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PORTMEIRION GROUP PLC RESULTS FOR YEAR ENDED 31ST DECEMBER 20062 April 2008
PORTMEIRION GROUP PLC ('Portmeirion' or 'the Group') Preliminary Results for the Year Ended 31 December 2007 Financial summary
†Restated to reflect the adoption of IFRS. *See note 5
Highlights:
Financial - revenues hit an all-time record. · Total paid and proposed dividend for the year increased by 5.0% to 14.70p (2006 - 14.00p). · Revenue increased by 12.6% to £32.0 million (2006 - £28.4 million). · Proposed final dividend of 11.15p per share (2006 - 10.70p per share). · Profit before exceptional items and tax increased 15.1% to £3,411,000 (2006 - £2,964,000). · Profit before taxation of £4,419,000 (2006 - £2,687,000) · Earnings per share up by 72.8% to 30.77p (2006 - 17.81p). · Export revenue up by 13.6%. ·
Operational · New 60,000 sq.ft. warehouse at · Botanic Garden, the highly popular casual dining collection worldwide, remains the best selling range accounting for over half of revenue. · 189% growth in sales of contemporary ranges such as Sophie Conran and Totally Tracy. · Continued development of overseas sourcing to
supplement · New warehousing facilities planned for 2008 in
Dick Steele, Non-executive Chairman commented:
"We are delighted with these results, especially given the backdrop of a weak retail environment, which reflect the operational improvements we have implemented during the year. Our heritage ranges have continued to sell into new markets and at increased levels, and the contemporary ranges such as Sophie Conran continued to grow both in the level of sales and in range of products.
Importantly, in the coming year we will continue to invest in our operational and distribution capabilities and expect to see the greater cost benefits this will deliver. Through continued new product development and range extensions we plan to drive sales forward both internationally and domestically.
Current trading remains strong and we are well positioned to deliver further growth and shareholder value in 2008."
ENQUIRIES:
Portmeirion Group PLC Business Review
Dividend The Board is recommending a final dividend of 11.15p bringing the total paid and proposed for the year to 14.70p, an increase of 5% compared to 2006. We firmly believe that the value and strength of a company lies in its ability to generate long term returns for shareholders. Since we first went onto the Stock Market at an issue price of £1.80 in November 1988, we have paid dividends totalling £2.22 per share, including the final proposed 2007 dividend. The dividend will be paid, subject to shareholders' approval, on 23 May 2008, to shareholders on the register at the close of business on 25 April 2008.
Results for the year Revenue of £32 million in 2007 was an all time record for Portmeirion. The pre-exceptional profit before tax increased by 15.1% to £3.411 million (2006: £2.964 million). Our sales increase was even higher in real terms as our sales from Portmeirion USA are transacted in US dollars, and for 2007 we have translated our dollar sales at $2.0022/£ whereas in 2006 we translated at $1.8424/£. At constant exchange rates our sales increase would have been 16.3% rather than the 12.6% reported figure. As stated last year, we have enjoyed a pre-tax exceptional credit on
the disposal of a freehold site, which has been partly offset by exceptional
charges in respect of the opening of the new Cash generation was strong during the year, enabling us to invest some £1.5 million in capital expenditure, mainly in the new warehouse but also in our production facilities in Stoke. Because of the major change to our warehousing facilities, stock absorbed more cash during the year. Stock balances should move towards optimum levels in 2008. We finished the year with cash balances of £2.7 million, a £2.5 million reduction on 2006. Our pension scheme deficit, net of deferred tax, is £1.8 million under IAS19, a decrease of £2.2 million over 2006. We made a cash contribution of £0.348 million to our final salary scheme, closed in 1999, during the year. The Groups' three largest markets are the United States - 38% of sales
(2006: 39%), United Kingdom - 29% of sales (2006: 30%) and South Korea - 17% of
sales (2006: 20%). Both the
Product design and development We are widely recognised by our heritage ranges - Botanic Garden, Our new product pipeline is now stronger, more diverse and more
commercial than at any time during the Group's history. It seeks to serve a number of different
consumer markets, United States, United Kingdom and South Korea being our three
largest. To serve such markets we have
to have a global outlook and global sourcing feeding into a centralised product
development department based in
Manufacturing and sourcing We are committed to our presence in We are constantly striving to increase the efficiency and capabilities of our Stoke factory, and indeed of our manufacturing partners overseas. Efficiencies at Stoke have continued to improve in 2007.
Warehousing We opened our new warehouse at We are intending to undertake a similar warehouse move in the
Environment The Group recognises the importance of its environmental responsibilities, monitors its impact on the environment and designs and implements policies to reduce damage that might be caused by the Group's activities. Initiatives designed to reduce the Group's impact on the environment include the recycling of manufacturing waste, reducing its carbon emissions and utilisation of recyclable packaging materials. Examples of our environmental commitment include recycling our fired ceramic waste in ceramic tiles produced by a local manufacturer and recycling our used plaster of paris moulds in the cement industry. As part of our continuing commitment to recycling we are investigating the feasibility of using our unfired ceramic waste (our only major waste stream currently not recycled) as a raw material component in the brick industry. Portmeirion's commitment to reducing our carbon emissions is evidenced by our being party to a Climate Change Agreement since 2000. During this period, Portmeirion has reduced its Specific Primary Energy Consumption from 34,522 kWh/tonne to the level, in 2007, of 22,558 kWh/tonne. This represents an improvement in energy efficiency of 35% and a reduction in CO2 emissions of 12,344 tonnes, a 12% reduction.
Corporate Governance As an AIM listed company we are not subject to the full rigour of the corporate governance regime, nevertheless we comply more fully than required using the rules which apply to fully listed companies as guidance. We have deliberately chosen not to extend our Board by the addition of another non-executive director, nor to shuffle the committee positions around in line with what would constitute full compliance, as we consider that to do so would be of no significant benefit to shareholders.
Outlook The Group will continue with its established policies for growth. We will focus on developing the brand with
the emphasis on product design and development, particularly contemporary
ranges and continued extensions to our heritage patterns. Commercial design is at the heart of
everything we do. We will use vigorous
efforts to expand our existing customer base worldwide and continue to look for
new retail outlets in the In 2008 we will be focusing specifically on maximising the benefits
from our new In summary, we will continue to drive growth in sales, return on sales and dividend payments. Current trading remains strong and we are well positioned to deliver further growth and shareholder value in 2008.
Richard Steele Non-executive Chairman Chief Executive
CONSOLIDATED INCOME STATEMENT For the year ended 31 December 2007
All the above figures relate to continuing operations.
CONSOLIDATED BALANCE SHEET As at 31 December 2007
CONSOLIDATED CASH FLOW STATEMENT For the year ended 31 December 2007
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