(Alliance News) - Pittards PLC on Tuesday reported a rise in earnings for 2019 as it said it is putting a hold on its consideration of paying dividends and of the commencement of a share buyback program.
For 2019, the leather goods manufacturer posted pretax profit of GBP579,000, up 64% from GBP354,000 posted in 2018. Revenue however was down to GBP22.3 million from GBP28.5 million.
During the period, the company embarked on a cost management programme which saw a headcount reduction of over 400 employees. Finance costs went down marginally to GBP598,000 from GBP647,000.
Gross margin increased to 31% from 25%.
Looking ahead, Pittards said it expects the Covid-19 pandemic to affect its business but said it has "substantial" inventories that can be used to support customers who may need more flexible supplies during the period.
"We entered 2020 as a more diverse business, with improved margins and increased flexible manufacturing facilities, which is set to take full advantage of its markets. However, the outlook for the current year is uncertain due to the impact of coronavirus and has started with reduced demand whilst we the board are actively monitoring the situation on a frequent and regular basis, and have contingencies in place to address the evolving situation," said Char Stephen Yapp.
At the end of the period, headroom on lending facilities stood at GBP2.6 million.
Pittards shares were untraded at midday Tuesday in London, last quoted at 47.00 pence each.
By Ife Taiwo; ifetaiwo@alliancenews.com
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