Pittards earnings improve as it delays dividend decision

(Sharecast News) - Leather and luxury good manufacturer Pittards reported revenue of ?22.3m in its final results on Tuesday, down from ?28.5m year-on-year.
The AIM-traded firm said its gross margin increased to 30.9% for the year ended 31 December, from 25.1%, while its profit before tax improved to ?0.6 m from ?0.4m.

Its EBITDA was up to ?2m, from ?1.8m in 2018, while its net assets slipped slightly to ?17.5m from a restated ?17.8m in the prior year.

Pittards said it saw repeat orders from both interiors and big shoe markets during the year, and established Ethiopia further as a shoe manufacturer.

"We have come a long way this year; achieving expectations despite weaker global demand and, in entering the strategically important interiors and large shoe markets, changing the shape of our business," said chairman Stephen Yapp.

"We are committed to optimising and growing our business with all our customers and accordingly continually strive to create innovative and high-quality products across all the markets we operate in.

"Aligned with our strategic priorities, we are delivering predominantly hide-related new products to a wider range of customers, creating a more balanced portfolio."

Yapp said the company entered 2020 as a more diverse business, with improved margins and increased flexible manufacturing facilities, which were set to take full advantage of its markets.

"However, the outlook for the current year is uncertain due to the impact of [the Covid-19] coronavirus [pandemic], 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.

"Looking forward, the board has actively been considering the payment of dividends and commencement of a share buyback program.

"This will be revisited once the current global uncertainties connected to coronavirus are resolved sufficiently."