(Alliance News) - Portmeirion Group PLC on Thursday reported a rise in its interim revenue, despite suffering a narrowed profit due to higher operating costs.
Shares were down 5.4% at 334.80 pence each around Thursday midday in London.
For the six months that ended on June 30, the Stoke-on-Trent, England-based pottery company said revenue rose by 5.6% to GBP45.5 million from GBP43.1 million a year earlier.
Portmeirion said group sales were 30% ahead of pre-pandemic levels in 2019, which it said demonstrates the expansion in its customer base.
Headline operating profit amounted to GBP2.0 million, up 18% from GBP1.7 million a year ago, leaving the company's operating margin at 4.3% compared to 4.0%.
Pretax profit, however, declined by 17% to GBP1.0 million from GBP1.2 million, as operating costs rose by 5.1% to GBP43.5 million from GBP41.4 million.
Chief Executive Mike Raybould said: "Whilst we are not immune to the significant macro headwinds initiated by the war in Ukraine, our brands remain in strong demand around the world, and we have seen encouraging year on year growth continue through July and August."
Looking ahead, Portmeirion said it expects sales to be at least in line with "record sales year" in 2021, with profit also ahead of the prior year. In 2021, the company reported a revenue of GBP106.0 million and a pretax profit of GBP6.0 million.
Portmeirion declared an interim dividend of 3.50 pence per share, compared to none a year ago.
By Xindi Wei; xindiwei@alliancenews.com
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Portmeirion (PMP)