Driving sustainable growth
Our strategy is built around reaching ever more potential customers for our brands whilst focusing on further efficiency in everything we do. We expect this to deliver sustainable sales growth and improve operating margins, thereby driving increased profitability.
Progress
- Maintained strong online sales growth achieved during pandemic enforced store lockdowns.
- Total online channel sales now account for 51% of UK/US markets (2021: 50%, 2019: 30%).
- Re-platformed all UK websites to provide enhanced customer service and improved functionality.
Future outlook
- Ongoing investment in our own websites and digital/online presence across all platforms.
- Further utilisation of exclusive new product for online customers.
- Continue focus on deepening relationship with the end consumer and building lifetime value of customer.
The Board’s governance role
- The Board approves the long-term objectives and strategy, monitors performance and where necessary, ensures corrective action is taken.
Progress
- Strong performance in key heritage ranges Portmeirion Botanic Garden and Spode Christmas Tree.
- Resilient performance across all brands despite macro-economic headwinds.
- Improved digital assets have helped to drive better online sales performance.
Future outlook
- Comprehensive roadmaps completed for all brands to provide detailed plan for new product launches.
- Development of heritage product ranges and new collections which are brand focused and target both our traditional customer base and new consumers.
- Key digital assets planned for our new product launches to improve sales execution.
The Board’s governance role
- The Board oversees the Group’s operations to ensure competent and prudent management by the Executive Directors and the senior management team.
Progress
- Rest of world sales maintained at 11% of total despite widespread disruption in sales markets.
- Strong progress in growth markets of Canada, China and Malaysia.
- Road map of new product development to enhance customer offering in international markets.
Future outlook
- Long term aim to double rest of world sales against 2020 base.
- Target to build three new sizeable markets.
- Leverage our brands further with international growth in home fragrance and Nambé.
The Board’s governance role
- The Board reviews all financial performance of the Group in major markets.
Progress
- Strong new product performance including new items to support Portmeirion Botanic Garden 50th anniversary and Spode Christmas Tree seasonal trading.
- New product launches continue to contribute over 10% to total Group sales per annum.
- Robust pipeline of new product developed for future launch.
Future outlook
- Strong pipeline of new product for launch in 2023 including new Spode Kit Kemp collection.
- Ongoing product extensions in heritage ranges including highly successful Spode Christmas Tree range for 2023.
- New items to support AromaWorks London brand purchased in August 2022.
The Board’s governance role
- The Board regularly reviews commercial sales information to ensure the Group has a sustainable growth model.
Progress
- UK factories continue to improve efficiency with ongoing investment.
- Automation schemes in Stoke-onTrent factory implemented Q4 2021/ Q1 2022 enhanced capacity and efficiency.
- Successful uplift of AromaWorks manufacturing to provide additional throughput in home fragrance factory.
- Continue to manage supply chains despite ongoing disruption and inflation.
Future outlook
- Ongoing investment in factory efficiency projects will add output and improve efficiency.
- Further procurement savings available as we globalise our teams and obtain economies of scale.
- Ensure capacity in manufacturing and distribution to drive further sales and operating margin growth.
The Board’s governance role
- The Board approves the annual expenditure budgets and any material changes to them. Capital and operational expenditure over £250,000 must also be approved by the Board.