Turnover up at Pittards

Tanners Pittards have recorded turnover of £45.1 million (US$67 million) in the first half of 2001, up 11% on the same period of the previous year. However, profit before tax was £79,000 (US$115,596), down from £1.7 million (US$2.5 million) in the first half of 2000. Chairman Robert C Tomkinson said that the downturn in the company's profits was 'primarily a result of the exceptional raw material issues with which we have had to contend over the past twelve months'. Tomkinson warned in April of the significant increases in costs that Pittards were experiencing as a result of the reduced availability of UK hides and sheepskins and of importing raw materials from non-UK sources. After taking into account the raw material issues, group operating profit fell to £350,000 (US$512,066) compared to £1.9 million (US$2.8 million) in the first half of 2000. Turnover in the Glove Leather Division was virtually unchanged from the first half of last year. The division's raw material costs were substantially higher than in the previous year. The disruption to the hides and skins market as the result of BSE and FMD in the UK caused buyers to seek supplies from non-traditional sources. As a result, the division only just broke even in the first six months. In contrast, the Shoe & Leathergoods Division performed well in difficult circumstances with both value and volume sales up by 16% and 5% respectively. More hides had to be imported from the US and northern Europe at an increased cost, but nevertheless, the division made a modest profit in the period. Tomkinson added: 'The general economic outlook - and that for the US in particular - prompts us to be extremely cautious about the prospects for the rest of the year.'