REG - Portmeirion Group - Trading Update

PortmeirionAnnouncement

11/11/2021 07:20

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RNS Number : 0735S  Portmeirion Group PLC  11 November 2021

11 November 2021

Portmeirion Group PLC

(the 'Group')

 

Trading Update

Sales upgrade for FY21 - strong demand across all key markets

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, updates on recent trading and the
expected outturn for 2021.

 

Since our interim results announcement in September 2021, we have continued to
see strong sales of our brands across all key markets and have healthy order
books for the remainder of the year, including the important Christmas trading
period. We therefore now expect sales to be at least £95 million,
approximately 5% above current FY21 consensus market expectations.

 

We continue to navigate the well-publicised disruption and cost inflation
within global supply chains. The impact of these short-term pressures and
particularly significantly higher costs for container shipping rates will
limit, in the immediate short term, the upside on profit from our higher sales
in FY21. However, we believe the challenges in global shipping and labour
shortages will be short-term in nature and, with the strong trading, will not
impact current consensus market expectations of profit for the current period
or, in the longer term, our margins and ability to grow as a business.

 

We note the widespread press in recent weeks on energy intensive industries.
We have made significant progress in recent years in reducing our energy usage
and will continue to invest in 'green' initiatives as a core part of our
strategy. As a central part of our business, our ceramics factory in
Stoke-on-Trent buys energy under long term contracts. In the first half of
2021 we extended those contracts until early 2024. As a result, we do not
expect to be materially impacted by the latest rising energy prices.

 

We are pleased to see the ongoing growth in demand for our products around the
world reflecting the strong progress we are making on our strategy.

 

Mike Raybould, Chief Executive commented:

 

"We are delighted to see the strong levels of demand for our brands around the
world. Our focused strategy is transforming our business and our growth is
being driven by our ongoing development of online channels, new product
launches and expanding international markets.  Whilst there are undoubtedly
short-term cost and margin pressures within global supply chains, we are
managing any current impact on the business and we are confident in our
expectation that we can grow our operating margins over the next three years."

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

 (Nominated Adviser and Broker):   +44 (0) 207 886 2500
 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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