Pittards, the leather producer and supplier, is confident about its prospects for a stronger year in 2021 following a resilient performance in 2020. According to the company’s chairman, Stephen Yapp, Pittards has emerged from last year with a more versatile and adaptable business, positioning it for success in the coming months.
Despite the difficulties posed by the pandemic, Pittards managed to achieve partially-positive results for the year ended December 31, 2020. The company reported a break-even second half and a return to positive core earnings during the same period. This improvement was largely attributed to inventory reduction and operational optimization, which significantly enhanced cash flow.
Nevertheless, the financial report also highlighted the impact of the global downturn on Pittards’ sales. Weak global demand for leather and related products led to a decline in full-year revenue, dropping from £22.3 million in 2019 to £15.2 million in 2020. The first half of the year proved particularly challenging, but the second half showed signs of recovery, with revenues amounting to £8.6 million.
Gross profit for the year decreased to £3.2 million from £6.9 million in the previous year, and the gross margin slipped from 31% to 21%. Additionally, the company recorded a pre-tax loss of £3.2 million, compared to a gain of £0.6 million in the previous year, and an EBITDA loss of £1.1 million.
Despite these setbacks, Pittards emphasized several positive elements in its report. The order book for 2021 is stronger than in previous years, and underlying margins improved compared to 2019. The company has also made progress in developing relationships in the interiors market and establishing itself as a shoe manufacturer in Ethiopia. These markets are a priority for Pittards, accounting for 22% of total sales in 2020, up from 18% in 2019.
Looking ahead, Yapp expressed confidence in Pittards’ ability to capitalize on opportunities in its markets. The company has restructured its business to be more agile and ready for growth, with a strong focus on creating long-term value. Although the extent of the recovery remains uncertain, Pittards is optimistic about building on the momentum gained in the second half of 2020 and capitalizing on stronger customer demand.
In conclusion, Pittards’ performance in 2020 demonstrated resilience in the face of challenging market conditions. With a more diverse and flexible business model, the company is well-positioned for a stronger 2021. As it continues to navigate the uncertainties brought about by the pandemic, Pittards remains optimistic about the opportunities that lie ahead.
Useful Links:
1. Pittards Official Website
2. Pittards: A Look at its Business While Marking its 100th Anniversary
