LONDON (Alliance News) - Ceramics and homesware business Portmeirion Group PLC Thursday reported higher profits for the first-half of its financial year, driven by strong revenue growth from online and the UK and US, its biggest markets.
The group declared a 10% increase in its interim dividend to 5.50 pence per share, and said it remains confident in its full-year outcome for 2014.
Portmeirion posted a pretax profit of GBP1.2 million for the six months to June compared with a profit of GBP853,000 for the same period last year.
Revenue in the period was 3.1% higher at GBP24.5 million, up from GBP23.8 million last year. It said UK sales, its biggest market, grew 7%, driven by a huge increase in online sales, up more than 50% in the period. Its second biggest market, the US, the company saw an increase of 4% in local currency, while South Korea sales were down on last year by 1.2%.
"Our second half year remains the key for our full year results. We have strong forward orders for the second half year. Our four brands are stronger than ever, our designs are world beating, our quality standards do not compromise, our financial position is robust and our people are ready," the company said in a statement.
Portmeirion said it booked costs of more than GBP300,000 in the first-half of the year, associated with the protectionist Anti-Dumping Duty imposed by the European Commission.
"We expect the full year costs to be at least double the first half figure. This cost is manageable and we continue to explore opportunities to reduce it," it said.
The group said production at its Stoke-on-Trent factory reached record levels in the first-half of the year, producing an average of 147,00 pieces per week, compared with an average of 128,000 pieces per week in the whole of 2013.
Portmeirion shares were trading 5.2% higher at 847.00 pence before midday Thursday.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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Portmeirion (PMP)