Earnings Release • Jul 7, 2016
Earnings Release
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RNS Number : 4801D
Portmeirion Group PLC
07 July 2016
7 July 2016
Portmeirion Group PLC ('the Company' or 'Portmeirion')
Trading Update
Portmeirion, the manufacturer and worldwide distributor of high quality homewares under the Portmeirion, Spode, Royal Worcester and Wax Lyrical brands updates on prospects for the current year.
Total revenue for 2016 is expected to be ahead of 2015, notably because of the recent acquisition of the Wax Lyrical business. However, pre-tax profits are expected to be materially below the record level of £8.6 million reported for 2015. At the Annual General Meeting we reported an unexpected decrease in demand from Asian markets. In particular, sales to South Korea still show no signs of recovery and the performance of our distributor in India has continued to be extremely disappointing. In addition we have seen negative effects on demand in the UK before and following the leave vote at the EU referendum. The potential benefits of a weaker pound have yet to translate into firm overseas orders. However, the United States continues to perform well.
The Board does believe that this is a short term setback. Accordingly, it is our current intention to increase the 2016 interim dividend by approximately 14% in line with the increase in the final dividend for 2015 and with our previously stated policy. This will mean that dividend cover for 2016 will fall marginally below our historic guideline of two times; our longer term view is that we can accommodate a temporary reduction in cover.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
Enquiries:
Portmeirion Group PLC:
Dick Steele +44 (0) 1782 744721 [email protected]
Non-executive Chairman Brett Phillips, +44 (0) 1782 744721 [email protected]
Group Finance Director
Bell Pottinger:
Dan de Belder +44 (0) 203 772 2561 [email protected]
Panmure Gordon +44 (0) 207 886 2500
(Nominated Adviser and Broker):
Freddy Crossley/ Duncan Monteith Corporate Finance
Tom Salvesen Corporate Broking
Cantor Fitzgerald Europe +44 (0) 207 894 7000
(Joint Broker):
Catherine Leftley/Marc Milmo Corporate Finance
David Banks Sales
This information is provided by RNS
The company news service from the London Stock Exchange
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