LONDON (Alliance News) - Leather goods producer Pittards PLC on Monday reported a fall in profit in 2015 as it booked various exceptional charges and revenue was hit by reduced demand.
Pittards said its pretax profit in 2015 more than halved to GBP0.7 million from GBP1.6 million in 2014, as revenue fell by 12% to GBP30.5 million from GBP34.7 million.
Pittards said revenue was hurt by a lack of demand for dress glove leathers due to mild winter weather in the period leading up to Christmas. In addition, military and sports leather demand was subdued, offsetting a small improvement in turnover in the UK consumer division.
Pittards also booked exceptional charges relating to the restructuring of the UK consumer division at its site in Yeovil and the closure of the site in Walsall, the restructuring of the main board, and some residual expenses relating to the purchase of the Ethiopian leather division in 2009.
"The board's aim continues to be to deliver shareholder value. It is expected that the short-term performance will reflect the reduced demand for leather. However, the company now has the financial resources to invest in delivering its strategic priorities and the board remains confident that the steps the company is taking will enable it to better address challenges and grasp future growth opportunities," Chairman Stephen Boyd said in a statement.
Shares in Pittards were trading down 10% at 69.00 pence on Monday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.