The wildly popular cookery show Great British Bake Off returned to UK television screens this week to great fanfare.
Despite some concern over the move away from the BBC this season, the charm of the iconic big white tent (where the baking contest takes place) appears to remain unscathed.
But the positive influence of quintessentially British shows like Downton Abbey and Bake Off could be about more than just food for the soul. They may have also contributed to a sharp acceleration in the UKs food and drink exports to China in the past two years.
There has been a particularly steep climb in goods relating to afternoon tea.
In 2016, tea exports from the UK to China rose by 63%, and milk powder exports increased by 134%. Cake exports climbed 26% and spring water leapt by 139%, according to the Food and Drink Federation.
Games - let's hope they all buy the plates and cups in the box with the tea and cakes and ship them en masse.
"""""Our net debt position at 30 June 2017 was £1.7 million, which compares with net debt of £9.7 million at 30 June 2016 and net debt of £2.3 million at 31 December 2016. We are pleased with the £8.0 million reduction in net debt and this is ahead of our expectations. This was driven by a number of factors including improved working capital with both lower inventory and trade receivables. Our committed bank facilities total £20.0 million.""""
Now given that they paid net £16.7M for Wax Lyrical and it only generated a few million of profit, how the sam heck have they reduced the debt from £9.7M to £1.7M
OK they give an explanation but it looks like a lot of accounting trickery.
Also there was a massive drop in the US business and South Korea fell again.
I'm up 20% on this, but feel like the business has only shown a growth dues to the immediate acquisition and the numbers are very heavily back end loaded -- smacks of lots hope here.
"Richard, I need to talk to you about Portmeirion.You were dancing around Portmeirion towards the end of last year. What stopped you swooping in with a clinch?I might well have done, but I was distracted by other companies, then Christmas got in ..."
This seems to be the most disconcerting aspect of the business :-
""""Having fallen from more than £15 million to £12.3 million in 2015, sales into South Korea fell below £10 million in 2016
""""" sales into India fell from £5.8 million in 2015 to £1.1 million in 2016.
""""""The company notes it is working closely with our exclusive distributor in South Korea to rebuild sales and that we have changed our distribution arrangements in India, but also notes South Korean economic problems particularly in demand for luxury products and that returning sales to prior high levels in India will take time.
The fall in sales in both countries is quite dramatic -- is there any indication that the stuff is being copied?
They have changed the distributor in India -- I bet they have, the sales fell off a cliff £5.8M to £1.1M seems to indicate that the distributor gave up or there were large non repeated orders in 2015.
Your message has reminded me that I did not reach my own conclusion on the recent results.
I can understand why some might advise avoid because I don't see any easy gains here.
If you are looking for obvious growth shares which have not (yet) disappointed like Boohoo et al then Portmeirion doesn't really fit the bill.
The company disappointed last year with profits down due to problems in territories considered key future prospects. The acquisition of Wax Lyrical papered over the cracks. Lucky or good strategic move?
Trading on 14 times current year forecasts it doesn't seem expensive. But they do have to fix the problems to deliver the expected results and its not unusual for companies with problems to suffer more problems. Why invest in something that might be going backwards if there are quicker gains to be made elsewhere?
But thats overlooking the track record of this company and its management team. The devaluation of Sterling should help them to export more UK produced product (which they need to raise efficiency of their plant) and at the same time raise the profits coming in from their foreign made products. The company should benefit further from any more devaluations of Sterling and Europe is not really an issue? The company is still a cash generating machine and this should improve as exports increase but it will be slow and steady rather than a quick profit?
So there are good points for both Bull and Bear on this share. At the moment I am backing the track record and rate the purchase of Wax Lyrical as astute rather than lucky.
I will add to my holding on any serious weakness - provided that further problems don't appear,
Read Panmure Gordon & Co's note on PORTMEIRION GROUP PLC (PMP), out this morning, by visitinghttps://www.research-tree.com/company/GB0006957293
"Portmeirion has announced the acquisition of Lighthouse Holdings Ltd for a total consideration of £17.5m plus surplus cash. We think that Lighthouses wholly owned subsidiary, Wax Lyrical, is a great addition to the groups portfolio of brands and represents a strong strategic fit; substantial revenue synergies are expected from this acquisition going forward as Portmeirion grows the brand through existing customers, websites, outlets and distribution channels. We therefore..."
Read Stockdale Securities's note on PORTMEIRION GROUP, out this morning, by visiting https://www.research-tree.com/company/GB0006957293
"In March, the group reported the seventh consecutive year of record sales in 2015 with both revenues and earnings reaching record levels. This outcome, as well as the groups confidence for the future, has enabled it to increase its dividend for the seventh consecutive year. A final dividend of 23.9p was proposed, making a total of 30.0p for FY2015, an increase of 13.2% over the total amount paid in 2014. Dividend cover is 2.2x, which the Board considers a level that is both appropriate and sustainable level for the business. Over the last seven years, the group has increased its dividend by an average of 10.7% per annum compound and the total dividend is now more than double the amount in 2008...."
"LSE:PMP:Portmeirion, the Stoke-on-Trent ceramics giant, says it made "slightly" more money than expected in 2015 after achieving a seventh consecutive year of record sales. Bosses remain "committed" to a progressive dividend policy, which is ..."
Since 1988 this company has had two major crashes, down to 110p area each time, so with a jittery market this would be one to jettison if a serious economic slump took hold. In the meantime, it cranks out another set of quietly satisfactory results and the share price and dividend ease upwards again.
Under the radar and so still on reasonable PE despite now 7.5 times rise since 2009. Handy dividend and a long term favourite of Stockopedia small cap columnist.
"Potter Portmeirion has defied the trends that sank rivals last decade to emerge as an unlikely growth story this decade.Signs of strengthShare Sleuth portfolio candidate LSE:PMP:Portmeirion published its results for the full-year to 31 December ..."
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