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Sep 30, 2020
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Revenues halve at leather goods maker Pittards as pandemic takes its toll

Published
Sep 30, 2020

Revenues at UK-based leather goods manufacturer Pittards dipped by more 45% to £6.6 million in the first half of the year, hurt by the impact of the global pandemic.


Pittards owns quintessential English leather goods brand Daines & Hathaway - Daines & Hathaway


In a trading update released on Wednesday, the company posted an Ebitda loss of £1.3 million, compared to an Ebitda profit of £1.2 million in the same period last year.

CEO Reg Hankey blamed widespread Covid-19 disruption for the poor performance. The historic business, which manufactures both leather and finished product at its headquarters in Yeovil in Somerset, said 90% of its sales are exported, making it highly vulnerable to fluctuations in global demand, logistics and supply chains. Pittards also has factories in the UK and Ethiopia, and its South Asian operations exposed it earlier to the coronavirus turbulence than a UK-centric business. 

The pre-tax loss for the six months ended 30 June reached £2.3 million, versus a pre-tax profit of £0.2 million in the prior year’s period. 

Despite the “challenging environment”, chairman Stephen Yapp assured investors the company will find its way through the global crisis. 

Sales have started to grow again across the shoe, automotive and speciality consumer goods divisions since the easing of lockdown restrictions, and both July and August traded with positive cashflow and Ebitda. 

Chairman Yapp said: “Despite the disruption of the first half, we enter the second half with renewed confidence and stability and with positive and improving cash flows. Our strategy to enlarge our portfolio of markets, products, improve quality of margin and lower our cost base, is showing clear signs of delivering benefits to the business. 

“Over 14% of sales in the first half compared to 1.5% in H1 2019 were from our new target markets, and overall sales have consistently risen from May through to August. We are well positioned to deliver positive operational cashflow in the second half together with a reduction in net debt compared to the half year.”

Established in 1826, the UK manufacturer also sells a premium collection of leather goods via its Daines & Hathaway range, as well as the Pittards England range of bags, gloves and garments.

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