, principally to UK and US customers, were £2m, representing a 74% on 2013.
The signs are also positive of a good year this year, with trading in the first two months of the current year ahead of the comparative period in 2014.
“However, as we have become increasingly second-half weighted, sales in these months are low in comparison to the rest of the year. We remain confident in our business model for the short and long terms,” it added.
