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Online sales buoy Portmeirion

RESULTS: Profits soared at crockery maker Portmeirion amid rising online sales and a reduction in Chinese anti-dumping duties
August 1, 2014

Consumer confidence in America and the UK continues to improve, contributing to rising sales and profits at crockery maker Portmeirion (PMP). Based in Stoke-on-Trent, the group sells products from earthenware to glassware and place mats. It remains on track to grow EPS this year by a respectable, if unspectacular, 6 per cent.

IC TIP: Hold at 830p

Profit before tax somewhat misleadingly climbed 42 per cent in the first six months. But management was quick to point out this was mainly due to weak comparators last year, when the EU imposed stiff anti-dumping duties on Chinese-made tableware, denting Portmeirion’s first-half profits. "We’re back to where we should be", chief executive Lawrence Bryan told us. The company still pays some duties but has mitigated the effects by raising prices slightly, moving production within China to factories with lower duty rates, and sourcing more outside of China.

Portmeirion is also benefiting from vertiginous growth in online sales, albeit from a low base. UK online sales soared more than 50 per cent in the first half to £0.5m, while US online sales totalled $0.4m (£0.2m) even though the website only launched in the second half of last year.

Broker Panmure Gordon kept its forecasts unchanged at 56p of EPS for 2014, rising to 58.8p next year (From 52.8p in 2013).

PORTMEIRION (PMP)

ORD PRICE:830pMARKET VALUE:£89m
TOUCH:825-835p12-MONTH HIGH:830pLOW: 633p
DIVIDEND YIELD:3.0%PE RATIO:15
NET ASSET VALUE:277pNET CASH:£2.7m

Half-year to 30 JunTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
201323.80.96.05.0
201424.51.29.25.5
% change+3+42+53+10

Ex-div: 3 Sep

Payment: 1 Oct