Market's view on Portmeirion
Published on April 2024
- Simon Thompson advised holding Portmeirion stocks at 245p despite recent price falls, citing potential offset by restructuring and productivity improvements.
- Analysis from Small Caps Life suggested skepticism about the financial recovery of the business, considering it hard to trust a rebound anytime soon.
- Concerns were raised about the absence of a solid investment case for Portmeirion currently.
- Positive note on Portmeirion reducing net debt and making a profit when excluding home fragrance write-down.
- Preliminary financial results were weaker than expected, with a pessimistic commentary.
- Discussions around the share price potentially bottoming out following a satisfactory trading update and concerns about the dividend’s sustainability.
- Changing social trends towards more informal entertaining were noted as a significant headwind for demand for formal dinnerware.
- Observations made that higher interest costs could be impacting Portmeirion’s bottom line negatively.
- Expectations were set for a return to growth in sales and operating margin improvement for 2024.
- It was noted that Portmeirion’s share price is at all-time lows despite seeming insider confidence through CEO and FD share purchases.
- Concerns about Portmeirion’s ability to turn a profit in 2024 due to high inflation and reduced inventory.
- The market’s pessimism was mentioned as a factor in the company’s stock performance, requiring patience from investors.
- Discussions around a recent trading update being mixed with expectations for 2024 to be challenging.
- Speculation about the intentions and actions of significant shareholders and who might be selling their stakes.