Portmeirion is fired up for export boost in new and historic pottery
PORTMEIRION is behind some of the best-known chinaware in the UK, such as Spode, Royal Worcester and Portmeirion itself.
Midas last looked at the company in December 2010, when the shares were 550p. Today, they are 1027½p and brokers believe they should hit 1200p over the next 12 to 18 months. The company, based in Stoke-on-Trent, has grown considerably, increasing sales and profits, exporting to more countries and moving into home fragrance, via the acquisition of candlemaker Wax Lyrical in 2016.
Importantly too, Portmeirion’s dividend has doubled since 2010 to 34.7p for 2017. Longtime chairman Dick Steele is a firm believer in rewarding shareholders, not least because he owns stock and has invested in the shares on behalf of his three grandchildren. Staff, numbering 760 in the UK, also receive profit-related bonuses to ensure everyone is determined to do their best for the business. The group unveiled 2017 results this month, showing revenues up more than 10 per cent to £85 million, profits up 13 per cent to £8.8 million and a 7.5 per cent increase in the dividend. Top-selling designs include Spode Blue Italian. The company also has a collection by award-winning British designer Sara Miller.
Almost 70 per cent of Portmeirion’s wares are exported and Steele has high hopes of increasing sales in North America and Asia. Online sales are expanding fast too. Midas verdict: Portmeirion has had tough times in certain markets over the years but, as it moves into more regions, it becomes increasingly resilient. Steele, 62, is determined to deliver further growth. The shares should continue to do well.
Traded on: Aim Ticker: PMP Contact: portmeiriongroup.com or 01782 744721