March 17, 2011
StockMarketWire.com - Leather group Pittards plc reported a profit from trading activities up 312% to £3.3m from £0.8m for the year to December.
Revenue increased by 47% to £36.1m, or 27% on a like-for-like basis excluding the Ethiopian Tannery Share Company, acquired in December 2009.
Profit before tax was £2.93m, against the previous £2.83m. EPS pre-exceptionals rose to 0.85p from 0.71p.
Pittards said its revenue increase reflected a major recovery in volumes from key customers, partly due to refilling of pipelines emptied during the global recession and partly in response to improved consumer demand.
Sales derived from skin-based products, which included sports, service and dress gloves, improved by 20% in value terms.
There was an upturn across all sectors to which gloves were sold. Sales of hide-based products rose 46%, with sports products particularly in demand.
Pittards said the acquisition of ETSC had yielded benefits in terms of better inventory control and better co-ordination between raw material purchasing and commercial selling.
It had provided the opportunity to sell some products direct to customers around the world rather than shipping them to England and then to the Far East.
A new garment production factory in Addis Ababa was expected to be operational before the end of the year. The group had also agreed to purchase a neighbouring factory for leather goods production, increasing its ability to produce high-quality goods in a lower-cost environment.
Net borrowings of £3.5m represented a substantial improvement over £6.2m at the end of 2009, with the group generating cash from operating activities of £3m. Gearing was reduced to 33% from 80%.
The group said it had have instructed lawyers to assist in restructuring its balance sheet to make payment of dividends possible.
Source: Story provided by StockMarketWire.com
StockMarketWire.com - Leather group Pittards plc reported a profit from trading activities up 312% to £3.3m from £0.8m for the year to December.
Revenue increased by 47% to £36.1m, or 27% on a like-for-like basis excluding the Ethiopian Tannery Share Company, acquired in December 2009.
Profit before tax was £2.93m, against the previous £2.83m. EPS pre-exceptionals rose to 0.85p from 0.71p.
Pittards said its revenue increase reflected a major recovery in volumes from key customers, partly due to refilling of pipelines emptied during the global recession and partly in response to improved consumer demand.
Sales derived from skin-based products, which included sports, service and dress gloves, improved by 20% in value terms.
There was an upturn across all sectors to which gloves were sold. Sales of hide-based products rose 46%, with sports products particularly in demand.
Pittards said the acquisition of ETSC had yielded benefits in terms of better inventory control and better co-ordination between raw material purchasing and commercial selling.
It had provided the opportunity to sell some products direct to customers around the world rather than shipping them to England and then to the Far East.
A new garment production factory in Addis Ababa was expected to be operational before the end of the year. The group had also agreed to purchase a neighbouring factory for leather goods production, increasing its ability to produce high-quality goods in a lower-cost environment.
Net borrowings of £3.5m represented a substantial improvement over £6.2m at the end of 2009, with the group generating cash from operating activities of £3m. Gearing was reduced to 33% from 80%.
The group said it had have instructed lawyers to assist in restructuring its balance sheet to make payment of dividends possible.
Source: Story provided by StockMarketWire.com
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