Portmeirion has issued a brief AGM statement covering the traditionally quieter period of the year. Progress has been made YTD with geographical diversity and self-help being supportive features we understand. Overall, the expectation is for a flat H1 performance, which in the context of a challenging consumer backdrop would be a creditable outcome. We note USA has been singled out as showing customer caution in recent weeks re ordering and will need to be closely monitored over Q2. With c.80% of profits being H2 weighted, investors should welcome reference to initial Christmas order intake being ahead of the comparative period. NPD has also been well received. We make no forecast changes at this stage, opting to see how trading fares over the next few months. For reference we assume a conservative 2% top-line growth for FY23 and a 150bps EBIT margin improvement to primarily reflect an easing of supply side pressures and ongoing self-help benefits, e.g. automation. The shares have had a strong recovery (+68% YTD) from oversold levels and trade on a YR1 P/E of 10x, 5.6x EV/EBITDA and yield 3.4%.
