Portmeirion’s AGM update signals an “excellent start” to the year, building on the positive momentum seen in H2-20. Particularly pleasing is LFL sales growth in the period against the 2019 comparative, reflecting continued growth in online and international markets stabilising with good growth in the USA. So a good start to FY21 and further building on the positive direction of travel under a new and strengthened leadership team. Prudence around Covid19 and the fact that profitability is c80% H2 biased influences us to make no formal forecast changes at this juncture, but clearly if the positive momentum is sustained the risk is on the upside. We have been promoting the stock as a deep value recovery/growth play and it is pleasing to see the shares up 34% YTD. The strength of today’s update is a further step in the right direction and we see an FY22 P/E of 11.6x; 5.6x EV/EBITDA and a 9% FCF yield as undemanding. Investors should welcome today’s update and the share price make further headway.
