Double blow for Portmeirion profits

POTTERY group Portmeirion said profits had more than halved after being hit by the double blow of foot-and-mouth and 11 September. The farm epidemic hit sales in the first half of 2001, as overseas tourists decided against trips to the UK and the number of buyers for Portmeirion's ceramic and glassware products fell.

But the Stoke-on-Trent-based company was rocked further by the events of 11 September and sales in the US, which normally account for almost half of all group revenues, slid 12% during 2001. It meant group turnover for the year to 31 December slipped from £30.7m to £29.6m while pre-tax profits plunged 52% to £1.6m.

But despite the tough trading conditions of 2001, Portmeirion remained upbeat for the coming months. It said there had been a 'steady and sustained' recovery in the second half, led by strong sales in the UK. The group has also been targeting the Asian market and said the strategy was 'showing rewards' with sales up 49% on the previous year.

Chairman Arthur Ralley said: 'Clearly we have the opportunity for further substantial growth in this area and our long-term commitment to achieve this is demonstrated by the establishment of our subsidiary, Portmeirion Japan.'

Mr Ralley conceded that overall, it was 'appropriate' to be cautious about the group's prospects for 2002. But he added: 'We have started the year with sales continuing to improve and a cost base that takes account of those economic uncertainties. Given a steady improvement in the US market, now the major retailers have largely finished destocking, I expect a reasonable recovering in group prospects this year.'

Shareholders will receive an total dividend of 13.25p per share, unchanged on last year's payout.