Portmeirion's profits dive by 76%

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Shares in Portmeirion Group, the ceramics specialist, dived 16 per cent after it reported that interim profits had collapsed and its chief executive had quit.

Portmeirion, which issued a profits warning last month, blamed the 76 per cent slide in pre-tax profit on lack of US demand, significant destocking and foot-and-mouth, which kept overseas visitors away in the first quarter. Profits for the six months to 30 June were £262,000, compared with £1.1m a year earlier, on sales down 9 per cent at £13.5m.

Lawrence Bryan, formerly president of Portmeirion USA, was appointed chief executive to replace Kami Farhadi who resigned on Wednesday. Portmeirion's shares closed down 27.5p at 145p, valuing the company at £15m.

The group, which is named after Portmeirion village in north Wales where its first gift shop was opened, warned that full-year profit was likely to be lower than the £3.35m reported last year.

It also revealed that it was abandoning its foray into the tourism sector and would be scrapping its planned visitor centre in Stoke-on-Trent, where the potteries are based.

Portmeirion's hopes for the second half rest on its new Starfire Collection range of table and giftware. It said the initial reaction had been "very positive and should contribute to an upturn in sales". Overall sales in July increased by 9 per cent over last year.

The company said it would maintain an unchanged interim dividend of 3.3p per share, although earnings do not cover this. No one at Portmeirion was available for comment.