Interim Results

PORTMEIRION POTTERIES (HOLDINGS) PLC
13 August 1999



                        INTERIM RESULTS
                               


CHAIRMAN'S STATEMENT
                               
Financial Highlights


                             First Half   First Half             
                                   1999         1998     Decrease
                                 £000's       £000's            %
                                                                 
Turnover                         13,124       13,252        (1.0)
Profit before tax                   926        1,053       (12.1)
Earnings per share                5.86p        6.69p       (12.4)
Interim Dividend per share        3.30p        3.30p          -


Results
-------
First half sales are down by 1% on last year's.  Profit before tax and
earnings per share fell by 12%.  However, the results for the first
six months of 1998 included £393,000, the costs of management
restructuring in the UK and the USA. This year's first half
includes increased investment of some £160,000 in consumer
advertising. Margins have also been affected both by the clearance
of slow moving stocks and start-up costs for new products.

Dividend
--------
The Board has decided to declare an unchanged interim dividend of 3.30p
per share payable on 1st October 1999 to shareholders on the
register on 17th September 1999.

Trading Performance
-------------------
Over the last twelve months a good start has been made in restoring the
Company to healthy growth.

A year ago we faced a serious deterioration of our sales and market
position in the USA.  Today our position has been restored, surplus
stock, which was blocking sales, has been cleared.  US dollar sales
in the first half were 6% up on the same period last year. The
outlook for the rest of the year is favourable.

We needed to revivify our product offer. 'The Seasons Collection', our
new range, has met with a decisive welcome in major markets.  We
are continuing its active development.

Production was faced with some problems, but our strengthened production
team is rapidly overcoming them and raising output and efficiency.
Management is fundamental to our recovery.  Kami Farhadi, Chief
Executive, has shown that he has the vision to refocus our policies
and has created an enthusiastic and effective team.

Year 2000 Compliance
--------------------
The Company has assessed the likely impact and extent of the Year 2000
problem to the business.  The principal software applications used
by the Company are in the process of being replaced, with the first
applications having been implemented on 1st March 1999.  The new
software has been certified as Year 2000 compliant by the authors.
However, the principal reasons for replacing the software are the
improvement of business effectiveness and efficiencies.  Year 2000
compliance is seen as an additional benefit, the cost of which is
not separately identifiable.

Action plans have been developed to address Year 2000 compliance issues
in areas of the business, other than computer systems.  These plans
include ascertaining suppliers' compliance to ensure continuity of
supply.  The additional revenue costs of implementing these plans
are not material.

Future
------
The Company is in negotiations to acquire a 4.8 acre freehold site close
to our Stoke factory.  This should almost immediately enable us to
manufacture glazed items planned for next year's product programme
of 'The Seasons Collection'.  It will also provide space for us to
reorganise our production without interfering with the smooth
operation of the Stoke factory.

The start to the second half has been difficult.  However, we have
improved production and have launched an excellent new collection
on which we will continue to build.  We are confident that our
continued investment in the Portmeirion brand will bear fruit.



Euan Cooper-Willis
Chairman
13th August 1999



CONSOLIDATED PROFIT AND LOSS ACCOUNT
(unaudited)


                         Notes    Six Months   Six Months      Year to
                                  to 30.6.99   to 30.6.98     31.12.98
                                      £000's       £000's       £000's
                                                                      
Turnover - continuing                                                 
 operations                  6        13,124       13,252       26,013
                                                                      
Raw materials and                                                     
 operating costs                    (12,451)     (12,576)     (24,877)
                                     -------      -------      -------
Operating profit -                                                    
 continuing operations                   673          676        1,136
                                                                      
Share of profit                                                       
 of associated                                                        
 undertakings                             64          121          191
                                                                      
Interest receivable and                                               
 similar income                          190          258          496
                                                                      
Amounts written off                                                   
 investments                               -            -        (816)
                                                                      
Interest payable and                                                  
 similar charges                         (1)          (2)          (3)
                                     -------      -------      -------
Profit on ordinary                                                    
 activities before                                                    
 taxation                                926        1,053        1,004
                                                                      
Taxation on profit                                                    
 on ordinary activities                (317)        (358)        (656)
                                     -------      -------      -------
Profit for the period                    609          695          348
                                                                      
Dividends                              (343)        (343)      (1,377)
                                     -------      -------      -------
Retained profit/(loss)                                                   
 for the period                          266          352      (1,029)
                                     =======      =======      =======
                                                                      
Earnings per share           4         5.86p        6.69p        3.35p
                                     =======      =======      =======
Diluted earnings per         4                                        
 share                                 5.86p        6.69p        3.35p
                                     =======      =======      =======
Dividend per share           5         3.30p        3.30p       13.25p
                                     =======      =======      =======


See Notes



CONSOLIDATED BALANCE SHEET
(Unaudited)


                         As at             As at             As at
                        30.6.99           30.6.98           31.12.98
                     £000's   £000's   £000's   £000's   £000's   £000's
                                                                        
Fixed assets                                                            
                                                                        
Tangible assets                9,253             9,175             9,391
Investments                    1,160             2,006             1,080
                              ------            ------            ------
                              10,413            11,181            10,471
                                                                        
Current assets                                                          
                                                                        
Stocks                5,505             6,191             5,304         
Debtors               5,725             5,395             4,452         
Cash at bank and                                                        
 in hand              7,197             7,119             8,202
                     ------            ------            ------         
                     18,427            18,705            17,958         
                                                                        
Creditors: amounts                                                      
 falling due                                                   
 within              (4,985)           (4,961)           (4,974)
 one year
                     ------            ------            ------         
                                                                        
Net current assets            13,442            13,744            12,984
                              ------            ------            ------
                                                                        
Net assets                    23,855            24,925            23,455
                              ======            ======            ======
                                                                        
Capital and                                                             
reserves
                                                                        
Called up share                                                         
 capital                         519               519               519
Share premium                                                           
 account                       4,536             4,536             4,536
Profit and loss                                                         
 account                      18,800            19,870            18,400
                              ------            ------            ------
Equity                                                                  
 shareholders'                23,855            24,925            23,455
 funds
                              ======            ======            ======




CONSOLIDATED CASH FLOW STATEMENT
(Unaudited)


                                                   Restated               
                       Notes      Six Months     Six Months        Year to
                                  to 30.6.99     to 30.6.98       31.12.98
                                      £000's         £000's         £000's
                                                                          
Cash flow from                                                            
 operating                 8             407            388          3,448
 activities
                                                                          
Returns on                                                                
 investments and                                                          
 servicing of              9             192            254            494
 finance
                                                                          
Taxation                               (103)          (381)        (1,384)
                                                                          
Capital expenditure                                                       
 and financial                                                            
 investment                9           (467)          (275)        (1,145)
                                                                          
Equity dividends                                                          
 paid                                (1,034)        (1,033)        (1,377)
                                     -------        -------        -------
Cash                                                                      
 (outflow)/inflow                                                         
 before use of                                                            
 liquid resources                                                         
 and financing                       (1,005)        (1,047)             36
                                                                          
Management of liquid                                                      
 resources                               372          4,092          4,128
                                     -------        -------        -------
(Decrease)/increase                                                       
 in cash in the                                                           
 period                                (633)          3,045          4,164
                                     =======        =======        =======
Reconciliation of                                                         
 net cash flow to
 movement in net
 funds
                                                                          
(Decrease)/increase                                                       
 in cash in the                                                           
 period                                (633)          3,045          4,164
                                                                          
Cash inflow from                                                          
 decrease in                                                              
 liquid resources                      (372)        (4,092)        (4,128)
                                                                          
Net funds at 1st                                                          
 January                               8,202          8,166          8,166
                                      ------         ------         ------
Net funds at                                                              
 period end                7           7,197          7,119          8,202
                                      ======         ======         ======


See Notes


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
(Unaudited)


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


                        Six Months      Six Months        Year to
                        to 30.6.99      to 30.6.98       31.12.98
                            £000's          £000's         £000's
                                                                 
Profit for the                                                   
 period                        609             695            348
                                                                 
Currency translation                                             
 differences                   134            (11)          (100)
                           -------         -------        -------
Total recognised                                                 
 gains and losses                                                
 for the period                743             684            248
                           =======         =======        =======

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS


                        Six Months      Six Months        Year to
                        to 30.6.99      to 30.6.98       31.12.98
                            £000's          £000's         £000's
                                                                 
Profit for the                                                   
 period                        609             695            348
                                                                 
Dividends                    (343)           (343)        (1,377)
                                                                 
Currency translation                                             
 differences                   134            (11)          (100)
                           -------         -------        -------
Net addition to                                                  
 shareholders' funds           400             341        (1,129)
                                                                 
Opening                                                          
 shareholders'              23,455          24,584         24,584
 funds
                           -------         -------        -------
Closing                                                          
 shareholders'              23,855          24,925         23,455
 funds
                           =======         =======        =======
                     

NOTES                
(Unaudited)                                                     
                                                                
                                                                
1.   The consolidated profit and loss accounts for the six
     months ended 30 June 1999 and 30 June 1998 and balance
     sheets at those dates have neither been reviewed nor
     audited.
     
2.   The comparative figures for the financial year ended 31
     December 1998 are not the Group's statutory accounts for
     that year.  Those accounts have been reported on by the
     Group's auditors and delivered to the Registrar of
     Companies.  The report of the auditors was unqualified and
     did not contain a statement under Section 237(2) or (3) of
     the Companies Act 1985.  The comparatives in the analysis
     of turnover by destination have been amended to be
     consistent with the current period classification.
     
3.   This Interim Statement has been prepared in accordance with
     the accounting policies set out in the Group's 1998 Report
     and Accounts.
     
4.   The earnings per share are calculated on earnings of
     £609,000 (1998 - £695,000) and the weighted average number 
     of Ordinary shares of 10,389,230 (1998 - 10,389,230) in issue 
     during the period.  The options in existence during the six 
     months ended 30 June 1999 and 1998 do not have a dilutive effect
     as defined by FRS 14 and therefore the diluted earnings per
     share under FRS 14 are the same as the basic earnings per
     share.
     
5.   A dividend of 3.3p (1998 - 3.3p) per Ordinary share will be
     paid on 1 October 1999 to shareholders on the register on 17
     September 1999.
     
6.   Turnover by destination
                                                                   
                                                                   
                                              Restated     Restated
                              Six Months    Six Months         Year
                              to 30.6.99    to 30.6.98  to 31.12.98
                                  £000's        £000's       £000's
                                                                   
United Kingdom                     4,687         5,268       10,528
North America                      5,897         5,582       11,258
European Union                     1,265         1,238        2,043
Far East                             675           200          481
Rest of the World                    600           964        1,703
                                 -------       -------      -------
                                  13,124        13,252       26,013
                                 =======       =======      =======
                                                                   
     
7.   Analysis of net funds
                                                                   
                                                                   
                                              Restated             
                                   As at         As at        As at
                                 30.6.99       30.6.98     31.12.98
                                  £000's        £000's       £000's
                                                                   
Cash at bank and in hand           7,197         6,711        7,830
Short term money market                                            
 deposits                              -           408          372
                                 -------       -------      -------
Total                              7,197         7,119        8,202
                                 =======       =======      =======
     
The balances as at 30 June 1998 have been restated to separately
disclose liquid resources previously included within cash to more
properly accord with the requirements of FRS1 (Revised 1996) 'Cash
Flow Statements'.
     

8.   Reconciliation of operating profit to operating cash flows
                                                                   
                                                                   
                              Six Months    Six Months         Year
                              to 30.6.99    to 30.6.98  to 31.12.98
                                  £000's        £000's       £000's
                                                                   
Operating profit                     673           676        1,136
                                                                   
Depreciation                         580           532        1,097
                                                                   
Exchange gain/(loss)                  93            16         (62)
                                                                   
Loss on sale of tangible                                           
 fixed assets                         25             7           96
                                                                   
(Increase)/decrease in                                             
 stocks                            (201)           156        1,043
                                                                   
(Increase)/decrease in                                             
 debtors                         (1,276)         (829)           91
                                                                   
Increase/(decrease) in                                             
 creditors                           513         (170)           47
                                 -------       -------      -------
Net cash inflow from                                               
 operating activities                407           388        3,448
                                 =======       =======      =======
     
All of the above relate to continuing operations.
     
9.   Analysis of cash flows for headings netted in the cash flow
     statement
                                                                         
                                                                         
                            Six Months      Six Months          Year
                            to 30.6.99      to 30.6.98      to 31.12.98
                          £000's  £000's  £000's   £000's  £000's  £000's
                                                                         
Returns on investments                                                   
 and servicing of
 finance
                                                                         
Interest received            193             256              497        
                                                                         
Interest paid                (1)             (2)              (3)        
                          ------          ------           ------        
Net cash inflow for                                                      
 returns on investments                                                  
 and servicing of                                                        
 finance                             192              254             494
                                  ======           ======          ======
Capital expenditure and                                                  
 financial investment
                                                                         
Purchase of tangible                                                     
 fixed assets              (585)           (317)          (1,221)
                                                                
                                                                         
Sale of tangible fixed                                                   
 assets                      118              42               76
                          ------          ------           ------        
Net cash outflow for                                                     
 capital expenditure                                                     
 and financial                     
 investments               (467)            (275)         (1,145)             
                          ======           ======          ======

Copies of this statement are being posted to Shareholders and are
available from the Company's Registered Office, London Road,
Stoke-on-Trent, Staffs ST4 7QQ.