Portmeirion’s unscheduled trading update reports that H2 trading has been weaker than anticipated. This is principally due to supply disruption into the US and continued softness in South Korea. Home fragrance performance has been ahead of our expectations. As a result, we lower FY24 PBT from £4.5m to £1.0m on revised sales of £90m. Whilst disappointing to be cutting forecasts again, we maintain that with a largely rebased cost structure and positive strategic execution in the last few years, operational gearing should work in Portmeirion’s favour once market conditions improve. For now we move from Buy to Hold and put our 12m TP under review.
