(Alliance News) - Homewares manufacturer and distributor Portmeirion Group PLC on Thursday posted a drop in annual profit due to rising costs and said it will suspend dividend payments as part of contingency measures amid the spread of Covid-19.
Revenue in 2019 was 3.6% higher at GBP92.8 million from GBP89.6 million, though it fell 5.1% on a like-for-like basis.
Its pretax profit fell 27% to GBP7.1 million from GBP9.7 million. Operating costs rose 6.7% to GBP84.9 million and Portmeirion recorded restructuring costs of GBP688,000 and acquisition costs of GBP574,000.
Chief Executive Mike Raybould said: "We are pleased that many parts of our business continued to perform strongly in 2019. The actions we took to protect our brands in the South Korean market resulted in a reduction in our like-for-like sales and profit in 2019. However, we have strengthened our teams and processes and start 2020 stronger as a result."
The company did not propose a final dividend, meaning its total payout for the year is 8.00 pence per share, down 79% from 37.50p.
The firm explained: "Our intention was to maintain our total dividends paid and proposed for 2019 at 37.50p per share. However, due to the unprecedented uncertainty facing businesses around the world from Covid-19, we are not recommending a final dividend at this time. We will review in three months and consider declaring an additional interim dividend in line with the final dividend for 2018."
Shares in the company were 16% lower at 325.00p each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Portmeirion (PMP)