Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. Portmeirion Group PLC
  6. News
  7. Summary
    PMP   GB0006957293

PORTMEIRION GROUP PLC

(PMP)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

Portmeirion : 2020 Interim Results - Presentation

10/05/2020 | 09:50am EDT

2020 Interim

Results

Global Brands

Timeless

Design

Agenda

  1. H1 Overview
  2. Strategy Recap
  3. Update on Strategy & Equity Raise initiatives

4.

Outlook & Dividend

Mike Raybould

David Sproston

5.

Summary

Chief Executive Officer

Group Finance Director

INVESTOR PRESENTATION 2

Resilient performance H1 2020 shows brand strength

Overview

  • Sales -8%, like for like (excl Nambe) -20% led to £2.7m loss before tax, (2019 £0.5m profit)
  • Major Covid disruption due to global retail shutdown negated by
    • Substantial Online growth : Own website sales + 90% YOY
    • Re-purposingof UK Wax Lyrical factory to make 1m bottles hand sanitiser Q2 demonstrates agility
  • Successful £11m Equity raise June 20: To invest & accelerate our growth strategy
  • Strong Balance sheet maintained with net cash balance and significant facility headroom
  • Improving sales trend seen June, pleasingly continued through Q3.
  • Continued to invest throughout 2020 & good strategic progress on initiatives since fundraise
  • Two UK factories now at, or very close, to pre-Covid output levels
  • Expect to return to profitability H2 and return to sustainable dividend payments in 2021

Strong brands, diversified across 72 markets with over seven hundred years of history

INVESTOR PRESENTATION 3

Resilient H1 2020 Performance

H1 2020

H1 2019

Change

FY 2019

£m

£m

£m

Revenue

32.0

34.9

-8.3%

92.8

Headline* (loss)/profit before tax

-2.7

0.5

-3.2

7.4

Headline* (loss)/profit before tax margin

-8.3%

1.5%

-9.8%

8.4%

Headline* EPS

-20.71p

3.96p

-24.67p

56.32p

Dividends

0.00p

8.00p

-8.0p

8.00p

Net cash/(debt)

1.1

(5.8)

-

(12.3)

*Headline profit and EPS excludes exceptional items, being acquisition costs.

  • Revenue down 8.3% YOY but -20% like for like
  • Nambe first half adds to revenue but loss making H1 due to Covid own retail store closures Q2.
  • PBT loss £2.7m vs £0.5m profit 2019 - in line with internal expectations June 20
  • Anticipate resuming dividend payments in 2021
  • Net debt reduced in H1 before equity raise proceeds of £11m

INVESTOR PRESENTATION 4

Strong Balance Sheet Maintained

Jun-20

Jun-19

Change

£m

£m

Total non-current assets

28.9

25.5

13.3%

Lease assets

5.6

4.8

16.7%

Inventory

30.6

24.2

26.4%

Trade & other receivables

12

12.9

-7.0%

Cash

13

2.2

490.9%

Total current assets

55.6

39.3

41.5%

Trade & other payables

-13.8

-11.9

16.0%

Borrowings

-11.9

-8

48.8%

Pension scheme deficit

-2

0.6

-433.3%

Net assets

56.5

45.5

24.2%

Share capital

0.7

0.6

16.7%

Share premium

18.3

7.3

150.7%

Other

-0.1

-0.4

-75.0%

Retained earnings

37.6

38.0

-1.1%

Total equity

56.5

45.5

24.2%

  • Strong Balance sheet, significant facility headroom with funds to invest behind growth strategy
  • Cash inflow H1 £2.2m before equity raise due to swift Covid response & action

INVESTOR PRESENTATION 5

Sales analysis by market

H1

H1

Change

2020

2019

Sales by Country

£m

£m

UK

12.7

13.5

-5.9%

US ( incl Nambe)

10.5

8.5

23.5%

South Korea

2.1

3.9

-46.2%

Europe

1.0

1.8

-43%

Rest of World

5.7

7.2

-21.3%

TOTAL

32.0

34.9

-8.3%

  • Covid 3 month retail shutdowns impact all markets
  • US excl Nambe first half -26%
  • Korea - market impacted earliest (Jan 20) by Covid
    • Distributor sales out improving through period as retail gradually reopened. YOY Sales out data last 3 months is up on prior year
    • New product lines made H2, 2019, selling through in market
    • 2019 issue of Botanic Garden overstocks in mid market now subsided through much improved discipline on grey ship market

INVESTOR PRESENTATION 6

Strategy Update

INVESTOR PRESENTATION 7

Strategy : 6 key areas of focus

Sales Growth

Operating Margin

Focused Brand & Product

Digital & Online Transformation

Continued focus on South

development

Korean market

Fully leverage our strong brands

Accelerate our online transformation

Ongoing discipline and diversification to

and product development engine to

and the growth opportunities therein

protect our brands there long term

drive sales growth

Leverage Wax Lyrical and

Targeted ROW Export growth

Operating & Procurement

Nambe opportunities

Efficiency and Capabilities

Leverage our Wax Lyrical and Nambé

More targeted focus on key ROW

Become more efficient and agile: in

acquisitions - new product categories

growth opportunities

our factories, our processes and how

and ROW market expansion

we work across our global teams

Deliver consistent & accelerated sales growth

Deliver consistent operating margin growth

INVESTOR PRESENTATION 8

Strategy: Timeline & Progress

Q4 19

New Mg't

& Strategy

H1 2020

June 20

Q3 2020

Rapid

Progress

Equity

Covid

since equity

raise

response

raise

  • Strong Cash management
  • Repurpose Wax Lyrical factory
  • Reopened ceramic factory May
  • Online +90% H1
  • Online increased investment

-> Accelerate strategy

• Online - further investment

-> Post Covid

systems / people / fulfilment

opportunities

capability H2

Online growth

• Canada JV purchased in Aug

• Custom build started for first

Manufacturing

factory automation project.

efficiency

Other smaller projects

Factory extension

already completed.

'Hand & Body' care

• Build started for 'Hand &

range

Body' range factory extension

Purchase Canadian JV

• Board changes and UK

structure simplified Aug 20

for sales & cost synergies

Strategy Update : Accelerate Online Penetration

2019

  • UK/US markets total online sales now c.30%
  • Own ecommerce 6% (+16% YOY)
  • Customer list grew c.100%

2020 H1

  • Own ecommerce +90% (now 15% of sales) boosted by Covid
  • Strong growth in most retailer.coms
  • Customer database +31% vs Dec19. Now 225,000 vs 50,000 Dec18
  • Increasing investment & resource

Objective 2020-22: Significant Online channel sales growth

(Own online sales 15%+ (vs 6% 2019) & all channel online sales >50% total sales) Strategic Action & Progress

Boost Customer Acquisition

  • Email customer list is key source of repeat revenue : grown 31% since Dec19.
  • Increased investment / resource behind paid search/social
  • Filmed D2C advert for US market Q4 2020 trial

Customer Conversion & Brand Presence all online

  • Four new website platforms launched Mar-Sept 20
  • Doubled photography resource: all key ranges being reshot
  • New global DAMS system in build; live Jan 1 2021; all brands
    Building People Capabilities
  • Added hires YTD;
  • 4 further hires join Oct 20

Objective 2020-22: Future proof warehouse online fulfilment & service levels

Strategic Action & Progress

  • Built 100% YOY UK online drop ship capacity increase for Q4 2020
  • Built JLP drop ship order integration - goes live Oct 20
  • Initiatives underway for further capacity 2021/22

INVESTOR PRESENTATION 10

Strategy Update : Double size of Wax Lyrical business

H1 2020

  • Sales + 2% despite Covid retailer shutdown
  • 1m bottles hand sanitiser Q2
  • New International customers

Objective 2020-22: Double sales with strong profit drop through

Strategic Action & Progress

Increase core market sales

  • Wrendale range launched - strong initial order flow
  • Core market sales started to return in Q3
  • New Sophie Conran range ready for 2021 launch

International expansion

  • Disrupted during retail shutdowns but still opened new markets in China, Taiwan with good initial order flow and sell through
  • Agents appointed for US.

New investment in permanent Hand & Body Lines

  • Build on learning from pivot to Hand sanitiser production
  • Project and build on track for Spring 21 launch
  • Target: Baseline of continuing hand sanitiser sales + new hand & body soap/lotions ranges

INVESTOR PRESENTATION 11

Acquisition : Canadian Joint Venture

Objective 2020-22: Build more significant presence in Canada

Opportunity to grow Canada market and revitalise

Strategic Action & Progress

• Acquired Canadian JV August 20 for CAD $1m ( £0.6m)

• Lower price than expected at Equity raise June 20

Targeted manufacturing investments

• Opportunity to revitalise and grow sales in long standing market

• Started closer integration of Toronto team and warehouse into existing New Jersey office

• Already working on quick wins behind strong online sales channel opportunity

• Purchase came with ongoing exclusive premium glass licenses for Canada

INVESTOR PRESENTATION 12

Strategy Update : Manufacturing Efficiency

Objective 2020-22

• Reduce manufacturing cost / unit by 10% by year 3

Strategic Action & Progress

  • Working with 3P automation manufacturers on automation roadmap for both UK factories
  • Heat release machine £0.7m ordered and in build. Ready Spring 2021
  • Litho cutter installed Aug 2020
  • Decal automated mug machine live Aug 20
  • Further projects to follow in next 12-18 months
  • Ongoing projects to reduce energy usage

Targeted manufacturing investments

  • Improved throughput UK factory and lower cost/unit
  • Heat release machines, digital printing
  • Improved energy efficiency

INVESTOR PRESENTATION 13

Manufacturing Efficiency: Examples of progress last 3 months

Fully automated

• 20 yr old Decal

custom design

• In build now for Apr 21

application

technology

2x output for 1/3rd the

labour

Less energy

Hand applied

• Automated mug

decal onto Mug

machine went ive

Opportunity to grow Canada market and

Targeted

investments

Aug 20

revitalise

Labour intensive

• 4x output in same 8 hr shift

Hand litho

Automated litho

cutting

cutting machine

Slow and

Implemented Aug 20

labour

• 5x output in same 8

intensive

hr shift and 1/3rd

labour

Forward Outlook / Dividend

Forward Outlook

  • Improving sales trend seen in June has pleasingly continued throughout Q3.
  • Our two UK factories now at, or very close, to pre Covid output levels
  • Online sales channels growth continuing in Q3
  • Cognisant that our key trading period is still ahead of us and Covid macro uncertainties still persist around the world
  • Expect to return to profitability H2
  • Expect to broadly return to 2019 trading levels in 2021 (ie Covid overhang persists offset by sales growth from new strategy)
  • Investment now will drive sustained annual double digit sales growth thereafter and enhanced operating margin %

Dividends

  • Understand dividend payments important to our shareholders / committed to recommencing
  • Prudent to see out key seasonal Christmas period and expect to resume payments for FY21
  • Will balance dividend payout levels with need to invest behind growth strategy and sustainable levels as measured by dividend cover

INVESTOR PRESENTATION 15

Summary

Strong brands enabled resilient H1 performance against backdrop of retail shutdowns

90% Online H1 sales growth shows what is possible: Key part of strategy

Robust balance sheet plus fundraise proceeds provides platform to invest

Improving sales trend continuing through Q3 pleasing but Covid still provides uncertainty ahead of key seasonal trading period

Continued investment through 2020 will drive strong top and bottom line growth

INVESTOR PRESENTATION 16

Appendix

INVESTOR PRESENTATION 17

Board and Management Team

Mike Raybould

Chief

Executive

Officer

Jacqui Gale

Chief

Commercial

Officer

Mick Knapper

Operations

Director

David Sproston

Group

Finance

Director

Bill Robedee

President of

North America

Dick Steele

Non-executive

Chairman

Andrew Andrea

Non-executive Director

Angela Luger

Non-executive Director

Claire Askem Non -executiveDirector

18

Contact

Mike Raybould

Chief Executive Officer

Email: mraybould@portmeiriongroup.com

Direct Tel: 01782 744721

Mobile Tel: 07808 730288

David Sproston

Group Finance Director

Email: dsproston@portmeiriongroup.com

Direct Tel: 01782 744721

Mobile Tel: 07719 545507

Hudson Sandler: Dan de Belder

Email: ddebelder@hudsonsandler.com

Direct Tel: 0207 796 4133

www.portmeiriongroup.com

Portmeirion, Spode, Royal Worcester, Pimpernel, Nambé and Wax Lyrical are registered trade marks of Portmeirion Group

19

Disclaimer

Portmeirion Group plc published this content on 05 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 October 2020 13:49:05 UTC


ę Publicnow 2020
All news about PORTMEIRION GROUP PLC
03/18PORTMEIRIONá : Earnings Flash (PMP.L) PORTMEIRION GROUP Posts FY20 EPS GBX4.95
MT
03/18PORTMEIRIONá : Earnings Flash (PMP.L) PORTMEIRION GROUP Posts FY20 Revenue GBP87..
MT
2020CHELVERTON UK DIVIDEND TRUST PLC : Half-Yearly -4-
DJ
2020PORTMEIRIONá : Interim Statement 2020
PU
2020PORTMEIRIONá : 2020 Interim Results - Presentation
PU
2020PORTMEIRION GROUP PLC : RIGHTS ISSUE: 2 new shares @ 3.8 GBP for 41 existing sha..
FA
2019PORTMEIRIONá : Ferrari takes no prisoners
AQ
2019PORTMEIRION GROUP PLC : Ex-dividend day for interim dividend
FA
2019PORTMEIRION GROUP PLC : Ex-dividend day for final dividend
FA
2019PORTMEIRIONá : Notification of Major Interest in Shares
PU
More news
Financials
Sales 2021 90,0 M 127 M 127 M
Net income 2021 5,10 M 7,20 M 7,20 M
Net cash 2021 2,58 M 3,64 M 3,64 M
P/E ratio 2021 18,7x
Yield 2021 1,76%
Capitalization 96,3 M 136 M 136 M
EV / Sales 2021 1,04x
EV / Sales 2022 0,91x
Nbr of Employees 850
Free-Float 60,2%
Chart PORTMEIRION GROUP PLC
Duration : Period :
Portmeirion Group PLC Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends PORTMEIRION GROUP PLC
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 2
Average target price 920,00 GBX
Last Close Price 700,00 GBX
Spread / Highest target 31,4%
Spread / Average Target 31,4%
Spread / Lowest Target 31,4%
EPS Revisions
Managers and Directors
NameTitle
Michael Trevor Raybould Chief Executive Officer
David Sproston Group Finance Director
Richard John Steele Non-Executive Chairman
Michael John Knapper Operations Director & Director
Janis Carol Kong Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
PORTMEIRION GROUP PLC40.00%136
MIDEA GROUP CO., LTD.-24.83%79 960
NEWELL BRANDS INC.32.08%11 925
SEB S.A.13.62%10 242
THE MIDDLEBY CORPORATION31.41%9 425
ZHEJIANG SUPOR CO., LTD.-13.00%8 624