Portmeirion (PMP) manufactures about 40 per cent of its luxury crockery products at its Stoke-on-Trent factory - most of the rest imported, notably from China. And, while Portmeirion saw a fairly uninspiring second half, the overall performance for the year was solid enough - profit growth outstripped revenue growth as the group's efficiency efforts worked through.
In the UK, sales rose 8 per cent in the year to £14.9m, while South Korean sales jumped 13 per cent to £12.1m. Sales to the rest of the world rose 7 per cent to £8.26m, too - with notable progress made in India, Hungary and Norway. Still, US sales did fall 5 per cent to £20.2m - that decline in the run up to Christmas was blamed on a combination of Superstorm Sandy, the presidential elections and government budget uncertainty. Meanwhile, trading in the first two months of 2013 has been similar to last year's performance.
Beyond operational performance, the announcement in the Budget that UK ceramics companies will be exempt from the Climate Change Levy is good news for Portmeirion. That should reduce the company's annual £1.2m energy bill by around £160,000 - although both gas and electricity consumption fell last year.
Broker Panmure Gordon expects adjusted pre-tax profit of £7m for 2013, giving adjusted EPS of 50p (from £7.75m and 47.7p in 2012).
PORTMEIRION (PMP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 538p | MARKET VALUE: | £56.0m | |
| TOUCH: | 525-550p | 12-MONTH HIGH: | 560p | LOW: 445p |
| DIVIDEND YIELD: | 4.1% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 258p | NET CASH: | £7.45m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 31.8 | 1.09 | 5.80 | 14.7 |
| 2009 | 43.2 | 3.72 | 24.7 | 15.8 |
| 2010 | 51.2 | 5.25 | 34.9 | 17.4 |
| 2011 | 53.6 | 6.33 | 43.9 | 19.6 |
| 2012 | 55.5 | 6.75 | 48.4 | 21.8 |
| % change | +4 | +7 | +10 | +11 |
Ex-div: 24 Apr Payment: 24 May Aim: Household goods. | ||||
