Portmeirion's recent success reflects a move in manufacturing to the Far East and the ceramics designer sees further growth coming from acquisitions and licensing deals.

Recent interim results to June showed sales up 19% to £14.5m and a 12% increase in operating profits to £838,000, as the traditional Botanic Garden range continued to perform and the new licensed ranges proved successful. Chief executive Lawrence Bryan plans expand on the success of the company’s licence deals, achieved with the likes of Sophie Conran, Jacqueline Wilson’s Tracy Beaker character and Eric Carle’s Very Hungry Caterpillar.

Bryan is also keen to diversify the product range, a process that began with last October’s acquisition of placemats business Pimpernel. He admits to ‘actively looking’ for tableware companies to purchase, ‘possibly outside of ceramics’, and has £2m of cash available for deals.

Portmeirion's efforts to outsource production to minimise exposure to the unfriendly UK manufacturing conditions are heading towards a 50-50 split between the UK and Far East by 2009. The majority of revenues come from abroad and products are bought in US dollars to provide a natural hedge, with the States being its second-biggest market.

The group's move to lower-cost production and the licensing of designer brands have proven astute and the shares, recommended by Growth Company Investor at 167.5p in late 2004, have had a good run accordingly. If you bought around that price, it could be worth taking some profits, although expansionary plans bode well for this cash-generative outfit.

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Portmeirion	AIM	£12.15m	122.50p	0.00p
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