Pittards fortunes return
25 March 2009Pittards, the UK based tanning group made an operating profit of £1.4 ($1.9) million in 2008 turning around a loss of -£1.9 (-$2.7) million in 2007 and signalling a reversal in the company's fortunes. However, after considering exceptional items pre-tax results slipped into the red.
According to statement on the company's website the improvement in the Pittards fortunes have been assisted by the weakening of sterling and reduction in the company's UK cost base. In the statement from chairman, Stephen Boyd, it says that the strategy put in place in recent years is now coming to fruition.
Overall revenue was £26.4 ($37.5) million in 2008 down from £28.9 ($41.0) million in 2007 mainly due to lower sales in the casual footwear sector. The group made an operating loss of -£0.07 (-$0.10) million (compared with -£1.7 (-$2.4) million in 2007) after recognising foreign exchange contracts taken out earlier in the year to protect the group from further weakening of the US dollar. After bank interest of £0.3 ($0.4) million the loss before taxation was -£0.4 (-$0.6) million -£2.2 (-$3.1) million in 2007).
In the statement it reports that sales of glove and dress leather held up well while sales in casual footwear and sports gloving leather were lower.
Some lower priced items were relocated to the ETSC tannery in Ethiopia, which Pittards manage. ETSC operation is making a profit.
