Join our community of smart investors

Portmeirion growing well in core markets

The dinnerware group maintains its appeal with devoted collectors
March 10, 2016

It might only be dinnerware but the goods on offer from pottery group Portmeirion (PMP) clearly mean more to its customers than this everyday description would suggest. Chief executive Lawrence Bryan said three-quarters of sales within its dominant Portmeirion and Spode brands were collection items and whenever new designs are launched, collectors are keen to snap up the new goods. It is perhaps this faith that has allowed the group to maintain its dividend since listing in 1988.

IC TIP: Hold at 1,135p

In the here and now, turnover in its more mature and dominant markets - the US and UK - performed strongly, with sales up 11.1 per cent and 12.5 per cent respectively on the 2014 figures. There was a hiccup in South Korea though, as sales dropped by nearly a fifth partly due to a rival entering the market with an aggressive discount strategy. Mr Bryan said the competitor had since temporarily withdrawn from the market. Sales across India, Thailand and its other territories rose by a combined 56 per cent. Online sales also continued their upward march, with the group's website is the only place all its items are stocked.

House broker Panmure Gordon expects pre-tax profit of £9.1m in 2016 leading to EPS of 68.5p compared with £8.7m and 65.2p in 2015.

PORTMEIRION (PMP)
ORD PRICE:1,135pMARKET VALUE:£123m
TOUCH:1,125-1,145p12-MONTH HIGH:1,135pLOW: 883p
DIVIDEND YIELD:2.6%PE RATIO:17
NET ASSET VALUE:338pNET CASH:£11m

Year to 31 DecTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
201153.66.343.919.6
201255.56.647.321.8
201358.37.053.324.0
201461.47.657.626.5
201568.78.666.030.0
% change+12+14+15+13

Ex-div: 21 Apr

Payment: 25 May