Pittards revenues down 50% in the first six months as loss to reach £3.5 million

Pittards revenues down 50% in the first six months as loss to reach £3.5 million

Pittards business trend turns out to be negative at the end of the first six months of the year: in fact, revenues down 50% will inevitably cause financial statements to be at a loss.

Yet, from May until August results have been going better: that is why the tanning and leather goods British group expect that they will achieve, in the second half year period, a better performance, compared to the previous term. The good news comes from Ethiopia: here Pittards Ethiopia Tannery has been honoured by local government as a virtuously running company.

Revenues down 50%

Like we said above, in the first six months of 2020 Pittards revenues reached 6.6 million pounds, therefore dropping by over 45% on annual basis.

As for financial statements, loss amounted to 2.3 million pounds, before tax, compared to a 200,000-pound profit, before tax, in the same period of 2019. “Over 90% of our sales rely on exports – commented Chief Executive Officer Reg Hankey –, and this exposes us to global demand, logistics and supply chain effects”.

President Stephen Yapp expressed a few optimistic and confident words: “We are about to face the second half of the year by enjoying positive cash flows: the trend is picking up. In the first six-month-period, over 14% of sales, compared to 1.5% in the first six months of 2019, were coming from our new end markets.

Overall sales have been consistently increasing from May to August. We may rely on a sound standing to supply a positive operating cash flow in the second half of the year, along with a reduction in our financial net indebtedness”. Sales have been picking up again in the footwear, automotive and special commodities sectors: we could benefit from margins of profit again both in July and August.

The award

Pittards Ethiopia Tannery was honoured by Ethiopia’s Minister of Revenues, who gave the tannery an award to certify their loyalty and accuracy alongside best practice and transparency while carrying out work activities. The International Leather Maker reported the news.

On top of that, Pittards UK delivered a £595 cheque in favour of the hospital of Yeovil: such are the profits resulting from the sale of some heart-shaped leather souvenirs, manufactured by the company’s leather goods division during the lockdown period.

Pictures taken from pittards.com

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