Ceramics group commits to home manufacture

Announcing all time record results for 2007, the AIM-listed plc said: “We committed to our presence in Stoke-on-Trent, where approximately two-thirds of our product is manufactured. We have a skilled and loyal workforce here and a significant investment in manufacturing. Nevertheless, we operate in global markets which demand globally sourced products and prices. It is likely that the percentage of our sales which is manufactured abroad will increase over the years, but it is also likely that our volumes through our Stoke factory will be maintained. To achieve these aims we look to increase sales. “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.” Revenue of £32 million in 2007 was an all time record for Portmeirion and pre-tax profit increased by 15.1 per cent to £3.4 million (2006: £2.96m). The sales increase would have been even higher but for the weakness of the US dollar. The Groups’ three largest markets are the US – 38% of sales, the UK – 29% and South Korea – 17%. On product design and development, Portmeiron said its heritage ranges – Botanic Garden, Pomona and Holly & Ivy – were the strengths of the Group although it was increasingly becoming known for contemporary designs such as Sophie Conran, Totally Tracy and Pimpernel. Its new product pipeline was now stronger, more diverse and more commercial than at any time during the Group’s history, it added. Approximately three per cent of revenue is spent on design and development. A new warehouse at Trentham Lakes in Stoke-on-Trent took longer than planned to start operating at an optimum level, causing some loss of revenue, but the problems were now in the past, Portmeirion said. The Group also commented on environmental issues, saying it recognised the importance of its responsibilities. 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. Chairman Dick Steele said: “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.”