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Portmeirion – “in line” with expectations, but they previously reduced & sales trend doesn’t encourage

By Steve Moore | Friday 7 July 2017


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Manufacturer and distributor of homewares under the Portmeirion, Spode, Wax Lyrical, Royal Worcester and Pimpernel brands, Portmeirion Group (PMP) “updates on trading for the first half of the current year” and “is pleased to announce”… Sounds encouraging.

“Total group sales are up 16% for the six months ended 30 June 2017 relative to the same period last year”. Sounds good… “although 2016 only included two months of Wax Lyrical sales from its acquisition in May 2016. Excluding sales from Wax Lyrical, on a translated currency basis total group sales are 3% ahead of last year”. Hmmm, not so good… “and on a constant currency basis, excluding Wax Lyrical, total group sales are 1.9% down on last year”. Definitely not so good!

It is then concluded “in light of this, we continue to expect profit before tax to be in line with market expectations for the full year”. The update follows a May AGM update which noted 26% sales growth, four month adjusted translated currency sales “comfortably ahead of last year” and “level” on a constant currency basis.

There has thus been clear recent deterioration – and this follows the “in line” expectations having previously been slashed following a profit warning last summer. The shares had recovered somewhat to above 950p, but are currently heading back towards 900p on this latest trading news.

I previously concluded at 880p that I’d want further evidence of tangible, sustainable recovery before reconsidering a cautious stance. Things currently seem to be going the other way though and thus I certainly presently continue to avoid.


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