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Portmeirion plunges on profit warning

Troubles in export markets – especially South Korea – have led the group to warn on sales and profits
Portmeirion plunges on profit warning

Shares in Portmeirion (PMP) lost almost a quarter of their value following the latest trading update, in which management warned that full-year sales and profits were likely to be “significantly below” market expectations.

IC TIP: Hold at 911p

The group has seen lower-than-expected export market sales, particularly in its South Korean business. The division accounted for a little over 9 per cent of revenues at the latest full-year results, but management said the deterioration was such that group sales in the four months to April 2019were down 10 per cent on the prior year.

The update comes as a surprise, as performance in the South Korean business had previously appeared to be improving. Indeed, sales rose by a quarter in 2018 following an increased focus on product development. Management intends to maintain this strategy, but warned it would take time to bear fruit.