(Alliance News) - Leather goods manufacturer Pittards PLC on Thursday said its interim profit doubled on increased margins and despite a 16% drop in revenue.
The company said lower headcount in production, reduced raw material prices and currency gains led to increased margins which in turn increased profit.
For the six months to June 30, the company recorded pretax profit of GBP224,000, up from GBP96,000 recorded in the year ago period. Margins in the period improved to 29.7% from 25.1% at December 31.
Revenue plummeted year-on-year to GBP12.1 million from GBP14.5 million as a result of a decrease in orders from core customers and destocking within their supply chain. The company saw decline in orders within both its UK and Ethiopian divisions.
Pittards said it entered the second half of the year with a good order book, lower cost base and improved margins.
"Looking ahead, we are increasingly optimistic about the pipeline of opportunities within our core and targeted markets. Whilst this is set against an uncertain economic outlook, we expect the second half to be stronger than the first particularly in terms of profits and are confident our ongoing investment plans and strategy will deliver significant shareholder value as these fully mature," Chair Stephen Yapp said.
London-listed shares in Pittards were down 0.7% at 71.00 pence each on Thursday morning.
