Revenue at Portmeirion Group dropped during the first half of this year but current trading is in line with market expectations, according to latest results.
Interim results released for the six months to 30 June 2024 show revenue dropped to £36.6 million from £44.1 million in the previous year.
The 17 per cent decrease is a result of a 61 per cent drop in sales in South Korea.
However, sales were up five per cent outside of South Korea and sales growth has been reported in the core UK and US markets, up 11 per cent and five per cent respectively.
A strong first half performance by the Spode brand has helped and second half sales are expected to increase due to further international growth in the Spode Christmas Tree range.
Headline loss before tax of £2 million is in line with the board’s expectations.
Last month, the Stoke-on-Trent-based company, which manufactures, designs and distributes homewares, secured a new £30 million revolving credit facility with Barclays.
The four-year plus one term is expected to consolidate and simplify the firm’s borrowing structure and provide more working capital headroom for the future. It’s replacing Portmeirion’s previous facilities totalling £24.5 million.
Chief Executive Mike Raybould said: “We are pleased with the sales and gross margin growth in the US, our largest sales market. We have added new distribution in the US in the last six months and are confident that as the macroeconomics improve that we will see the benefit in our top line sales.
“Similarly, we continue to take market share in the UK Grocery channel with our new Wax Lyrical home fragrance ranges and with further new major listings since the half year, our factory in Cumbria continues to successfully ramp up production levels and efficiency.
“As previously indicated, the Group has seen reduced order flow in H1 2024 from our South Korean market as high levels of stock take time to sell through.
“However, we are encouraged that our brands continue to be in high demand in this market as evidenced by growing online sales and that our Botanic Garden tableware range remains in the top two for all online brand searches. Furthermore, we are accelerating new product launches to help support this market in the short term.
“Our brands continue to resonate globally and with a healthy Christmas order book, we are currently trading in line with board expectations and are on track to meet Full Year market expectations.”
