News

Pittards posts lacklustre results

07 March 2007 16:46:00

Leather manufacturer Pittards posted a profitable set of results on Wednesday, albeit based on extraordinary circumstances.

The shares closed down nearly 2.5% as the market weighed up a year of transition for the company.

Pre-tax profits have improved markedly, with the firm posting a £26.6m gain compared with a £10.4m loss in the previous year. These losses were written off as part of a company voluntary arrangement (CVA) and new capital raised to resolve the pension deficit issue was resolved.

The volume of glove leather sold increased by 13% but this was offset by a 2% fall in the average selling price.

Turnover has fallen sharply, going from £62.1m in 2005 to £40.1m as at December 31 2006. This is due to the company's decision to cease production at one of their major sites following structural changes to the firm's business model. Sale of the Leeds site has raised £0.8m.

Pittards is hoping to launch new leathers in both traditional and prospective markets in 2007. However chairman Stephen Boyd warns that the company may suffer for its high percentage export levels. "In the short to medium term the continuing weakness of the US dollar remains a threat."

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