Portmeirion issues profits warning

The company said overall revenues for the first six months of 2008 were 5.6% above last year. However, in common with other consumer facing companies, Portmeirion had experienced difficult trading conditions in the USA during 2008. This, combined with increased fuel costs in its UK production facility, has led to profits for the 6 months to 30 June being below management's expectations. The company said it had not yet seen evidence of a slow down in sales in the group's UK or rest of the world markets. However, given the prevailing economic climate in the UK, it believes that it is prudent to also expect some impact on trading in these territories during the second half of 2008. As a result, performance for the year ending 31 December is likely to be below management's expectations, it warned. The company’s results for the six months ended 30 June showed revenues of £15.3 million up 5.6% on comparative period of 2007 (£14.5 million) and an operating profit of £508,000 (2007 - £ 838,000) Chairman Dick Steele said: "Total revenue growth of 5.6% is creditable given the prevailing economic conditions and a tough US market which in the past has acted as a leading indicator for world markets in our sector. We continue to improve our manufacturing capabilities against the backdrop of rising energy costs.