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Portmeirion is back on track

The pottery company is showing signs of recovery, as sales in the UK and US make up for a continued decline in Asia
March 15, 2018

These full-year numbers from Portmeirion (PMP) suggest the company is back on track after weak demand in Asia produced a disappointing 2016 performance. It’s not that the Asian market has necessarily improved, but sales in the UK and US have made up for the continued lacklustre performance. Sales in South Korea still fell by a third to £6.6m in 2017, but it's hoped a greater variety of products will attract new customers.

IC TIP: Buy at 1045p

Thankfully, solid sales growth of 6 per cent in the UK to £28.8m was aided by the now-complete acquisition of candle maker Wax Lyrical. Management says it's “cautiously optimistic” about the UK retail sector, despite continued challenges and uncertainty. A more positive tone was struck in the US, where sales rose 3.9 per cent following a good holiday trading period.

Analysts at Cantor Fitzgerald expect pre-tax profit of £9.6m in 2018, giving EPS of 72.6p, compared with £8.8m and 64.8p in 2017.

PORTMEIRION (PMP)   
ORD PRICE:1,045pMARKET VALUE:£114m
TOUCH:1,045-1,050p12-MONTH HIGH:1,050pLOW: 830p
DIVIDEND YIELD:3.3%PE RATIO:16
NET ASSET VALUE:411p*NET CASH:£1.6m
Year to 31 DecTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
201358.37.053.324.0
201461.47.657.626.5
201568.78.666.030.0
201676.77.859.632.3
201784.88.865.134.7
% change+11+13+9+7
Ex-div:26 Apr   
Payment:30 May   
*Includes intangible assets of £13.3m, or 122p a share