(Alliance News) - Crockery maker Portmeirion Group PLC held its interim dividend Thursday on improving performance despite profit and revenue falling after a weak start to the year.
For the six months ended June, pretax profit narrowed 94% to GBP130,000 from GBP2.1 million a year prior. This was after revenue fell 5.4% to GBP34.9 million from GBP36.9 million.
Profit performance was hurt by GBP395,000 in exceptional costs associated with the acquisition of US homewares maker and retailer Nambe LLC. Headline pretax profit - excluding exceptional costs - narrowed 75% to GBP525,000 from GBP2.1 million the year prior.
Portmeirion proposed a 8.0 pence per share interim dividend, unchanged on the year prior.
"Due to the seasonality of our business, the first half is always a small part of the overall group performance and is not a reliable indicator of the full year," Portmeirion Chair Dick Steele said.
"We were disappointed with our May trading update due to short-term challenges in our export markets in the first four months of the year," Steele added. "However, we are encouraged by progress made in these markets since May and pleased that other critical parts of the business are performing well and in line with our expectations."
"Early signs for the remainder of the year are positive and we expect to meet full year market expectations," Steele continued. "We are also delighted with the Nambe acquisition in July which will enhance our successful US business and deliver further diversification in both geographical markets and products. We have a great track record of consistent top and bottom line growth and we believe our long term strategy is the correct one to continue this trend in the future."
Shares in Portmeirion were 1.7% lower at 973.00 pence in London on Thursday.
Portmeirion (PMP)