Portmeirion shares crack on profit warning

Shares in homewares specialist Portmeirion Group fell by almost a quarter after its warns full-year pre-tax profits will be materially below the record £8.6m booked in 2015.

Total revenue for 2016 was seen ahead of the prior year, because of the recent acquisition of the Wax Lyrical candles and aromatherapy business.

"However, pre-tax profits are expected to be materially below the record level of £8.6 million reported for 2015," the company said.

Portmeirion added that sales to South Korea had shown no signs of recovery and the performance of its distributor in India had continued to be extremely disappointing.

"In addition we have seen negative effects on demand in the UK before and following the leave vote at the EU referendum," it said, noting that the potential benefits of a weaker pound have yet to translate into firm overseas orders.

"However, the United States continues to perform well."

The company also said it intended to lift its 2016 interim dividend by about 14%, in line with the final dividend for 2015 and policy.

"This will mean that dividend cover for 2016 will fall marginally below our historic guideline of two times; our longer term view is that we can accommodate a temporary reduction in cover."

At 12:37 BST, shares in Portmeirion were down 2.182% to 860p.