LONDON (Alliance News) - Portmeirion Group PLC Thursday said its pretax profit rose during 2014 after reporting growth in all its key markets and from online sales, leading the company to increasing its dividend by more than 10%.
The porcelain company reported a 8.6% rise in pretax profit for the year ended December 31, to GBP7.6 million from GBP7.0 million in 2013, driven by revenue increasing for its sixth consecutive year, said the company.
Earnings before interest, tax, depreciation and amortization totalled GBP8.9 million, a 7.4% rise from GBP8.3 million.
Revenue climbed 5.3% higher in 2014 to GBP61.4 million from GBP58.3 million, after company, whose brands include Portmeirion, Spode and Royal Worcester, said it experienced growth in its key markets, which consist of the US, UK and South Korea, a 25% increase in revenue from other export markets, and a 70% rise in online revenue.
Production also increased to its highest ever level to 150,000 best pieces per week, a 17% increase from 128,000 pieces produced per week in 2013.
As a result, Portmeirion upped its dividend for 2014 to 26.50 pence per share, more than a 10% rise from the 24.00 pence paid per share a year earlier.
"Over the last six years we have increased our total dividends by an average of 10.3% per annum compound and our total dividend is now 80% higher than it was in 2008," it said.
At the end of the year, Portmeirion reported a cash balance of GBP5.9 million.
"We are delighted to be reporting another record year. Our core values of innovation, targeted product development and operational excellence remain unchanged. We remain confident for the future; the outlook for 2015 is positive," said Non-Executive Chairman Dick Steele.
Portmeirion said a third of its sales still come from its biggest market, the US, whilst the UK market remains its second biggest market, which accounts for just over a quarter of its revenue, with a further 25% of sales coming from South Korea. Other revenue comes from other export markets, such as India, which is now the company's fourth biggest market.
The rise in online sales was primarily experienced in the UK and the US and totalled GBP2 million in 2014. In the second half of 2013, the company launched online sales in the US, which almost trebled during 2014, whilst the online UK market grew by 36%. Portmeirion said the online market "shows no sign of cooling".
"Trading in the first two months of the current year is ahead of the comparative period in 2014. However, as we have become increasingly second-half weighted, sales in these months are low in comparison to the rest of the year. We remain confident in our business model for the short and long terms," said Steele.
Portmeirion shares were up 1.4% to 900.00 pence per share on Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Portmeirion (PMP)