Potter & Moore raises dividend despite lower earnings amid headwinds

Potter & Moore PLC on Monday reported lower earnings for the full financial year, but raised its dividend.

The Peterborough, England-based beauty and wellbeing consumer goods manufacturer, formerly known as Creightons, said pretax profit fell 19% to £2.8 million in the 12 months to the end of March from £3.5 million a year prior.

Revenue edged down 0.4% to £53.8 million from £54.1 million, while administrative expenses grew 4.3% to £18.6 million from £17.9 million.

Potter & Moore proposed a final dividend of 0.55 pence per share for financial 2026, up 10% from 0.50p a year prior.

"This recommendation is consistent with our progressive dividend policy, under which we aim to grow the dividend sustainably over time whilst maintaining appropriate levels of investment in the business and preserving balance sheet strength," the company added.

Chair Paul Forster said the results were a "creditable performance" given "external factors which have adversely impacted on performance".

Forster added: "The investment in resources to deliver increased revenue started to produce results in FY2026 which is expected to accelerate into FY2027. The group remains in a strong financial position to take advantage of any opportunities that may arise."

Potter & Moore noted continued challenges during financial 2027, including rising costs from petro-chemical linked materials, energy-exposed suppliers and the higher national living wage.

It added: "Middle East trade carries regional conflict risk, though Saudi Arabia, the source of most group revenue there, remains unaffected to date, growth elsewhere in the region may be slower to emerge. Customer credit risk remains elevated as economic pressures strain retail customers. AI and broader technological change pose a competitive risk if not capitalised on early. The group is developing policies to harness AI benefits while protecting data confidentiality."

The company said it is in an "excellent position" to take advantage of any opportunities while managing downside risks.

Chair Forster said: "The investment in sales, marketing, product sourcing and development has started to pay dividends and will ensure the group can take advantage of more opportunities over the coming year. The lead times involved in delivering revenue from new ranges and listing from new customers means we expect to see significant benefits until in the second half of FY2027."

Shares in Potter & Moore were up 1.4% at 24.85 pence on Monday afternoon in London.

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