7th Jul 2016 08:18
LONDON (Alliance News) - Homewares maker Portmeirion Group PLC on Thursday said profit in 2016 is set to be materially lower due to continued difficult trading conditions in Asia and a slowdown driven by the Brexit decision in the UK.
Portmeirion said total revenue for 2016 will be higher year-on-year, driven by the acquisition of home fragrance maker Wax Lyrical.
But pretax profit for 2016 is set to be materially lower than the GBP8.6 million reported in 2015, due to a continued slowdown in sales for the company in Asia. In particular, Portmeirion said sales in South Korea have shown no signs of recovery and the performance of its distributor in India has been "extremely disappointing".
In addition, Portmeirion said it has seen negative effects on demand both in the lead up to and in the aftermath of the UK's vote to leave the European Union. The fall in sterling which accompanied the vote to leave has yet to translate into firm overseas orders, it added.
Portmeirion, however, said it believes this to be a "short-term setback" and continues to plan to increase its interim dividend for 2016 by 14% year-on-year.
Shares in the company were down 20% to 878.75 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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