World news – Portmeirion sales and profits down after a challenging year

CEO Mike Raybould is « encouraged » by the company’s improved sales performance in the second half of 2020

In the twelve months ended December 31, 2020, the Stoke-based company had sales of $ 87.9 million. GBP £ 6 million – down from £ 92.8m in 2019 – while profit before tax fell £ 6m from £ 7.4m to £ 1.4m.

However, Portmeirion CEO Mike Raybould says he is « encouraged » after seeing the company’s strong performance continue into the second half of last year through 2021.

He is pleased that online sales increased significantly by 69 percent in 2020 as Covid-19 forced the closure of retail and hospitality businesses across the UK and beyond.

Mr. Raybould said: « We continue to monitor the impact of the Covid-19 pandemic on all parts of our business. Like many others, Covid-19 has severely disrupted our business and there are still disruptions in key markets and international delivery channels Q1 2021 due to national and local lockdowns.

« However, the strong growth in online sales channels has significantly mitigated the impact of retailer closures and we are excited about the improving trend in sales performance in the second half of 2020 .

« Fortunately, we continued to observe this improving trend in the first quarter of 2021 and are therefore still confident of returning to sales growth in 2021. »

In June, Portmeirion, which owns the Spode, Wax Lyrical, Nambe brands, closed down , Royal Worcester and Pimpernel, own a capital increase of £ 11.2 million.

The money helped the company grow its online sales and invest in manufacturing facilities in its London Road factory.

The company also expanded some of its Wax Lyrical product lines and acquired the remaining 50 percent stake in Portmeirion Canada.

Also last year, the company undertook a major reorganization of its board of directors following the resignation of former CEO Lawrence Bryan and former group sales and marketing director Phil Atherton.

Jacqui Gale and Bill Robedee subsequently joined the board, and Clare Askem was named non-executive director.

Now Portmeirion has unveiled a three-year roadmap that includes a major investment in the Stoke-on-Trent facility to increase capacity, make it more cost-effective and ensure that it is « green ».

In addition, the company would like to continue investing in its online sales channels and developing new products – especially under the Spode brand, which celebrated its 250th birthday in 2020.

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Mr. Raybould said: « After the successful capital increase in June 2020 and despite the disruption caused by Covid-19, we have our investments into the business and made a number of strategic hires, in particular expanding our online and digital marketing teams and making our operations more efficient.

« We have continued our transformation into a more online and digital-based business and will continue to invest in this area and our capabilities and expect further growth in the years to come.

« We believe this investment will put our business and brands in the best possible position to grow strong and profitable for years to come.

 » We have a strong balance sheet, a well-invested business and a clear strategy that we believe will be successful in the medium to long term.

« We remain vigilant of any further possible disruptions in our key markets, but we are confident that we will return to growth in 2021. »