POTTERY company Portmeirion is expecting to report record annual sales – for the third year running.

The Stoke-based manufacturer has announced that it expects revenue for the year to December 31 to exceed £53 million, about four per cent up compared with the previous 12 months.

And directors said sales would be even higher were it not for fluctuating exchange rates.

A spokesman said: "This is the third year running that the group has reported record revenues, despite the continuing difficult economic environment and an adverse U.S. dollar exchange rate effect.

"If the same exchange rate used to translate U.S. dollar sales in 2010 was applied, then 2011 group revenues would show a six per cent increase over the previous year."

Portmeirion, which employs more than 500 people at its London Road factory and Trentham warehouse, said sales in its three biggest markets (the U.S., the UK and South Korea) all increased.

It is expecting pre-tax profits to be in line with market expectations of £6 million when it announces its 2011 results in March.

Non-executive chairman Dick Steele said: "This robust performance has been achieved in the most challenging of economic environments.

"Our worldwide sales channels, strong brands, emphasis on design and insistence on quality all continue to underpin the success of our business."

Portmeirion also ended the year with a strong cash position; a net balance of £6.8 million on December 31, compared with £6.2 million the year before.

Analyst Freddie George, of Retail Research, said he was impressed with the firm's performance.

He said: "Portmeirion has an impressive track record. Profits in the period 2007 to 2011 are forecast to have grown by more than 15 per cent per annum, on sales up by 13 per cent per annum.

"It also has a unique position in the UK market.

"The company controls four premium brands, including Portmeirion, Pimpernel, Spode and Royal Worcester.

"It has a strong position in the faster-growing casual dining markets; has a worldwide reputation in China; faces relatively weak competition in the UK and is one of the few companies that still manufactures 45 per cent of its group sales, including Botanic Garden."

The Sentinel reported in August that Portmeirion had posted pre-tax profits of £1.4 million for the first six months of 2011, up 37 per cent from £1 million in the same period last year. Sales rose by six per cent, from £21.1 million to £22.3 million.

And production volumes at London Road were up 22 per cent compared with the same period the year before.

Last year the company landed a royal award for increasing exports by more than 60 per cent.

It received the Queen's Award for Enterprise in international trade after increasing export revenue by 63 per cent over the past three years to reach more than £38 million in 2010.

Export revenue accounted for 75 per cent of Portmeirion's record sales of £51.2 million that year.

Business Daily: Page 18