Interim Results

Portmeirion Group PLC
16 August 2001


                            PORTMEIRION GROUP PLC

               INTERIM RESULTS FOR THE YEAR ENDED 30 JUNE 2001


CHAIRMAN'S STATEMENT


Financial Highlights:


                                      First Half       First Half      Decrease
                                            2001             2000             %
                                          £000's           £000's

Turnover                                  13,552           14,898           9.0
Profit before tax                            262            1,097          76.1
Earnings per share                         1.57p            7.09p          77.9
Interim dividend per share                 3.30p            3.30p             -



Results

First half sales were down by 9.0% compared to last year's.  Profit before tax
fell by 76.1% and earnings per share by 77.9%.



Dividend

The Board has decided to declare an unchanged interim dividend of 3.30p per
share, payable on 1st October 2001, to shareholders on the register on 14th
September 2001.



Trading Performance

It has been a difficult first half, with negative pressures in both of our
main markets.

In the UK sales were adversely affected in the first quarter by a reduction in
the number of overseas visitors, due to the foot and mouth epidemic.  Sales
for the first quarter were 12% down on the previous year.  However, in the
second quarter sales in the UK improved and were only 3% below last year by
the end of the half.

The economic slow-down in the USA has led to falling demand generally, and
significant destocking by our retail customers.  Although our new product
ranges introduced in the spring have been well received, the overall lack of
demand in the market has resulted in sales that are 13% lower than last year
in the United States.

Despite careful management of costs, it was inevitable that a sales reduction
of this magnitude would affect profitability, and first half pre-tax profits
are lower by 76%.

The Board believes that the timing of a recovery from the current slow-down is
difficult to predict.  However, the down-turn in sales is not specific to the
Portmeirion product range.  The balance sheet remains strong, and the Board,
therefore, feel justified in maintaining the dividend.

We are now delivering our revolutionary new table and giftware range, The
Starfire Collection in both the United States and the home market.  The
initial reaction has been very positive, and should contribute to an upturn in
the sales trend.  The second half of the year has started with overall sales
in July increasing by 9% over last year.

Following a major review of our intended Visitor Centre project by independent
specialist consultants, the Board has decided to invest in its core business,
rather than developing the tourism sector, in order to further enhance
Portmeirion's ceramic manufacturing in Stoke-on-Trent.

Although there are now some positive indications for the second half, it would
be unrealistic to expect full year profits to recover completely, and I,
therefore, believe that profit before tax for the full year ended 31st
December 2001 is likely to fall below the level achieved in the year ended
31st December 2000.



Management Team

Kami Farhadi, Group Chief Executive, has resigned his directorship of the
Company and other group companies with effect from 15th August 2001, and I
thank him for his contribution to the development of the Company.

With immediate effect, Lawrence Bryan is appointed Group Chief Executive. He
has been president of Portmeirion USA since 1998. His career in the glass,
ceramics and gift industry is extensive, and he was instrumental in the
turnaround of Portmeirion USA in 1999 and 2000.

Alan Miles is appointed Managing Director of Portmeirion Potteries Ltd, our
main UK trading subsidiary. He has been our Sales & Marketing Director since
1996, and has a broad spectrum of business experience, including
manufacturing, merchanting, retailing and international distribution.

I believe this new management team has all the qualities necessary to lead the
Group to future success.



Future

Despite the short-term difficulties we face, I believe the company's strategy
of high quality design, and brand promotion of an increasing range of
homewares and gift products, will ensure a return to growth in sales and,
therefore, profits.


Arthur Ralley

Chairman

16th August 2001




INDEPENDENT REVIEW REPORT TO PORTMEIRION GROUP PLC


Introduction

We have been instructed by the company to review the financial information for
the six months ended 30 June 2001 which comprises the profit and loss account,
the balance sheet, the cash flow statement, reconciliation of net cash flow to
movement in net funds and related notes 1 to 9.  We have read the other
information contained in the interim report and considered whether it contains
any apparent misstatements or material inconsistencies with the financial
information.



Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors.  The directors
are responsible for preparing the interim report in accordance with the
Listing Rules of the Financial Services Authority which require that the
accounting policies and presentation applied to the interim figures should be
consistent with those applied in preparing the preceding annual accounts
except where any changes, and the reasons for them, are disclosed.



Review work performed

We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom.
A review consists principally of making enquiries of group management and
applying analytical procedures to the financial information and underlying
financial data and based thereon, assessing whether the accounting policies
and presentation have been consistently applied unless otherwise disclosed.  A
review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions.  It is substantially less in scope than
an audit performed in accordance with United Kingdom Auditing Standards and
therefore provides a lower level of assurance than an audit.  Accordingly, we
do not express an audit opinion on the financial information.



Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2001 .



Deloitte & Touche
Chartered Accountants
Colmore Gate
2 Colmore Row
Birmingham
B3 2BN

16 August 2001


CONSOLIDATED PROFIT AND LOSS ACCOUNT


                                   Notes      Six            Six           Year
                                           Months         Months
                                               to             to             to
                                          30.6.01        30.6.00       31.12.00
                                           £000's         £000's         £000's

Turnover - continuing operations     6     13,552         14,898         30,727


Raw materials and operating costs        (13,535)       (14,048)       (27,958)


Operating profit - continuing                  17            850          2,769
operations


Share of profit of associated                  85             71            254
undertakings
Interest receivable and similar               160            176            328
income

Profit on ordinary activities                 262          1,097          3,351
before taxation


Taxation on profit on ordinary               (99)          (360)        (1,046)
activities

Profit for the period                         163            737          2,305


Dividends                                   (343)          (343)        (1,377)

Retained (loss)/profit for the              (180)            394            928
period


Earnings per share                   4      1.57p          7.09p         22.19p

Diluted earnings per share           4      1.57p          7.09p         22.17p

Dividend per share                   5      3.30p          3.30p         13.25p



                          See notes on pages 8 and 9


CONSOLIDATED BALANCE SHEET


                          As at 30.6.01       As at 30.6.00           As at
                                                                   31.12.00
                       £000's £000's       £000's £000's         £000's  £000's

Fixed assets
Tangible assets                9,120               9,243                  9,119
Investments                    1,336               1,152                  1,262

                              10,456              10,395                 10,381


Current assets
Stocks                  7,841               6,837                 6,574
Debtors                 6,453               5,891                 5,978
Cash at bank and in     4,320               5,930                 7,138
hand

                       18,614              18,658                19,690

Creditors: amounts falling
due within one year    (4,092)              (4,534)               (4,950)

Net current assets            14,522              14,124                 14,740

Net assets                    24,978              24,519                 25,121

Capital and reserves
Called up share                  519                 519                    519
capital
Share premium account          4,536               4,536                  4,536
Profit and loss               19,923              19,464                 20,066
account

Equity shareholders'          24,978              24,519                 25,121
funds


CONSOLIDATED CASH FLOW STATEMENT


                                    Notes     Six           Six           Year
                                           Months        Months
                                               to            to             to
                                          30.6.01       30.6.00       31.12.00
                                           £000's        £000's         £000's

Cash flow from operating activities   8   (1,042)         (291)          2,255

Dividends received from associates              -             -            118

Returns on investments and            9       164           181            315
servicing of finance

Taxation                                    (360)         (157)          (826)

Capital expenditure and financial     9     (546)         (342)          (920)
investment

Equity dividends paid                     (1,034)       (1,034)        (1,377)

Cash outflow before use of liquid
resources and financing                   (2,818)       (1,643)          (435)

Management of liquid resources              2,438            41        (1,125)

Decrease in cash in the period              (380)       (1,602)        (1,560)



Note to cash flow statement:
Reconciliation of net cash flow to movement in net funds

Decrease in cash in the period              (380)       (1,602)       (1,560)

Cash (inflow)/outflow from (decrease)
/increase in liquid resources             (2,438)          (41)         1,125

Net funds at 1st January                    7,138         7,573         7,573

Net funds at period end                7    4,320         5,930         7,138



                          See notes on pages 8 and 9




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


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


                                            Six            Six             Year
                                         Months         Months
                                             to             to               to
                                        30.6.01        30.6.00         31.12.00
                                         £000's         £000's           £000's

Profit for the period                       163            737            2,305

Currency translation differences             37             13               81

Total recognised gains and losses for       200            750            2,386
the period




RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

                                          Six             Six              Year
                                       Months          Months
                                           to              to                to
                                      30.6.01         30.6.00          31.12.00
                                       £000's          £000's            £000's

Profit for the period                     163             737             2,305

Dividends                               (343)           (343)           (1,377)

Currency translation differences           37              13                81

Net (reduction)/addition to             (143)             407             1,009
shareholders' funds

Opening shareholders' funds            25,121          24,112            24,112

Closing shareholders' funds            24,978          24,519            25,121



NOTES

1.            The consolidated profit and loss account for the six months
ended 30 June 2001 and balance sheet at that date have been reviewed by the
auditors but not audited. The consolidated profit and loss account for the six
months ended 30 June 2000 and balance sheet at that date have neither been
reviewed by the auditors nor audited.



2.            The comparative figures for the financial year ended 31 December
2000 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.



3.            This Interim Report has been prepared in accordance with the
accounting policies set out in the Group's 2000 Report and Accounts.



4.            The earnings per share are calculated on earnings of £163,000
(2000 - £737,000) and the weighted average number of Ordinary shares of
10,389,230 (2000 - 10,389,230) in issue during the period. The options in
existence during the six months ended 30 June 2001 and 2000 have a negligible
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 (2000 - 3.3p) per Ordinary share will be paid
on 1 October 2001 to shareholders on the register on 14 September 2001.



6.            Turnover by destination
                                             Six           Six            Year
                                          Months        Months
                                              to            to              to
                                         30.6.01       30.6.00        31.12.00
                                          £000's        £000's          £000's

      United Kingdom                       5,555         5,751          11,941
      North America                        5,775         6,688          14,429
      European Union                       1,140         1,496           2,501
      Far East                               688           546           1,155
      Rest of the World                      394           417             701

                                          13,552        14,898          30,727

7.    Analysis of net funds
                                           As at         As at           As at
                                         30.6.01       30.6.00        31.12.00
                                          £000's        £000's          £000's

      Cash in hand, at bank                  748         1,086           1,128
      Short term money market              3,572         4,844           6,010
      deposits

      Total                                4,320         5,930           7,138



8.            Reconciliation of operating profit to operating cash flows

                                            Six           Six             Year
                                         Months        Months
                                             to            to               to
                                        30.6.01       30.6.00         31.12.00
                                         £000's        £000's           £000's

Operating profit                             17           850            2,769
Depreciation                                562           601            1,234
Exchange gain/(loss)                         13           (4)               66
Profit on sale of tangible fixed assets    (17)          (61)             (25)
Increase in stocks                      (1,267)         (661)            (398)
Increase in debtors                       (414)       (1,444)          (1,525)
Increase in creditors                        64           428              134

Net cash (outflow)/inflow from          (1,042)         (291)            2,255
operating activities

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
                                 to 30.6.01        to 30.6.00        31.12.00
                              £000's   £000's   £000's   £000's   £000's  £000's


Returns on investments
and servicing of finance
Interest received               164               181                315

Net cash inflow for returns
on investments and
  servicing of finance                  164               181               315

Capital expenditure and
financial investment
Purchase of tangible          (628)             (446)             (1,062)
fixed assets
Sale of tangible fixed           82               104                142
assets

Net cash outflow for capital
expenditure and                     
financial investments                   (546)            (342)            (920)