Pittards, a renowned leather supplier, manufacturer, and expert in branded accessories, has recently taken strategic steps to enhance its financial stability amidst a substantial drop in sales. Despite facing a challenging business environment, the company has successfully bolstered its liquidity through various initiatives.
One significant move by Pittards was securing a £1 million government-backed loan facilitated by Lloyds Bank, with repayments scheduled over the next six years. Additionally, the company finalized a remortgage deal for its Yeovil site, effectively extending its existing funding by £1.75 million for five years. These actions have collectively increased Pittards’ total facilities to £13.7 million, with a remaining unused amount of approximately £2.5 million.
The Covid-19 pandemic significantly impacted Pittards’ sales during the first half of the year, leading to a sharp 45% decline compared to the previous year. As a result, the company is anticipated to face a sizeable loss in this period. Despite these challenges, Pittards proactively implemented rigorous cost-saving measures to mitigate the impact on cash flow. Additionally, the company utilized the government’s furlough scheme and successfully negotiated salary sacrifice arrangements with higher-paid staff.
Encouragingly, Pittards has started to witness signs of recovery in its recent trading performance. Positive cash flow was achieved in June and has continued into July. Increased activity in key markets indicates that the company’s strategy to diversify its customer base is yielding positive results. However, Pittards remains cautious about the future and expects a gradual recovery in the upcoming months. With its current resources, the company believes it is well-equipped to navigate through the ongoing crisis at reduced sales levels.
Overall, Pittards remains committed to its resilience and adaptability in the face of challenges brought on by the pandemic. The company’s proactive measures and strategic initiatives position it well for sustained success in the future.
For more information on Pittards and its recent financial strategies, visit their official website here. To stay updated on the latest developments in the leather industry, check out industry news at Leather International here.
