Global homeware brands group Portmeirion is planning to up the proportion of branded products made in Stoke-on-Trent as an immediate priority to support a recovery of long-term profitable growth.
The firm, which is based in the city, has drawn up a list of business priorities for 2025-2026 after describing preliminary results for the year ending 31 December 2024 as ‘disappointing’.
During the period, revenue fell 11 per cent to £91.2 million (from £102.7 million) and headline profit before tax was down 63 per cent to £1.1 million (from £3 million).
Both of these drops have mainly been put down to downturn in the company’s South Korean market which experienced an unprecedented 45 per cent fall in sales due to a significant stock overhang at key customers, and its consequential impact on factory utilisation.
Presenting his first report as Non-Executive Chairman after being appointed in February this year, Peter Tracey said that the company sees a ‘substantial opportunity’ to grow Spode sales in established and new markets over the next five years.
Portmeirion intends to invest in its premium brands in order to accelerate growth, and this includes plans to completely overhaul and re-energise its retail store portfolio in the UK and global eCommerce over the next 12 months to improve customers’ brand experience.
Increasing the proportion of branded product ‘Made in Stoke-on-Trent’ is seen as ‘an important commitment’ to its customers and brands.
The statement adds: “Approximately 26 per cent of our branded tableware products are made in our Stoke-on-Trent factory and we intend to increase this over the next 24 months.
“This may have an initial impact on our gross margins due to the cost of manufacturing in the United Kingdom, but it is a necessary margin investment in our brands. I am confident that we will recover the margin investment and reap substantial benefits over the medium term.”
The preliminary results, published yesterday, show Portmeirion enjoyed a 18 per cent increase in net profitability in the US, reaching £4.2 million, despite ongoing supply chain delays limiting Q4 sales.
UK sales were up five per cent to £32.4 million (from £30.8 million).
Spode sales have continued to rise for the last four years and are now up 45 per cent on pre-Covid levels.
Commenting on the Group’s performance Portmeirion Chief Executive Mike Raybould said: “2024 was a disappointing year and our financial performance overshadowed good growth in our Spode brand and improved profitability in the US, our largest sales market.
“Our customers reported strong sell through of our collections during the key Christmas period and Wax Lyrical, our home fragrance business, also saw strong top and bottom line growth.
“Action is being taken across our operations to position the business for sustainable future growth and we are moving forward with clear priorities to return our established markets to growth, strengthen our balance sheet, invest in our premium brands and develop new international markets.
“Trading in 2025 has started positively and we are cautiously optimistic at this early point in the year, mindful of the headwinds many businesses are facing in this uncertain economic climate.”
