REG - Portmeirion Group - AGM Trading Statement

PortmeirionAnnouncement

19/05/2022 07:00

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RNS Number : 0164M  Portmeirion Group PLC  19 May 2022

19 May 2022

Portmeirion Group PLC (the 'Group')

AGM Trading Statement

Portmeirion Group PLC, the designer, manufacturer and worldwide distributor of
high quality homewares under the Portmeirion, Spode, Royal Worcester,
Pimpernel, Wax Lyrical and Nambé brands, announces the following trading
update ahead of its Annual General Meeting to be held at 12:30 pm today.

 

We are pleased to report that sales for the first four months of 2022 are up
2% on the same period last year. Gross margins have increased by 50 basis
points, demonstrating the strength of our brands in passing on cost increases
through in price rises.

 

There has been a significant change to consumer sentiment and spending since
last year as consumers deal with the impact of inflation in food staples,
energy and fuel prices. In addition, there has been further Covid related
disruption in supply chains and sales markets, including China. So far we have
successfully mitigated these challenges by forward-ordering stock and having
long term energy contracts in place until March 2024.

 

However, with a traditional heavy second half sales weighting, we remain
cautious and watchful as to how macro conditions develop as the year
progresses.

 

Against this backdrop, the Board is encouraged that the Group continues to
grow and we are confident that our ongoing strategic investments in factory
automation and online platforms will enable future growth in top line sales
and that ongoing improvements in productivity will further enhance margins
over the long term. Additionally, order books for both our key Christmas
trading period and our wider international markets remain healthy.

 

2022 marks the 50th anniversary of our Portmeirion Botanic Garden range, and
we are excited to be launching new product lines in ceramic, gifting and home
fragrance categories to mark this occasion. We continue to invest in our
online channels and as part of this roadmap, will be going live with new UK
ecommerce sites in the next few months.

 

Mike Raybould, Chief Executive, commented:

 

"We have started the year with good momentum against a backdrop of rising
costs, supply chain disruption and wavering consumer confidence, with sales in
the first four months up 2% on the same period last year.

 

I am pleased with the progress we are making in delivering on our strategic
growth objectives which has seen us continue to invest in and develop our
online sales channels, with our new ecommerce sites due to go live over the
coming months, leverage our heritage brands as well as launch new categories
and products.

 

Whilst we remain mindful of ongoing disruption to global supply chains and
inflationary cost pressures, I am confident that our continued investment
across key areas of the business, the strength of our heritage brands and our
exciting roadmap for new products and ranges ensure that we are well placed to
continue growing the Group and delivering long term value to our customers and
our shareholders."

 

Notes: This announcement contains inside information for the purposes of the
retained UK version of the EU Market Abuse Regulation (EU) 596/2014 ("UK
MAR").

 

Enquiries:-

 

 Portmeirion Group PLC:
 Mike Raybould                     +44 (0) 1782 743443    mraybould@portmeiriongroup.com
 Chief Executive

 David Sproston                    +44 (0) 1782 743443    dsproston@portmeiriongroup.com
 Group Finance Director

 Hudson Sandler:
 Dan de Belder                     +44 (0) 207 796 4133   ddebelder@hudsonsandler.com
 Nick Moore                                               nmoore@hudsonsandler.com

 Panmure Gordon                    +44 (0) 207 886 2500

 (Nominated Adviser and Broker):
 Freddy Crossley                   Corporate Finance
 Rupert Dearden                    Corporate Broking

 

 Singer Capital Markets

 (Joint Broker):         +44 (0) 207 496 3000
 Peter Steel             Investment Banking
 Rachel Hayes

 

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