Dealing with a decreasing demand and a rather uncertain outlook. Things are like that for Pittards too, as 2020 looks quite problematic. The British tanning and leather goods group made public data and figures about 2019, along with their outlook for this year. “The new year has begun with a downturn in demand”, commented President Stephen Yapp.
Pittards face a very uncertain 2020
“The board of directors have been considering the payment of shares of profits. Besides that, they might possibly start up a buyback plan – continued the manager –. We are going to reconsider everything once global instability, currently linked to Coronavirus outbreak, is over. In the meantime, they are thinking about the company’s operating future. One of the primary aims, set for this year, is “to optimize the use of manufacturing plants in Ethiopia, therefore diversifying our activity”, pointed out the British company in a press release. On top of that, they are striving to “adjust production to match demand by focusing on new channels” and “expand the business in new markets by gaining market shares across specific channels”.
A “good” 2019
Yapp said Pittards enjoyed a good 2019, which proved to be “a rewarding year, both from a strategic and an operating point of view”. As regards positive aspects, the group managed to reinforce their role in Ethiopia’s footwear market; in addition, they joined the air transport and automotive sector. Financial results, “though affected by worldwide instability, turned out to be sound and in line with our expectations”. At the end of the year, the British group’s revenues amounted to 22.3 million pounds (that is, about 25.3 million euros): they went down compared to the year before (28.5 million pounds). Conversely, gross margins rose from 25.1% up to 30.9% and profits before tax increased from 0.4 (that is, around 454,000 euros) up to 0.6 million pounds (that is, about 680,000 euros).
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