The impact of the global pandemic has been felt deeply by UK-based leather goods manufacturer Pittards, with a staggering 45% decline in revenue to £6.6 million during the first half of the year. The company, known for its iconic English leather goods brand Daines & Hathaway, reported a significant Ebitda loss of £1.3 million compared to a profit of £1.2 million in the same period last year.
Attributing the disappointing performance to the widespread disruptions caused by Covid-19, CEO Reg Hankey highlighted the challenges faced due to the company’s heavy reliance on exports, with 90% of its sales catering to international markets. This vulnerability has left Pittards exposed to fluctuations in global demand, logistics, and supply chains, especially with operations in South Asia that experienced coronavirus-related issues before those in the UK.
The pre-tax loss for the six months ending on June 30 amounted to £2.3 million, a sharp contrast to the pre-tax profit of £0.2 million recorded in the previous year. Despite these setbacks, chairman Stephen Yapp has expressed confidence in Pittards’ ability to navigate through these turbulent times.
Following the ease of lockdown measures, the company has seen a gradual increase in sales across its shoe, automotive, and speciality consumer goods divisions. Both July and August showed positive cash flow and Ebitda figures. Yapp mentioned that despite the challenges faced in the first half of the year, Pittards is entering the second half with a sense of optimism and stability, with improving cash flows. The company’s strategic initiatives to diversify its market portfolio, product offerings, enhance margin quality, and reduce costs are starting to yield positive results.
In the first half of the year, sales from new target markets saw a significant boost to 14%, a notable increase from the 1.5% recorded in the same period last year. Overall, sales have been on an upward trajectory from May to August. Pittards is poised to achieve positive operational cash flow in the second half and reduce net debt compared to the initial months of the year.
Founded in 1826, Pittards not only boasts a rich heritage but also offers a premium range of leather goods under the Daines & Hathaway label, along with the Pittards England collection comprising bags, gloves, and garments. Despite the current challenges, the company remains upbeat about its future prospects and is actively working towards overcoming the uncertainties brought on by the global pandemic.
For more information about Pittards and their product range, visit their official website here.
To stay updated on Pittards’ latest news and developments, follow them on their social media platforms: Twitter @pittards_ltd and Instagram @pittards_1826.
