Revenue and pre-tax profits are down at pottery-giant Portmeirion – marking the end of a 10 year record-breaking streak.
The latest half year results for the Stoke-based company show revenue for the six months to June 30 is £34.9 million – down 5.4 per cent from £36.9 million in 2018.
Pre-tax profit has also fallen to £0.5 million – compared to £2.1 million for the same period last year.
In May, Portmeirion bosses for 2019 after seeing sales slump by 10 per cent on last year.
The results are being attributed to a slow down in export sales.
Dick Steele, Portmeirion’s non-executive chairman, said: “Due to the seasonality of our business, the first half is always a small part of the overall group performance and is not a reliable indicator of the full year.
“We were disappointed with our May trading update due to short term challenges in our export markets in the first four months of the year. However, we are encouraged by progress made in these markets since May and pleased that other critical parts of the business are performing well and in line with our expectations.”
Despite the fall in group revenue and pre-tax profits, revenue for the 海角视频 – which is the company’s largest market – grew by 9.2 per cent.
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Since May Portmeirion has been working hard to ‘resolve short term issues in export markets’ by focusing on new product development for Korea – resulting in a strong order-book for the second half of the year.
And in July, Portmeirion announced it acquired US homeware business Nambe in a multi-million pound deal which forms part of the firm’s plans to expand its US market.
Dick added: “Early signs for the remainder of the year are positive and we expect to meet full year market expectations.
“We are also delighted with the Nambe acquisition in July which will enhance our successful US business and deliver further diversification in both geographical markets and products.
“We have a great track record of consistent top and bottom line growth and we believe our long term strategy is the correct one to continue this trend in the future.”
Portmeirion – which manufactures brands including Spode, Royal Worcester and Wax Lyrical – employs around 600 people at its London Road headquarters.
Finance experts believe Portmeirion is set for a strong recovery in the second half of the year.
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Sanjay Jha, researcher at corporate investment banking company Panmure Gordon & Co, said: "The interim report suggests that issues in export markets have been contained with swift action on protecting brand and developing new products.
“A strong balance sheet has also absorbed increased demands on working capital for efficient Christmas trading and security of supplies in the event of Brexit. These investment should yield long-term benefits.”