Stock write-down sees Pittards swing to loss

Specialist producer of technically advanced leather and luxury leather goods Pittards announced its results for the year to 31 December on Tuesday, with revenue falling to £27.0m from £30.5m in the prior year.

The AIM-traded company said underlying profit before tax was £0.2m, and it made a final loss before tax of £4.1m, swinging from profit before tax of £0.7m in 2015.

It put the loss down to an “exceptional” stock write-down of £4.3m.

Net assets stood at £21.3m, compared to £24.3m a year earlier, with net assets per share reported at 153.38p compared to 204.45p.

Pittards said a new management team was in place from the final quarter of 2016, and it had completed its operational restructure to become two reporting divisions - UK and Ethiopia.

“We are putting in place the necessary pillars that will strengthen Pittards' position as a leading performance-leather expert, supported by scalable manufacturing operations and a highly capable management team,” commented chairman Stephen Yapp.

“The restructuring and strengthening of the management team was completed in the final quarter of 2016 and strides have already been made to evolve and progress the strategic priorities and milestones for the next three years.”

Yapp said further updates on that would be given later in the current year.

“Whilst it is still early days, we are beginning to experience a more positive demand environment for leather.

“Together with the actions being identified and taken, the board believes we will start to see a benefit in the latter part of 2017 and that the prospects for the future are promising.”