Portmeirion Group PLC shares fell on Tuesday, after it swung to annual loss caused by falling revenue and a one-off impairment charge, but said its balance sheet remained robust and still has confidence in its long-term strategy.
Shares in the Stoke-on-Trent, England-based pottery maker fell 8.1% to 243.55 pence each in London on Tuesday afternoon.
Portmeirion reported a swing to a pretax loss in 2023 of £8.5 million from a profit of £7.0 million in 2022.
Revenue fell 7.3% to £102.7 million from £110.8 million, while it also booked a one-off impairment charge of £10.9 million in its home fragrance division.
Portmeirion said revenue was in line with market expectations and marked a ‘resilient’ performance against ‘tough’ trading conditions in the US and South Korea.
It stressed its balance sheet remained ‘robust’, with net debt falling 22% to £7.9 million at December 31 from £10.1 million and noting ‘significant’ headroom within current borrowing facilities.
Portmeirion declared a final dividend of 2.0p per share, taking its total annual dividend to 5.5p, down 65% from 15.5p in 2022.
Looking ahead, Chief Executive Officer Mike Rayboud commented: ‘We expect US and UK markets will show modest growth in 2024 and are encouraged by our current US Christmas advance orders that are significantly ahead of last year. As we highlighted in January, Asian markets remain challenging, particularly sales in South Korea which are expected to reduce in the first half of 2024 as stock levels in channels take longer to sell through.
‘We will look to mitigate ongoing market conditions through an exciting line up of new product launches in 2024 targeted at both supporting our key heritage ranges and reaching new parts of the market. We have been pleased with the initial reaction from customers at trade shows and at our showrooms through the first quarter of the year...We are pleased with the continued strategic progress we have made and remain confident in our long term strategy to grow sales and improve operating margins.’
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