REG - Portmeirion Group - Interim results for the six months to 30 June 2025
Thu 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250925:nRSY7145Aa&default-theme=true
RNS Number : 7145A Portmeirion Group PLC 25 September 2025
25 September 2025
Portmeirion Group PLC
(the "Group")
Interim results for the six months ended 30 June 2025
Group Sales return to growth despite significant disruption from USA import
tariffs with an encouraging performance in South Korea and double-digit growth
in International and Wax Lyrical
Headline loss before tax higher than prior year reflecting significant
disruption from USA import tariffs
Free cash flow improved by £2.4m, however Net Debt increased by 10.4%
primarily a result of impact of US tariffs on US profitability and reflects
proactive measures taken to manage stock levels ahead of key Christmas trading
period
Portmeirion Group PLC, the global homewares brands group, announces its
results for the six months ended 30 June 2025.
Commenting on the Group's performance Mike Raybould, Chief Executive said:
"As we reported in our July trading statement, the introduction of additional
import tariffs in the US market caused immediate disruption and significant
uncertainty in our largest and most profitable market. We have acted quickly
and proactively in our response and continue to monitor the situation closely
including how it impacts consumer confidence over the Christmas period.
Against this backdrop I'm delighted that we have taken the opportunity to
accelerate our Made in Stoke-on-Trent onshoring initiative, increasing the
proportion of product supplied into the US that is made in the UK.
Outside of the US, we are pleased to see sales up 10.8% on a constant currency
basis with an encouraging performance in our South Korea market (up 31.6% on
constant currency). We anticipate growth in these markets to continue in the
second half.
We are in the early stages of following through on our transformation plan
launched in March and despite the ongoing global market uncertainty, I am
pleased with the progress being achieved. We are making decisions every day
that we believe over time will strengthen our business and deliver more
consistent and profitable results for our stakeholders.
We will continue to execute on our own transformation plan, but we are
disappointed that the UK Government has chosen not to take more immediate
steps to support UK ceramic manufacturing and respond to the calls for action.
It's been an extremely challenging few years for the industry with soaring
energy prices and wider cost pressures. Targeted support to ensure a level
playing field on energy costs with the rest of the world would be invaluable
for the British ceramics industry, allowing its globally respected brands
to compete more effectively at home and to further grow export markets thus
supporting UK jobs."
Financial overview
Key performance indicators
H1 2025 H1 2024 Change
£m £m %
Revenue 37.1 36.6 1.3
Headline profit before tax((1)) (2.8) (2.0) (40.0)
Statutory profit/(loss) before tax (2.9) (2.6) (11.5)
Headline basic earnings per share (20.50p) (15.81p) (29.7)
Statutory basic earnings/(loss) per share (21.04p) (19.18p) (9.7)
Dividends paid and proposed per share (total in respect of the year) 0.00p 1.50p (100.0)
Free cash flow (2.8) (5.2) 46.2
Net debt (14.8) (13.4) (10.4)
Headline EBITDA((1)) 0.1 0.8 (84.1)
Notes:
(1) Headline measures exclude exceptional costs.
Summary
· Revenue increased 1.3% to £37.1m (H1 2024: £36.6m) despite the
significant disruption caused by US import tariffs. On a constant
currency(( 1 (#_ftn1) )) basis, this was +2.8%.
· Excluding the USA, sales were 10.8% higher than prior year on a
constant currency(1) basis.
· South Korea performance encouraging with 31.6% growth in constant
currency. International markets, a key part of our transformation plan, up
double digit.
· Headline loss before tax of £2.8m (H1 2024 £2.0m) due to
significant disruption from USA import tariffs in our largest and most
profitable market.
· Net profitability in the USA is down $0.8m due to the impact on sales
from the increased import tariffs, uncertainty from which continues.
· Wax Lyrical returns to profit in H1, with a £0.7m improvement on
last year's loss.
· Free cash outflow improved by 46.2% to £2.8m (H1 2024: £5.2m
outflow).
· Net debt increased by £1.4m. This was driven by two factors, the
lower profit in USA resulting from increased import tariffs and higher stock
levels. The higher stock levels were in turn driven by general market caution
in response to incremental tariffs resulting in slower sales and clearance of
product. We have been proactive in delivering product earlier into the USA
market for the key Christmas '25 period to avoid a repeat of the supply chain
issues faced in 2024, however we remain cautious on the US consumer and sell
through. The businesses priority remains to reduce net debt, but whilst we do
expect some reduction in inventory levels as the normal seasonal trading
builds, uncertainty will remain until stability returns to the US import
tariff position, only then do we expect the macro environment to start to
normalise.
· Following the announcement of the business strategy and
transformation plan on 31 March 2025, no interim dividend is proposed.
· Outside of the USA, where sales are impacted by the incremental
import tariffs, Spode sales continued to grow, being 7.5% higher at constant
currency(1).
· Wax Lyrical sales are up 15.5% to £7.1m; which continues to see
positive sell through in national retailers, supported by the ongoing
expansion of listings.
· Overhead costs increased by 2.9% (£0.5m), as the business absorbed
the increases in Employer's National Insurance and National Minimum Wage,
inflationary cost increases and our planned increased investment in our
transformation plan including sales and marketing investment.
· The Group has agreed a revised £30m Revolving Credit Facility with
Barclays, which recognises the impact of US Tariffs and supports our
transformation plan whilst reflecting our highly seasonal working capital
profile due to the prominence of Christmas trading where debt peaks in
October and reduces rapidly in November and December. Leverage and
interest cover covenants have been replaced with Asset Cover and Adjusted
EBITDA with an interest margin of 3% for the 12-month period up to and
including September 2026, dropping to 1.8% thereafter until maturity
on 30th April 2027.
Current trading & outlook
· We expect the uncertainty in the USA market to continue pending more
stability and clarity on incremental tariffs, particularly with China.
However, we remain optimistic about the potential we see to grow in the medium
and long term. We are excited to have opened our 8(th) Nambe store in Dallas
in July, and a Ceramics pop up store in New Jersey in August.
· Our focus remains on the ongoing turnaround and growth of our South
Korea market which we expect to show growth on prior year. We also expect the
momentum we are seeing in our International business and Wax Lyrical brand to
continue.
· The Board remains mindful of the challenges ahead in what continues to
be an uncertain economic environment and with a significant Q4 weighting for
the business. In particular, we are closely monitoring how the US consumer
will react to higher prices during the key seasonal period.
· We remain focussed on progressing the delivery of our transformation
plan, announced on 31 March 2025.
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, Chief Executive +44 (0) 1782 743 444
Jonathan Hill, Group Finance Director +44 (0) 1782 743 444
Houston:
Kate Hoare +44 (0)204 529 0549 portmeiriongroup@houston.co.uk (mailto:portmeiriongroup@houston.co.uk)
India Spencer
Shore Capital: +44 (0) 207 408 4090
(Nominated Adviser and Joint Broker):
Patrick Castle Corporate Advisory
Lucy Bowden
Malachy McEntyre Corporate Broking
Isobel Jones
Singer Capital Markets
(Joint Broker): +44 (0) 207 496 3000
Peter Steel Investment Banking
Asha Chotai
NOTES TO EDITOR:
Portmeirion Group PLC is a global homewares brand group based in
Stoke-on-Trent, England. The Group owns six unrivalled heritage and
contemporary brands; Spode, Portmeirion, Royal Worcester, Pimpernel, Wax
Lyrical and Nambé. The Group serves markets across the world, with global
demand driven by diversified international markets including the key
geographies of North America, the UK and South Korea.
Interim Review
Financial highlights
Whilst the year started well for the Group with good progress being made
across a number of our strategic initiatives, the imposition of additional
import tariffs in the USA at the beginning of Q2 caused immediate disruption
and significant uncertainty in our largest and most profitable market.
Against this backdrop, revenue was £37.1 million for the first six months of
the year, an increase of 1.3% over the prior year (H1 2024: £36.6 million).
Excluding our USA market, sales were up 10.8% in constant currency(1).
The reduction in sales in the USA because of tariff disruption, negatively
impacted our operating performance through the lower profitability of the USA
business which at a loss of $0.6m was $0.8m lower than prior year in H1 (2024:
profit of $0.2m).
Operating costs increased from £16.6 million to £17.1 million reflecting the
increase in Employer's National Insurance and National Minimum Wage,
inflationary impact on costs and the planned investment in key functions such
as Sales and Finance to support the delivery of the Transformation Plan.
As a result of the reduced sales performance, headline loss before tax(1) was
£2.8 million (H1 2024: £2.0m). The statutory loss (including exceptional
costs) was £2.9m (H1 2024: £2.6m).
Headline basic loss per share(1) was 20.50p (H1 2024: 15.81p).
(1) Headline profit before tax, headline operating profit and headline
earnings per share excludes exceptional items (see note 3).
Operational overview
The Group's largest sales market, North America (the USA and Canada),
accounted for 34.2% of total Group revenue on a reported basis. Sales were 13%
below the first half of 2024 at £12.7 million (H1 2024: £14.5 million) and
down 10.6% at constant currency.
As previously outlined, the USA business was significantly impacted in H1,
following the announcement of substantial incremental import tariffs which
created immediate and considerable uncertainty across our customer base. Given
supply lead times and that substantial production and shipping was already in
progress, we had to act quickly to mitigate the potential risks of penal
customs tariffs. Despite this volatile situation and following our actions, we
are pleased to report that we currently expect that our US customers will
receive their stock in plenty of time for the seasonal period and earlier than
last year; ensuring our product is in-store and available for sale at the
beginning of the peak Holiday and Christmas season. However, following our
active cancellation of a number of production orders from Asia because of the
tariffs, we expect the overall volume of product supplied by the Group into
the USA market in 2025 will be markedly down on a like-for-like basis on last
year.
As a result of the tariff situation, we also made the decision to accelerate
elements of our Made in Stoke-on-Trent onshoring initiative from 24 months to
3 months. In the short term, this will require a margin investment, but we
believe this will deliver returns in the years to come. Similarly, following a
review of our USA sales strategy, we are actively withdrawing or reducing
supply of some of our brands and/or ranges to certain lower margin customers.
Our second largest market is the UK, which accounted for 36.7% of total Group
sales. Sales were 3% ahead of the prior year at £13.4 million (H1 2024:
£13.0 million) aided by further growth of Wax Lyrical (+15.5%), our home
fragrance division, which continues to see good sell through with national
retailers and further expansion of listings. This was offset by our UK
tableware business which saw sales decline 8.9%, primarily due to the timing
of an initial Spode new product launch order in the prior year and the planned
closure of a retail factory outlet following a review of our own retail
operations.
In South Korea, our third largest market accounting for 19.4% of total Group
revenue, sales grew by 29.6% to £7.2 million (H1 2024: £5.6 million), up
31.6% on a constant currency basis, reflecting a promising improvement from
its 2024 nadir as the new leadership structure and strategy deliver a strong
performance. We are seeing the benefit of supporting key customers with new
product innovation and the progress that has been made in clearing the
historic stock overhang which severely impacted the business in 2023/24 after
COVID.
In our International markets, sales grew 10.3% to £3.9 million (H1 2024:
£3.5 million), up 11.2% at constant currency, driven by new distributors in
key growth target markets and a strong pipeline of product innovation.
International markets are a key component of our transformation plan under our
'Explore and Develop' priority and a fundamental basis of our long-term growth
strategy.
As we continue to focus on our transformation plan, our commitment to new and
innovative product is stronger than ever and we are excited by the product
lines we are bringing to our customers this year and the speed and agility at
which our development process and Made in Stoke-on-Trent initiative have been
able to progress.
Balance sheet
The Group ended the first half of 2025 with net debt of £14.8 million at 30
June 2025; this compares to net debt of £13.4 million at 30 June 2024 and net
debt of £12.1 million at 31 December 2024. The increase in net debt since the
year end is largely driven by:
1. The year-to-date loss.
2. An increase in inventory as we begin to build our holdings of
seasonal product ahead of the important second half of the year which this
year includes earlier build and delivery for customers in the USA.
3. The transition to Made in Stoke-on-Trent, whilst the inventory that
has been shipped to the UK in H1 from China now incurs an incremental 30%
tariff.
Our stock balance at 30 June 2025 was £42.9 million compared to £40.0
million at 30 June 2024 and £38.2 million at 31 December 2024. The increase
since the year end is primarily driven by the seasonal increase in inventory
held as we build stock for Q3 orders around the world, with seasonal product
in transit at the half year date and home fragrance inventory built for
customer demand. As is normal, we expect to see inventory levels decrease in
the second half of the year as these orders are fulfilled and we remain
committed to reducing stock levels over the medium term.
Revolving Credit Facility
The Group has entered into a revised Revolving Credit Facility ('RCF') with
our primary lender Barclays, replacing the previous leverage and interest
cover covenants with Asset Cover and Adjusted EBITDA for the 12-month period
up to and including September 2026. This recognises the volatility in
trading caused by US tariffs, which were announced on 2nd April 2025, just
days after we launched our two-year Transformation Plan on 31 March 2025.
The modified facility carries an interest margin of 3.0% until September
2026 thereafter dropping back to the original 1.8% interest margin until
the maturity date on 30 April 2027.
We have appreciated the constructive support of our lender Barclays in working
with us to provide a revised RCF that is appropriate for our business in the
current macro environment and underpins the continued delivery of our
Transformation Plan.
Dividend
As previously outlined, the Board has not proposed an interim dividend, as our
transformation plan has prioritised growth. To fund this growth, we need to
invest which requires us to focus on the strengthening of our Balance Sheet to
reduce net debt. As a consequence of this we will reduce our interest payments
(totalling £1.6m in 2024) and reinvest in those areas that will drive growth
globally.
Environmental, Social and Governance (ESG)
In May 2023, the Group launched a new sustainability strategy and roadmap
entitled 'Crafting a Better Future' which outlines the Group's commitment to
becoming a more sustainable business. The launch represents the next level of
ambition for the Group - to ensure that we continue to reduce our impact on
the environment and support our colleagues and communities.
We continue to drive our progress on reducing our energy consumption and in H1
reduced gas and electricity usage by 11% and 9% respectively compared to the
prior year.
Further details on our ESG commitments and integration within the Group can be
found on our website, www.portmeiriongroup.com, and in the Section 172(1)
statement - Engaging with key stakeholders, Our commitment to ESG and the
Corporate Governance Statements in our Annual Report and Accounts.
Corporate governance and Board
The Group is a committed member of the Quoted Companies Alliance ("QCA") and
has chosen to apply the QCA Corporate Governance Code, complying with its
principles throughout the period. Further details can be found on our website
at www.portmeiriongroup.com/investors.
The Board keeps its composition and performance under review to ensure that we
have the appropriate skills and experience in place to deliver our strategy.
Group Strategy
TRANSFORMING OUR BUSINESS: OUR 2025-2026 PRIORITIES
In March 2025, we began the journey of transforming the business, and
announced a series of immediate priorities, which the Board believes will
position the Group to accelerate our strategy and objectives below, and
support a recovery of long-term, profitable growth. We update on the first 3
months of progress below:
1. RETURN TO GROWTH IN OUR ESTABLISHED MARKETS
We are focused on returning our three established markets - US, South Korea
and UK - to stability and onto growth after a year of disruption. In the US,
we have accelerated in-stock dates for key Christmas collections and, in South
Korea we have continued to support our distributors and retail partners to
reduce stock levels and grow sales.
In the UK we have reorganised our UK tableware sales team to further develop
key accounts including national and independent accounts. Across all markets
we will develop our customer base, introduce new collections and expand
existing collections, develop our online and eCommerce offer and exercise
better control and oversight. Also, in the UK we continue to support Wax
lyrical, our home fragrance business, in growing listings and introducing new
product lines that excite our customers.
2. FORTRESS BALANCE SHEET
The introduction of incremental import tariffs has caused an increase in net
debt at 30 June 2025. This is due to lower profit from the USA market
following disruption to sales and the build of inventory to support our
customers earlier than previous years whist also attracting an incremental
10-30% of duty increasing the value of inventory. However, we have limited the
impact on net debt through strong and careful management of working capital.
We remain laser focused on generating cash and our intent is to repay our debt
in full over the next 2 to 3 years to maintain a net cash position. As we
repay debt, we benefit from lower associated interest costs, which together
with efficiencies and growth, releases capital for investment in marketing our
premium brands in established and international markets.
3. INVEST IN OUR PREMIUM BRANDS
Our future success and prosperity depend on how we execute and develop our
premium brands globally over the next few years. We will spend more on brand
marketing in the years ahead, with certain brands seeing an anticipated c.5-8x
increase in spend from current levels as funds become available. Success
will not be instant. It requires commitment, consistency and patience, and as
we spend, we will evaluate effectiveness. In all markets we will engage
directly with the end customer to introduce our brands, earn their trust and
loyalty, and in parallel support our retail partners and brand ambassadors to
drive sales for them and our own eCommerce.
In the last 3 months, new work has included: improving how we present our
Spode brand, including the product backstamp and packaging and commencement of
an improved ecommerce delivery experience for Spode in the UK and improving
and expanding online digital assets for the upcoming Christmas season.
We intend to completely overhaul and re-energise our own retail store
portfolio in the UK and our global eCommerce over the next 12 months to
improve our customers brand experience very markedly. Increasing the
proportion of branded product 'Made in Stoke-on-Trent' is an important
commitment to our customer and our brands.
4. EXPLORE & DEVELOP
International markets are defined by 57 individual markets and accounted for
8% of Group sales in 2024, with only three of those markets contributing more
than £0.5m sales each. We have the premium brands and collections to be
successful in these markets, but until we build a consistent brand presence
and connect with our end customer, growth will be hard fought.
Out international sales team has begun the process of exploring and developing
the initial target markets with promising success in the first half of the
year. This focus will continue through the second half of the year as we
look to embed the practices to maintain the growth whilst beginning the
process of targeting the next markets identified.
We are investing in our International sales team to ensure we have the
infrastructure and capability to deliver on the strategy.
Explore & Develop is not just about geography and markets, it applies
throughout the business. We have a history of innovation across the business
and at every level. We are now exploring the value and potential of our
extensive design archives for ceramic tableware, giftware, and licensing
opportunities for other categories.
In August we were pleased to announce the appointment of Victoria Brabender as
Product Strategy Director. Victoria draws on over 20 years of experience in
product and category development having worked previously at a number of
notable brands including Emma Bridgewater. In this newly created role,
Victoria will work with our design, marketing and sales teams as we continue
to seek to develop new, beautiful products for our customers around the world.
This new role will also focus on how we best leverage our extensive design
archives both within tableware and other categories.
5. EXCELLENCE EVERYWHERE
There is real opportunity for improvement across the Group and every
colleague, at every level, across every department and geography can
contribute to our performance improvement and transform our business. We
will ingrain Excellence Everywhere in our everyday behaviours and actions and
at every level, our mindset will be one of brand first, attention to detail,
and continuous improvement everywhere. We have an open and entrepreneurial
culture and a determination to succeed. Our colleagues are encouraged to take
risks and learn from their mistakes to produce better results and generate a
positive impact.
As we challenge ourselves to ingrain Excellence Everywhere, we have focused on
upgrading talent and capability across the business including within our Sales
and Global Finance teams.
In Product, we have launched the new Spode backstamp as we embed the brand
mindset and we have significantly upgraded the design and quality of our Spode
brand packaging, enhancing the customer experience each time they connect with
the brand and product.
In manufacturing have begun the process of improving performance and
efficiency in both our Stoke-on-Trent and Lindal factories.
Outlook
We are pleased with the performance of the business outside of the USA market
in the first half of the year as we see the benefit of our focus on South
Korea and International markets showing early positive signs and expect this
to continue into H2. We do however recognise the challenging environment we
are currently operating in and are very mindful of the uncertainty created by
the introduction of incremental import tariffs for the USA market, our biggest
and most profitable market, as we head into the traditionally busier part of
our year and the key Christmas trading period. We are confident in the actions
we have taken in the US market in response to the tariff situation and, as a
result, believe it will enable us to grow in this key market in the medium and
long term.
The revised covenants in our banking facility provide the headroom and
flexibility for the Group to continue with the Transformation Plan in the
current challenging market conditions.
We are continuing the transformation of the business, started 3 months ago, as
we focus on executing our plans across sales, product, key markets and
investment in critical functions in support. We are excited by the
opportunities that lie ahead of us as we implement these changes, but we also
accept it will take time to gain significant traction and so will continue to
manage the business to deliver future benefits whilst making the right
decisions for the challenging times we are operating in.
Peter
Tracey
Mike Raybould
Non-executive Chairman Chief Executive
Unaudited Consolidated Income Statement for the six months to 30 June 2025
Notes Six months to 30 June Six months to 30 June 2024 Year to
2025 £'000 31 December 2024
£'000 £'000
Revenue 2 37,089 36,609 91,212
Operating costs (38,974) (37,857) (88,167)
Headline operating (loss)/profit(1) (1,885) (1,248) 3,045
Exceptional items 3
- restructuring costs (100) (620) (1,021)
Operating (loss)/profit (1,985) (1,868) 2,024
Interest income - - 51
Finance costs 4 (911) (770) (2,030)
Headline (loss)/profit before tax(1) (2,796) (2,018) 1,066
Exceptional items 3
- restructuring costs (100) (620) (1,021)
(Loss)/profit before tax (2,896) (2,638) 45
Tax 5 - - 299
(Loss)/profit for the period attributable to equity holders
(2,896) (2,638) 344
Earnings per share 7
Basic (21.04p) (19.18p) 2.50p
Diluted (21.00p) (19.15p) 2.49p
Dividends proposed and paid per share 6 0.00p 1.50p 1.50p
All the above figures relate to continuing operations.
(1)Headline operating loss is statutory operating loss of £1,985,000 (H1
2024: £1,868,000 operating loss) add exceptional items of £100,000 (H1 2024:
£620,000). Headline loss before tax is statutory loss before tax of
£2,896,000 (H1 2024: loss before tax of £2,638,000), add exceptional items
of £100,000 (H1 2024: £620,000).
Unaudited Consolidated Statement of Comprehensive Income for the six months to 30 June 2025
Six months
to 30 June Six months Year to
2025 to 30 June 31 December
£'000 2024 2024
£'000 £'000
(Loss)/profit for the period (2,896) (2,638) 344
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of net defined benefit pension scheme asset - - 701
Deferred tax relating to items that will not be reclassified subsequently to
profit or loss
- - (175)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations (2,049) 101 136
Other comprehensive (loss)/income for the period (2,049) 101 662
Total comprehensive (loss)/income for the period attributable to equity
holders
(4,945) (2,537) 1,006
Unaudited Consolidated Balance Sheet for the six months to 30 June 2025
30 June
2025 30 June
£'000 2024 31 December
£'000 2024
£'000
Non-current assets
Goodwill 1,749 1,749 1,749
Intangible assets 7,465 7,728 7,916
Property, plant, and equipment 13,881 14,712 14,311
Right-of-use assets 5,054 7,048 6,336
Pension scheme surplus 1,896 1,144 1,896
Total non-current assets 30,045 32,381 32,208
Current assets
Inventories 42,943 39,974 38,234
Trade and other receivables 14,426 16,868 21,048
Cash and cash equivalents 5,728 733 10,897
Total current assets 63,097 57,575 70,179
Total assets 93,142 89,956 102,387
Current liabilities
Trade and other payables (13,765) (12,906) (13,909)
Current income tax liability (56) (50) (402)
Borrowings (20,500) (14,165) (23,000)
Lease liabilities (1,895) (1,987) (2,085)
Total current liabilities (36,216) (29,108) (39,396)
Non-current liabilities
Deferred tax liability (2,547) (3,020) (2,591)
Lease liabilities (3,745) (5,627) (4,838)
Total non-current liabilities (6,292) (8,647) (7,429)
Total liabilities (42,508) (37,755) (46,825)
Net assets 50,634 52,201 55,562
Equity
Called up share capital 710 710 710
Share premium account 18,344 18,344 18,344
Investment in own shares (3,056) (3,108) (3,108)
Share-based payment reserve 30 90 114
Translation reserve 339 2,353 2,388
Retained earnings 34,267 33,812 37,114
Total equity 50,634 52,201 55,562
Unaudited Consolidated Statement of Changes in Equity for the six months to 30 June 2025
Share-based payment
Share Investment reserve
Share premium in own £'000 Translation Retained
capital account shares reserve earnings Total
£'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2024 710 18,344 (3,108) 66 2,252 36,726 54,990
Loss for the period - - - - - (2,638) (2,638)
Other comprehensive income for the period
- - - - 101 - 101
Total comprehensive loss for the period
- - - - 101 (2,638) (2,537)
Increase in share-based payment reserve
- - - 24 - - 24
Dividends paid - - - - - (276) (276)
At 30 June 2024 710 18,344 (3,108) 90 2,353 33,812 52,201
Profit for the period - - - - - 2,982 2,982
Other comprehensive income for the period
- - - - 35 526 561
Total comprehensive income for the period
- - - - 35 3,508 3,543
Dividends paid - - - - - (206) (206)
Increase in share-based payment reserve
- - - 24 - - 24
At 31 December 2024 710 18,344 (3,108) 114 2,388 37,114 55,562
Loss for the period - - - - - (2,896) (2,896)
Other comprehensive loss for the period
- - - - (2,049) - (2,049)
Total comprehensive loss for the period
- - - - (2,049) (2,896) (4,945)
Increase in share-based payment reserve
- - - 17 - - 17
Transfer on exercise or lapse of options - - - (101) - 101 -
Shares issued under employee share schemes - - 52 - - (52) -
At 30 June 2025 710 18,344 (3,056) 30 339 34,267 50,634
Unaudited Consolidated Statement of Cash Flows for the six months to 30 June 2025
Six months Year to
to 30 June 2025 Six months 31 December
£'000 to 30 June 2024
2024 £'000
£'000
Operating (loss)/profit (1,985) (1,868) 2,024
Adjustments for:
Depreciation of property, plant, and equipment 593 625 1,288
Depreciation of right-of-use assets 1,025 1,073 2,225
Amortisation of intangible assets 389 317 730
Charge for share-based payments 17 24 48
Exchange (loss)/gain (1,619) 35 (1)
Operating cash flows before movements in working capital (1,580) 206 6,314
Increase in inventories (4,709) (4,018) (2,278)
Decrease/(increase) in receivables 6,620 2,185 (1,993)
(Decrease)/increase in payables (143) (954) 48
Cash generated from/ (used by) operations 188 (2,581) 2,091
Interest paid on borrowings (726) (558) (1,618)
Interest paid on lease liabilities (185) (212) (412)
Income tax paid (344) (111) (55)
Net cash (outflow)/inflow from operating activities (1,067) (3,462) 6
Investing activities
Purchase of property, plant, and equipment (341) (312) (569)
Purchase of intangible assets (244) (507) (1,070)
Net cash outflow from investing activities (585) (819) (1,639)
Financing activities
Dividends paid - (276) (482)
Capital element of lease payments (982) (953) (2,058)
(Repayment)/drawdown of short-term borrowings (2,500) 6,357 17,192
Repayments of borrowings - (1,000) (3,000)
Net cash (outflow)/inflow from financing activities (3,482) 4,128 11,652
Net (decrease)/increase in cash and cash equivalents (5,134) (153) 10,019
Cash and cash equivalents at beginning of period 10,897 888 888
Effect of foreign exchange rate changes (35) (2) (10)
Cash and cash equivalents at end of period 5,728 733 10,897
Notes to the Interim Financial Information
1. Basis of preparation
The financial information included in the interim results announcement for the
six months to 30 June 2025 was approved by the Board on 25 September 2024.
The interim financial information for the six months to 30 June 2025 has not
been audited or reviewed and does not constitute statutory accounts within the
meaning of Section 434 of the Companies Act 2006. The Company's statutory
accounts for the year ended 31 December 2024, prepared in accordance with
international accounting standards in conformity with the requirements of the
Companies Act 2006.
The interim financial information has been prepared in accordance with IFRS on
the historical cost basis, except that some derivative financial instruments
are stated at their fair value. The same accounting policies, presentation and
methods of computation are followed in the interim financial statements as
were applied in the Group's last audited financial statements for the year
ended 31 December 2024.
Statutory accounts for the year ended 31 December 2024 have been delivered to
the Registrar of Companies.
Going concern
At 30 June 2025, the Group's bank facilities comprised a £30m revolving
credit facility maturing in August 2028. The facility is subject to quarterly
financial covenants, including a minimum interest cover ratio and a maximum
leverage ratio. During the period, the Group faced significant headwinds and
uncertainty from the US market following the introduction of incremental
import tariffs that have applied to our products supplied from around the
world into the US Market, including a significant volume from China.
Following the period end the Group proactively engaged with Barclays and as a
result, the covenants attached to the facility have been revised for 15 months
through to September 2026, replacing the previous EBITDA leverage and interest
cover covenants with Asset Cover and Adjusted EBITDA which are measures more
appropriate for our working capital profile. In addition, the maturity date of
the facility is now 30(th) April 2027. These revised covenants provide the
Group with greater flexibility as we deliver our Transformation Plan within
the current market conditions.
The Directors, having made suitable enquiries and analysis of the accounts,
consider that the Group has adequate resources to continue in business for the
foreseeable future. In making this assessment, the Directors have considered
the Group's current trading performance and available banking facilities with
appropriate headroom in facilities and financial covenants.
Critical accounting judgements and key sources of estimation uncertainty
The preparation of condensed consolidated interim financial statements
requires management to make judgements, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets and
liabilities, income and expense. Actual results may differ from these
estimates.
The significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty were the
same as those detailed on page 76 of the Group's 2024 Financial Statements.
Notes to the Interim Financial Information
Continued
2. Segmental analysis
The following tables provide an analysis of the Group's revenue by operating
segment and geographical market, irrespective of the origin of the products:
Six months Six months Year to
to 30 June to 30 June 31 December 2024
Operating segment 2025 2024 £'000
£'000 £'000
UK 24,396 22,024 51,487
North America 12,693 14,585 39,725
37,089 36,609 91,212
Six months Six months Year to
to 30 June to 30 June 31 December 2024
Geographical market 2025 2024 £'000
£'000 £'000
United Kingdom 13,387 12,990 32,394
North America 12,602 14,528 39,532
South Korea 7,205 5,558 11,817
Rest of the World 3,895 3,533 7,469
37,089 36,609 91,212
3. Exceptional items
Six months Six months Year to
to 30 June to 30 June 31 December 2024
2025 2024 £'000
£'000 £'000
Restructuring costs 100 620 1,021
100 620 1,021
Exceptional costs relate to re-organisations of the Group in both 2025 and
2024. All of these costs are exceptional in nature and non-recurring.
4. Finance costs
Six months Six months Year to
to 30 June to 30 June 31 December 2024
2025 2024 £'000
£'000 £'000
Interest paid 726 558 1,618
Interest on lease liabilities 185 212 412
911 770 2,030
Notes to the Interim Financial Information
Continued
5. Taxation
Tax for the interim period is charged at 0% (year to 31 December 2024: 25%)
due to a loss being incurred during the period. The expected weighted average
annual corporation tax rate for the year is 25%.
6. Dividend
The Directors recommend that no interim dividend for 2025 (2024: 1.50p) per
ordinary share be paid.
7. Earnings per share
Six months Six months Year to
to 30 June to 30 June 31 December 2024
2025 2024 £'000
£'000 £'000
Earnings
Earnings for the purpose of basic and diluted earnings per share, being profit (2,896) (2,638) 344
for the period attributable to equity holders
Six months Six months Year to
to 30 June to 30 June 31 December 2024
2025 2024 £'000
£'000 £'000
Number of shares
Weighted average number of shares for the purpose of basic earnings per share
13,763,712 13,759,282 13,759,282
Weighted average dilutive effect of conditional share awards
29,904 18,231 28,681
Weighted average number of shares for the purpose of diluted earnings per 13,793,616 13,777,513 13,787,963
share
The calculation of basic and diluted headline earnings per share is based on
the following data:
Six months Six months Year to
to 30 June to 30 June 31 December 2024
2025 2024 £'000
£'000 £'000
(Loss)/profit for the period attributable to equity holders (2,896) (2,638) 344
Add back/(deduct):
Exceptional items 100 620 1,021
Tax effect of exceptional items (25) (158) (259)
Headline earnings (2,821) (2,176) 1,106
Notes to the Interim Financial Information
Continued
8. Reconciliation of earnings before interest, tax, depreciation and
amortisation (EBITDA)
Headline EBITDA
Six months Six months Year to
to 30 June to 30 June 31 December 2024
2025 2024 £'000
£'000 £'000
Headline operating (loss)/profit (1,885) (1,248) 3,045
Add back:
Depreciation 1,618 1,698 3,513
Amortisation 389 317 730
Headline earnings before interest, tax, depreciation and amortisation 122 767 7,288
EBITDA
Six months Six months Year to
to 30 June to 30 June 31 December 2024
2025 2024 £'000
£'000 £'000
Operating (loss)/profit (1,985) (1,868) 2,024
Add back:
Depreciation 1,618 1,698 3,513
Amortisation 389 317 730
Earnings before interest, tax, depreciation and amortisation 22 147 6,267
9. Retirement benefit schemes
Defined benefit scheme
The defined benefit obligation as at 30 June 2025 is calculated on a
year-to-date basis, using the latest actuarial valuation as at 31 December
2024.
There have been no significant market fluctuations and significant one-off
events, such as plan amendments, curtailments and settlements that have
resulted in an adjustment to the actuarially determined pension cost since the
end of the prior financial year.
The Group has made no contributions to the scheme during the period (2024:
£nil).
10. Related party transactions
The Group's related parties are as disclosed in the Report and Accounts for
the year ended 31 December 2024. There were no material differences in related
parties or related party transactions in the six months ended 30 June 2025
except for transactions with key management personnel.
11. Availability of document
A copy of the interim results will shortly be available on the Company website
at www.portmeiriongroup.com.
1 (#_ftnref1) Constant currency reflects the like-for-like performance by
removing the impact of any changes in currency rates across the periods. It
is calculated by adjusting the current year value to reflect the average
currency rate used for the prior period thereby removing the impact of
currency in any comparative.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR KZGZLNDGGKZMRecent news on Portmeirion
See all newsREG - Portmeirion Group - Interim results for the six months to 30 June 2025
AnnouncementREG - Portmeirion Group - H1 2025 TRADING UPDATE
AnnouncementREG - Portmeirion Group - Exercise of Options, PDMR & Voting Rights
AnnouncementREG - Portmeirion Group - AGM Resolutions
AnnouncementREG - Portmeirion Group - Annual Report & Accounts and Notice of AGM
Announcement