Potter & Moore PLC (LSE:PAM), formerly Creightons PLC, delivered broadly unchanged annual revenue for the year ended 31 March 2026, with strong growth in its Private Label business helping to offset weaker contract manufacturing activity linked to one major customer.
The beauty and well-being products manufacturer also reported an improvement in gross margin following operational efficiencies and procurement savings, although higher employment costs weighed on earnings during the period.
Private Label Growth Supports Stable Performance
Revenue for the financial year came in at £53.8 million, broadly in line with the previous year, as 9% growth in Private Label sales and new customer wins balanced a significant reduction in contract manufacturing volumes.
Gross margin increased to 44.9%, reflecting continued progress in manufacturing efficiency, sourcing improvements and operational cost controls.
Despite the stronger margin, EBITDA and profit before tax declined as the business absorbed higher labour costs following increases to both the National Living Wage and National Insurance contributions.
The company also strengthened its financial position, ending the year with higher net cash, while the board recommended an increased final dividend for shareholders.
Business Investing in Productivity and Technology
During the year, Potter & Moore continued to invest in projects designed to improve efficiency and support future expansion.
These initiatives included the rollout of a new warehouse management system, greater use of digital manufacturing tools and AI-powered artwork automation. The company also expanded its sales team as it seeks to accelerate growth across its core markets.
Management has completed a strategic review that sets out priorities for the next five years, with a focus on expanding the Private Label business, streamlining the company’s portfolio of brands, increasing automation and artificial intelligence across operations, and exploring opportunities in the wider wellness sector.
The recent corporate rebranding from Creightons PLC to Potter & Moore is intended to better align the listed company with its established trading identity and improve recognition among customers and investors.
Board Refresh and Operational Plans Continue
Potter & Moore is also making changes to its board, with two directors stepping down at the upcoming annual meeting and a recruitment process underway for a new independent non-executive director.
Alongside the governance changes, the company is reviewing how best to optimise its manufacturing facilities while preparing to introduce a new core enterprise resource planning (ERP) system incorporating AI capabilities. Management expects the investment to enhance productivity and support sustainable long-term growth.
Outlook Supported by Strong Balance Sheet
The company’s outlook continues to benefit from a solid balance sheet and what it considers an attractive valuation, supported by a relatively low price-to-earnings ratio.
However, weaker free cash flow growth remains an area to monitor, while technical indicators continue to point to a cautious near-term market trend despite the group’s underlying financial strength.
About Potter & Moore PLC
Potter & Moore PLC is a UK-based beauty and well-being products company that develops, manufactures and supplies both Private Label and owned brands to retailers and commercial partners.
The group focuses on research-led product innovation, expanding its leadership in the Private Label market and pursuing new opportunities within the growing wellness sector.
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