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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Portmeirion Group Plc | LSE:PMP | London | Ordinary Share | GB0006957293 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 228.00 | 220.00 | 236.00 | 228.00 | 228.00 | 228.00 | 1,019 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Misc Homefurnishings Stores | 111.09M | 5.56M | 0.4037 | 5.65 | 31.37M |
From Apr 2019 to Apr 2024
TIDMPMP
RNS Number : 7662H
Portmeirion Group PLC
15 March 2018
15 March 2018
Portmeirion Group PLC ('Portmeirion' or 'the Group')
Preliminary results for the year ended 31 December 2017
Financial summary
Hot Features
Premium
2017 2016 Increase
GBPm GBPm %
Revenue 84.8 76.7 10.6
Pre-tax profit 8.8 7.8 13.0
EBITDA 11.0 9.7 12.9
Basic earnings per share 65.07p 59.60p 9.2
Dividends paid and proposed
per share in respect of the
year 34.66p 32.25p 7.5
Highlights:
Financial
-- Ninth consecutive year of record Group revenue which increased by 10.6% to GBP84.8 million (2016: GBP76.7 million).
-- Profit before tax increased by 13.0% to GBP8.8 million (2016: GBP7.8 million). -- EBITDA increased by 12.9% to GBP11.0 million (2016: GBP9.7 million). -- Earnings per share increased by 9.2% to 65.07p (2016: 59.60p).
-- Total dividends paid and proposed for 2017 increased by 7.5% to 34.66p per share (2016: 32.25p).
-- Strong cash generation with a GBP3.9 million improvement in net cash resulting in a positive balance of GBP1.6 million (2016: net borrowings of GBP2.3 million).
-- Operating margin increased to 10.7% (2016: 10.4%).
Operational
-- Strong progress on growth and diversification in export markets.
-- Completed integration of Wax Lyrical business, including the launch of over 200 home fragrance products under the existing Portmeirion Group brands.
-- Senior management team strengthened with the appointments of Mike Raybould as Group Finance Director, Mick Knapper as Operations Director, Moira MacDonald as Company Secretary and Andrew Andrea as a Non-executive Director.
Dick Steele, Non-executive Chairman commented:
"We are delighted to be reporting a ninth consecutive year of record revenue and a record profit before taxation. Our core values of innovation, targeted product development and operational excellence remain unchanged, and we are pleased to report on the successful integration of the Wax Lyrical home fragrance business into the Group. Trading in the first two months of the current year is ahead of the comparative period in 2017. The outlook for 2018 is positive and we remain confident for the future."
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
ENQUIRIES:
Portmeirion Group
PLC:
Dick Steele +44 (0) 1782 steele_clan@msn.com
744 721
Non-executive Chairman
Mike Raybould +44 (0) 1782 mraybould@portmeiriongroup.com
744 721
Group Finance Director
Hudson Sandler:
Dan de Belder +44 (0) 207 ddebelder@hudsonsandler.com
796 4133
Panmure Gordon
(Nominated Adviser +44 (0) 207
and Broker): 886 2500
Freddy Crossley/ Corporate
Ryan McCarthy Finance
James Stearns Corporate
Broking
Cantor Fitzgerald
Europe +44 (0) 207
(Joint Broker): 894 7000
Catherine Leftley Corporate
/Marc Milmo Finance
Alex Pollen Sales
Portmeirion Group PLC
Chairman and Chief Executive Review
Portmeirion is pleased to report a strong trading performance in the year under review, which culminated in a ninth consecutive year of record sales and earnings being driven to their highest ever levels. This outcome, combined with our confidence in future trading performance, has enabled us to increase our dividend for the ninth successive year. We have reported revenue growth in our core UK and USA markets, but also a decrease in South Korea which is going through a period of rebuilding. However, the Group's other export markets showed excellent growth with sales to 'rest of the world' up 54.4% over 2016. The growth across the Group has benefitted from diversification into new products and new markets, including the integration of our Wax Lyrical home fragrance business.
Financial highlights
Revenue was GBP84.8 million for the year, an increase of 10.6% over the previous year (2016: GBP76.7 million). At a constant US dollar exchange rate our revenue increased by 8.4%. We enjoyed a full year of Wax Lyrical Limited ('Wax Lyrical') sales consolidated within the total revenue of GBP84.8 million compared to eight months of the previous financial year; on a like-for-like basis this reduces the revenue growth to 5.6%.
Profit before taxation was GBP8.8 million, an increase of GBP1.0 million or 13.0% on the previous year. Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 12.9% to GBP11.0 million in the year (2016: GBP9.7 million). Both of these figures represent all-time records for Portmeirion.
Basic earnings per share increased by 9.2% to 65.07p per share (2016: 59.60p), while dividends have increased by 7.5%, with dividend cover of 1.85 times maintained just below our long term target of two times.
Dividend
The Board is committed to a progressive dividend policy and aims to maintain a sustainable and appropriate level of dividend cover. Our policy is to increase the interim dividend each year by the same percentage as the final dividend of the preceding year, subject of course to prevailing conditions. The Group will look to increase our dividends whenever appropriate driven by our results, cash balances, future prospects and other investment requirements.
The Board is recommending a final dividend of 27.26p (2016: 25.25p) per share bringing the total paid and proposed for the year to 34.66p (2016: 32.25p) per share, an increase of 7.5% over the total amounts paid in respect of 2016. This is an 8.0% increase over the final dividend for 2016.
The dividends paid and proposed for 2017 are projected to be covered 1.85 times by earnings (2016: 1.85 times). The Board continues to consider that a level of dividend at or close to two times covered is an appropriate and sustainable level for the business.
Corporate governance
As an AIM listed company we recognise and welcome the benefits of corporate governance requirements over and above those required by AIM and we implement them when we can see tangible shareholder and stakeholder benefits. We are members of the Quoted Companies Alliance and believe good corporate governance provides incremental shareholder value.
We consider our approach to be proactive in a number of areas, in particular in seeking re-election of all continuing directors each year and in our shareholder engagement.
Senior management
The management team has been significantly strengthened during the year. Mike Raybould joined the board on 26 May 2017 as Group Finance Director, and also has management responsibility for Wax Lyrical. Mick Knapper was promoted to the Group board as Operations Director on 1 March 2017; he is responsible for production, sourcing, logistics, information systems and human resources and has been with the Group since 1998. Andrew Andrea was appointed as a Non-executive Director on 20 June 2017, bringing wide-ranging experience in finance and consumer brands. Moira MacDonald, who joined the Group in 2007, was promoted to Company Secretary on 1 March 2017.
We are delighted with these promotions and appointments, the business is now benefitting from the fresh perspective that such changes bring.
Operational overview
Overall revenue increased by 10.6% to GBP84.8 million (2016: GBP76.7 million). The Group benefitted from a full 12 months ownership of Wax Lyrical in 2017, together with good underlying growth in our core ceramics business.
Geographical performance
From a geographical perspective, the United Kingdom has become our largest market following the acquisition of Wax Lyrical, due to the majority of their sales being in that market. Total UK sales were GBP28.8 million (2016: GBP27.1 million). The domestic retail sector continues to be challenging and uncertain, despite this we remain cautiously optimistic in this market. Our expanded product offering and encouraging performance of some of our ranges such as the growing Royal Worcester Wrendale Designs collection and the new Sara Miller London Portmeirion line provides this optimism.
The United States, our second largest market, reported an increase in revenue of 3.9% in translated figures, which is equivalent to a decrease of 1.2% in local currency. We remain confident about the prospects in the USA, with the Group's sales seeing double digit growth in the second half of the year, including the important Thanksgiving and Christmas period, recovering from a disappointing first half.
Sales into South Korea fell by 32.1% in 2017 to GBP6.6 million (2016: GBP9.7 million). This market continues to prove challenging and we are working closely with our exclusive distributor in South Korea to diversify our product portfolio and target new customers in order to rebuild sales.
Sales to the rest of the world showed the most significant growth during the year, increasing by 54.4% to GBP24.2 million (2016: GBP15.7 million). Growing sales into Europe and some Asian markets such as Hong Kong and Taiwan has reduced our reliance on sales in our three major markets and has been aided by sales of home fragrance product into our existing distribution channels.
Online sales continued to grow during the year, with a strong second half sales growth of over 13% particularly pleasing. This channel remains an area of focus for 2018.
Segmental performance
Following the acquisition of Wax Lyrical in 2016, the Group will now report under three business segments: Home Fragrance, Portmeirion Group UK Limited ('Portmeirion UK') and Portmeirion Group USA, Inc. ('Portmeirion USA'). The home fragrance segment performance will include all home fragrance sales made within the Group. Portmeirion UK and Portmeirion USA performance will refer to ceramic sales only.
Portmeirion UK
Portmeirion UK, the main trading entity of the Group, had a strong performance during the year, driven by new product launches and diversification into new export markets. Sales grew by 9.1% to GBP46.1 million (2016: GBP42.3 million).
Production in our UK factory reduced slightly during the year compared to 2016, but demand steadily grew throughout 2017 and we are now back at a level that will improve efficiency going forward. This is essential in order for the business to achieve its long term strategic goals as manufacturing efficiency translates to cost competitiveness.
Portmeirion USA
The USA remains our largest export market and is serviced by our trading subsidiary, Portmeirion USA. The company has an office in New Jersey, showrooms in New York and a national warehousing and logistics centre in Connecticut.
Sales at Portmeirion USA have grown by 3.7% in the year to GBP24.7 million (2016: GBP23.8 million). This growth has largely been driven by the lower US dollar exchange rate compared to sterling, as underlying US dollar sales are marginally below prior year. This performance was pleasing given a weak first half and meant that second half sales were 12.9% higher than 2016. The H2 performance demonstrates that this market is starting to show signs of growth.
Home fragrance
The Group acquired Wax Lyrical on 4 May 2016 and therefore revenue benefitted from a full year of sales in 2017. Home fragrance sales were GBP13.9 million, showing growth of 32.0% over the prior year and including over GBP1 million of home fragrance sales through existing Portmeirion UK and Portmeirion USA distribution channels.
The Wax Lyrical business responded well to the increased production demands during the year and has the capacity to grow in line with the Group's targets.
We are pleased with the integration benefits obtained so far and are optimistic about the potential for further revenue synergies and ongoing cross-product development.
Products and brands
We have five major brand names - Portmeirion, Spode, Royal Worcester, Wax Lyrical and Pimpernel. Supporting our brands is central to our business strategy and we continue investing in both our historical patterns and key new launches.
Portmeirion Botanic Garden, launched in 1972, is a major pattern with worldwide recognition; it is hard to identify any other tableware pattern with such a level of sales. On an ongoing basis Botanic Garden generates over GBP30 million of sales per annum and there are over 50 million pieces of Botanic Garden in use worldwide today. We are ever-vigilant of imitators to Botanic Garden, or indeed any of our other patterns, and hardnosed in legal protection.
Product development is a vital component of brand value. We continue to develop, extend, refresh and refine our existing patterns and products so as to retain and build customer appeal. During 2017 we launched a number of new ranges including Sara Miller London Portmeirion, which received a strong reception and is already generating a positive sales return. We also launched over 200 new home fragrance products under the existing Portmeirion Group brands. Royal Worcester Wrendale Designs continues to perform strongly following its launch in 2013.
A list of our current patterns can be found at www.portmeirion.co.uk, www.spode.co.uk, www.royalworcester.co.uk, www.wax-lyrical.com and www.pimpernelinternational.co.uk. Customers in the United States should go to www.portmeirion.com.
We continue to be well served by our strategy of diversifying products, customers, geographic markets and routes to market. This strategy enables us to exploit opportunities when they appear.
Ongoing strategy
The Group's long term strategy is focused around five key areas; profitable sales growth, introducing new products, investing in our brands, enhancing our operational capabilities and supporting this with complementary strategic acquisitions.
Profitable sales growth underpins all of the Group's objectives and will be achieved by targeted product development within our key markets. 2017 saw the Group achieve its ninth consecutive year of record sales and 10.6% revenue growth over the prior year, with an improvement in operating margin from 10.4% to 10.7%. Our focus will be on export market growth and continuing to build on the home fragrance acquisition within our key markets.
New product introduction includes both new ranges and extension of our biggest patterns to fit the needs of the modern consumer. During the year we launched successful additions to ranges such as Royal Worcester Wrendale Designs and Portmeirion Botanic Garden, our biggest selling pattern. New collections included working with talented artists such as Sara Miller London to allow us to reach new consumers, as well as developing over 200 new home fragrance products under the existing Portmeirion Group brands.
Supporting our brands means that we continue to invest to ensure we are maintaining our market position.
Our operational capabilities are constantly reviewed in order to position the Group to meet the requirements of our customers. We continue to drive operational effectiveness to ensure manufacturing and distribution competitiveness.
The Group remains committed to acquiring businesses where there is a strategic fit and the combination would be earnings enhancing. We have successfully integrated the Wax Lyrical business and will continue to drive our sales synergies.
Outlook
Trading in the first two months of the current year is nearly 20% ahead of the comparative period in 2017. However, given the Group's second half weighting, the sales in these first two months of the year are low in comparison to the balance of the year.
Our strategy and core values remain unchanged: we believe in profitable sales growth, introducing new products, investing in our brands, enhancing our operational capabilities and supporting this with complementary strategic acquisitions. We remain confident in our ability to create shareholder value in the short, medium and long term.
Dick Steele Lawrence Bryan Non-executive Chairman Chief Executive
Financial Review
Revenue
Revenue totalled GBP84.8 million for the year. This represented an increase of 10.6% over the previous year (2016: GBP76.7 million). If we exclude the full year impact of the acquisition of Wax Lyrical, then like-for-like growth was 5.6%.
Sales in our US market benefitted from a better exchange rate on consolidation in 2017. This accounted for a 1.7 % benefit to total Group sales.
Our revenue grew in both our core markets - the UK and US - as well as through strong demand in our export markets for key patterns such as historic Portmeirion Botanic Garden. New product launches, including those in our licensed ranges of Royal Worcester Wrendale Designs and Sara Miller London Portmeirion contributed to sales growth in our two largest markets in the UK and US.
Profit
Profit before taxation was GBP8.8 million, an increase of GBP1.0 million on 2016. Operating profit margins increased to 10.7% (2016: 10.4%) representing strong control over our operating costs together with improved customer mix and sales from new product launches.
Earnings per share increased from 59.60p to 65.07p per share.
Interest and financing costs
Finance costs increased by GBP0.1 million over the prior year representing a higher interest expense on the defined benefit pension scheme deficit, together with the full year impact of interest on the borrowing taken out in 2016 to finance the acquisition of the Wax Lyrical business. Both these costs are expected to reduce in the next 12 months.
Taxation
The charge for taxation was GBP1.9 million (2016: GBP1.6 million), an effective rate of taxation of 22.0% (2016: 20.3%). The increase in the effective tax rate relates to the one-time adjustment in deferred tax assets in our US business that is impacted by the recently announced reduction in US federal tax rates.
Dividends
The Board proposes a final dividend of 27.26p per share (2016: 25.25p) giving a total dividend for the year of 34.66p, an increase of 7.5% on 2016 (32.25p). This final dividend is expected to be paid on 30 May 2018 to shareholders on the register on 27 April 2018 with an ex-dividend date of 26 April 2018. Our dividend cover has been maintained at 1.85 times and the Board considers this to be a prudent level of cover.
The Group remains committed to a progressive dividend policy.
Cash generation and net debt
At 31 December 2017 net cash was GBP1.6 million, a GBP3.9 million improvement on December 2016 (net debt of GBP2.3 million).
This was after capital investment of GBP1.0 million, pension deficit contributions of GBP1.2 million together with dividend payments of GBP3.4 million and tax of GBP2.2 million. As previously reported, the company acquired the Wax Lyrical business in 2016 for a net cash outflow of GBP16.7 million. Following this acquisition we are pleased to have already returned to a position of net cash which is ahead of our forecasts.
We expect Portmeirion to remain a business that is cash generative.
Bank facilities
The Group has agreed debt facilities with Lloyds Bank, totalling GBP19 million at the balance sheet date. This consists of a GBP10 million revolving credit facility repayable in full in May 2019, a GBP2 million overdraft facility on an annual renewal cycle and a GBP10 million loan repayable equally over 5 years from May 2016, of which GBP7 million was outstanding at the year end.
Due to the seasonality of our sales, we experience a large working capital swing during the year. Our committed funding addresses this and we believe is conservative.
Assets and liabilities
Working capital remains an area of focus for us. Inventory increased in the year from GBP16.3 million to GBP18.1 million. This was driven by production of new home fragrance ranges for our Portmeirion Group brands and stock build for extensions to some of our licensed ranges. In both cases this stock is required to satisfy 2018 orders.
During the year we have paid GBP1.2 million into our defined benefit pension scheme, which was closed in 1999. Many companies carry defined benefit pension scheme deficits and our deficit is relatively modest. The accounting deficit reduced from GBP7.1 million at the end of 2016 to GBP1.7 million in 2017. The reduction represents the cash injection, asset performance over the period and changes to market forward assumptions. We continue to keep this under review.
Goodwill and intangibles are a major element of our balance sheet and represent the value of acquired brands such as Spode, Royal Worcester and Wax Lyrical. Net book value of intangibles has reduced in the year by GBP0.5 million being the amortisation charge. No new intangible assets have been added during 2017 other than small computer software expenditure.
Treasury and risk management
The impact of transactional currency flows on the Group's profit is limited due to natural matching across different regions. Where there is an anticipated material exposure to the Group, then our policy is to use appropriate hedging instruments to mitigate that risk.
Mike Raybould
Group Finance Director
CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2017
2017 2016
Notes GBP'000 GBP'000
Revenue 3 84,769 76,677
Operating costs (75,687) (68,713)
------------------------------------ ------ ---------- ----------
Operating profit 9,082 7,964
Interest income 17 31
Finance costs 5 (487) (387)
Share of profit of associated
undertakings 210 198
Profit before tax 8,822 7,806
Tax (1,944) (1,581)
------------------------------------ ------ ---------- ----------
Profit for the year attributable
to equity holders 6,878 6,225
------------------------------------ ------ ---------- ----------
Earnings per share 2 65.07p 59.60p
------------------------------------ ------ ---------- ----------
Diluted earnings per share 2 64.79p 59.10p
------------------------------------ ------ ---------- ----------
Dividends paid and proposed
per share 4 34.66p 32.25p
------------------------------------ ------ ---------- ----------
All the above figures relate to continuing operations.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2017
2017 2016
GBP'000 GBP'000
Profit for the year 6,878 6,225
----------------------------------------- --------- ---------
Items that will not be reclassified
subsequently to profit or loss:
Remeasurement of net defined
benefit pension scheme liability 4,428 (5,357)
Deferred tax relating to items
that will not be reclassified
subsequently to profit or loss (753) 815
Items that may be reclassified
subsequently to profit or loss:
Exchange differences on translation
of foreign operations (767) 1,293
Deferred tax relating to items
that may be reclassified subsequently
to profit or loss (57) 193
----------------------------------------- --------- ---------
Other comprehensive income for
the year 2,851 (3,056)
----------------------------------------- --------- ---------
Total comprehensive income for
the year attributable to equity
holders 9,729 3,169
----------------------------------------- --------- ---------
CONSOLIDATED BALANCE SHEET
31 December 2017
2017 2016
GBP'000 GBP'000
Non-current assets
Goodwill 7,229 7,229
Intangible assets 6,058 6,566
Property, plant and equipment 10,149 10,617
Interests in associates 2,525 2,313
Deferred tax asset 340 1,475
Total non-current assets 26,301 28,200
--------------------------------- ----------- -----------
Current assets
Inventories 18,074 16,267
Trade and other receivables 12,431 12,485
Cash and cash equivalents 8,487 6,540
Total current assets 38,992 35,292
--------------------------------- ----------- -----------
Total assets 65,293 63,492
--------------------------------- ----------- -----------
Current liabilities
Trade and other payables (10,556) (8,738)
Current income tax liabilities (475) (1,005)
Borrowings (1,981) (1,961)
Total current liabilities (13,012) (11,704)
--------------------------------- ----------- -----------
Non-current liabilities
Pension scheme deficit (1,672) (7,130)
Deferred tax liability (882) (961)
Borrowings (4,955) (6,909)
Total non-current liabilities (7,509) (15,000)
--------------------------------- ----------- -----------
Total liabilities (20,521) (26,704)
--------------------------------- ----------- -----------
Net assets 44,772 36,788
--------------------------------- ----------- -----------
Equity
Called up share capital 554 550
Share premium account 7,193 6,624
Investment in own shares (1,876) (2,936)
Share-based payment reserve 550 496
Translation reserve 2,076 2,900
Retained earnings 36,275 29,154
--------------------------------- ----------- -----------
Total equity 44,772 36,788
--------------------------------- ----------- -----------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2017
Share-based
Share Investment payment
Share premium in own reserve Translation Retained
capital account shares GBP'000 reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January
2016 550 6,612 (3,137) 370 1,414 30,713 36,522
--------------------- ---------- ---------- ------------- ------------ -------------- ----------- ----------
Profit for
the year - - - - - 6,225 6,225
Other comprehensive
income for
the year - - - - 1,486 (4,542) (3,056)
--------------------- ---------- ---------- ------------- ------------ -------------- ----------- ----------
Total comprehensive
income for
the year - - - - 1,486 1,683 3,169
Dividends
paid - - - - - (3,217) (3,217)
Increase in
share-based
payment reserve - - - 144 - - 144
Transfer on
exercise or
lapse of options - - - (18) - 18 -
Shares issued
under employee
share schemes - 12 201 - - (6) 207
Deferred tax
on share-based
payment - - - - - (37) (37)
--------------------- ---------- ---------- ------------- ------------ -------------- ----------- ----------
At 1 January
2017 550 6,624 (2,936) 496 2,900 29,154 36,788
--------------------- ---------- ---------- ------------- ------------ -------------- ----------- ----------
Profit for
the year - - - - - 6,878 6,878
Other comprehensive
income for
the year - - - - (824) 3,675 2,851
--------------------- ---------- ---------- ------------- ------------ -------------- ----------- ----------
Total comprehensive income for the year - - - - (824) 10,553 9,729 Dividends paid - - - - - (3,433) (3,433) Increase in share-based payment reserve - - - 66 - - 66 Transfer on exercise or lapse of options - - - (12) - 12 - Shares issued under employee share schemes 4 569 1,094 - - (7) 1,660 Purchase of own shares - - (34) - - - (34) Deferred tax on share- based payment - - - - - (4) (4) --------------------- ---------- ---------- ------------- ------------ -------------- ----------- ---------- At 31 December 2017 554 7,193 (1,876) 550 2,076 36,275 44,772 --------------------- ---------- ---------- ------------- ------------ -------------- ----------- ----------
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2017
2017 2016
GBP'000 GBP'000
Operating profit 9,082 7,964
Adjustments for:
Depreciation of property, plant
and equipment 1,329 1,328
Amortisation of intangible assets 588 454
Charge for share-based payments 66 144
Exchange (loss)/gain (168) 205
Profit on sale of tangible fixed
assets (17) (2)
Operating cash flows before movements
in working capital 10,880 10,093
Increase in inventories (2,243) (342)
Increase in receivables (193) (709)
Increase in payables 1,992 1,096
Cash generated from operations 10,436 10,138
Contributions to defined benefit
pension scheme (1,200) (1,400)
Interest paid (247) (233)
Income taxes paid (2,246) (1,620)
------------------------------------------ --------- ---------
Net cash from operating activities 6,743 6,885
------------------------------------------ --------- ---------
Investing activities
Interest received 17 31
Proceeds on disposal of property,
plant and equipment 47 34
Purchase of property, plant and
equipment (938) (744)
Purchase of intangible assets (80) (20)
Acquisition of subsidiary - (16,669)
Net cash outflow from investing
activities (954) (17,368)
------------------------------------------ --------- ---------
Financing activities
Equity dividends paid (3,433) (3,217)
Shares issued under employee share
schemes 1,660 207
Purchase of own shares (34) -
New bank loans raised 3,000 16,844
Repayments of borrowings (5,000) (8,000)
Net cash (outflow)/inflow from financing
activities (3,807) 5,834
------------------------------------------ --------- ---------
Net increase/(decrease) in cash
and cash equivalents 1,982 (4,649)
Cash and cash equivalents at beginning
of year 6,540 11,130
Effect of foreign exchange rate
changes (35) 59
------------------------------------------ --------- ---------
Cash and cash equivalents at end
of year 8,487 6,540
------------------------------------------ --------- ---------
NOTES TO THE PRELIMINARY RESULTS
1. This announcement was approved by the Board of Directors on 14 March 2018.
1.1 The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 December 2017 or 2016, but is derived from those accounts. Statutory accounts for 2016 have been delivered to the Registrar of Companies and those for 2017 will be delivered following the Company's Annual General Meeting. The auditors have reported on those accounts: their reports were unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under Sections 498(2) or (3) of the Companies Act 2006.
1.2 For the year ended 31 December 2017 the Group has prepared its annual report and accounts in accordance with accounting standards adopted for use in the European Union (International Financial Reporting Standards).
This financial information has been prepared in accordance with the accounting policies stated in the Group's financial statements for the year ended 31 December 2017.
The financial statements have been prepared on the historical cost basis, with the exception of derivative financial instruments which are stated at their fair value.
1.3 At 31 December 2017 the Group had a net cash balance of GBP1.6 million and had a bank facility of GBP19 million. It manufactures approximately 49% of its products and sources the remainder from third party suppliers. The Group sells into a number of different markets worldwide and has a spread of customers within its major UK and US markets.
After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
NOTES TO THE PRELIMINARY RESULTS
Continued
2. Earnings per share
The calculation of basic and diluted earnings per share is based on the following data:
2017
Weighted 2016 Earnings
average Earnings Weighted per
Earnings number of per share Earnings average number of share
GBP'000 shares (pence) GBP'000 shares (pence)
Basic earnings
per share 6,878 10,570,942 65.07 6,225 10,445,140 59.60
Effect
of dilutive
securities:
employee
share options - 45,459 - - 87,517 -
---------------- --------- ----------- ----------- --------- ------------------- ---------
Diluted
earnings
per share 6,878 10,616,401 64.79 6,225 10,532,657 59.10
---------------- --------- ----------- ----------- --------- ------------------- ---------
3. Geographical analysis
The following table provides an analysis of the Group's revenue by geographical market, irrespective of the origin of the products:
2017 2016
GBP'000 GBP'000
United Kingdom 28,836 27,084
United States 25,156 24,216
South Korea 6,604 9,724
Rest of the World 24,173 15,653
------------------- --------- ---------
84,769 76,677
------------------- --------- ---------
4. Dividends
The Directors recommend that a final dividend for 2017 of 27.26p (2016: 25.25p) per ordinary share be paid, subject to shareholders' approval, on 30 May 2018 to shareholders on the register on 27 April 2018. The total dividend paid and proposed for the year is 34.66p (2016: 32.25p) per share.
NOTES TO THE PRELIMINARY RESULTS
Continued
5. Finance costs
2017 2016
GBP'000 GBP'000
Interest paid 313 281
Realised losses on financial
derivatives 4 8
Unrealised losses on financial
derivatives - 10
Net interest expense on pension
scheme deficit 170 88
487 387
--------------------------------- --------- ---------
6. Reconciliation of earnings before interest, tax, depreciation and amortisation (EBITDA)
2017 2016
GBP'000 GBP'000
Operating profit 9,082 7,964
Add back:
Depreciation 1,329 1,328
Amortisation 588 454
Earnings before interest, tax,
depreciation and amortisation 10,999 9,746
-------------------------------- --------- ---------
The accounts for the year ended 31 December 2017 will be posted to shareholders on or before 13 April 2018 and laid before the Company at the Annual General Meeting on 17 May 2018. Copies will be available from the Company Secretary at Portmeirion Group PLC, London Road, Stoke-on-Trent, Staffs., ST4 7QQ, or from the website www.portmeiriongroup.com.
The company news service from the London Stock Exchange
END
FR JIMPTMBBBBMP
(END) Dow Jones Newswires
March 15, 2018 03:00 ET (07:00 GMT)
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