Pittards Share Discussion Threads

[clocktower] 23/3/2015 09:03

Nothing exciting in these results.

[meijiman] 20/3/2015 11:51

Looks like Monday. Oh the excitement. On balance should be more good news than bad and given the lowly rating the share price should go higher.

[meijiman] 20/3/2015 09:42

The figures must be soon.Let me check the company site to see if there is confirmation.

[momosu] 04/3/2015 14:42

Looking good here - strong bounce off support at 130p, with high volume (by Pittards standards), and a bullish Golden Cross with the 50-day MA crossing over the 200-day MA. Great value share too.

[oregano] 17/2/2015 10:25

Sure. but net assets are worth £2. any profit that is generated boosts those NTAs. This and next year are profitable years, ie rising NTAs. Most businesses generating profits trade at a premium to book value. don't under estimate the damage that bloke selling 20% of the shares did to the share price last year.

[bookbroker] 17/2/2015 09:19

This is a dollar business, dominated by currency swings rather than levels of trade!

[envirovision] 17/2/2015 09:14

Really?

Look at the terms, results broadly in line, in other words there will be the odd issue to expect ! So that is not great is it.

Then looking forward confidence is reasonable!

If you are confident then you are confident. If you are reasonably confident then there is still some doubt, no!

If that the most positive statement you have ever heard from them, then what else is there to add.

[oregano] 17/2/2015 09:02

So interpreting "broadly in line with expectations" means £1.5m, not the forecast £1.6m, that still means £0.9m in H2. This is not a seasonal business, ie that is the new run rate with the recent cost savings. so i wonder if we might actually see upgrades for 2015, what with the Etheopian expansion, move to higher margin products etc. I am sure the IC will trumpet this.

[oregano] 17/2/2015 08:23

i am surprised the shares are indicated down on that statement. probably the most positive trading statement i have heard from PTD!

[envirovision] 17/2/2015 08:22

Broadly in line hmmmmm. So there will be the odd spanner thrown in then.

[meijiman] 16/2/2015 10:19

Stock has always looked high here. The stocking may reflect things which are not apparent to an outsider such as mitigating issues connected with hide production in Ethiopia, and maybe keeping customers happy so offtake requirements can be fulfilled. Guess upward stock valuation would be an accounting issue -non-cash.On the other hand reducing stock levels by selling down would definitely be a boost to cash.

[oregano] 16/2/2015 09:46

PS - i spoke with the FD on this issue last year. she said they could grow the business from here without increasing stock levels. so hopefully we should see improved cashflow.

[oregano] 16/2/2015 09:45

the risk being you make some garbage designs that no-one buys. but things like gloves are fairly low risk.

[meijiman] 16/2/2015 09:35

Yes the more value added which is retained within the business the more margin which accrues. There is a world of difference between being a leather goods 'producer' selling bits of leather to leather goods retailers; compared to accessing a market which for eg might be based on selling ladies handbags at £1000 a go.

[oregano] 16/2/2015 09:24

spob, as per the Radiator articles, they are producing more finished product themselves, which means stock has a higher value.

[meijiman] 16/2/2015 09:15

Things are warming up then! Would say Radiator are not a conventional PR spinner but more a brand awareness outfit. Still there is a better feel to things this year I think.Hopefully the share price can head towards 200p and not collapse again as in previous years.The key is the outlook statement.

[mark2market] 16/2/2015 08:40

Results next month - Pittards' PR company Radiator touting a "sales uplift" in the second half of 2014, even featuring Pittards as their December "Case Study", pleased the brand is taking off.
See

[spob] 13/2/2015 17:13

ok, but sales to inventory ratio is the lowest in 10 years


Pittards never used to hold so much stock. It may not be of any great significance. I was just wondering why ?

[oregano] 13/2/2015 16:58

it takes time to process the leather. and time to ship it.

[spob] 13/2/2015 16:46

Why does this company hold so much stock ?

Inventory £15m

[mark2market] 13/2/2015 09:26

Coverage from International Leather Maker:

Pittards looking at threefold expansion
Published: 06 February, 2015
Pittards PLC, the UK based tanner and leather products company investing in Ethiopia, has disclosed that it hopes to increase its production capacity in glove making in Ethiopia by threefold in the coming two years.

Full story available to subscribers:

[mark2market] 12/2/2015 11:22

The threefold expansion now being picked up more widely, with extra detail:

Pittards Increases Productivity by Threefold
10 Feb 2015 Asefa Mideksa Economy

Addis Ababa February 10/2015 The British-owned Pittards Products Manufacturing S.C said it has increased its productivity by threefold.
Pittards Products Manufacturing General Manager,Tsedenia Mekbib, told ENA that the company increased its productivity three years ago.
The company, which entered the Ethiopian market by purchasing the government-owned Ethiopian Leather Company, has been exporting 100,000 pairs of gloves in a month during the past Ethiopian fiscal year, she said. Pittards has secured 4 million USD from the export.
The factory has plans to increase its income and manpower, Tsedenia said, adding that it is currently working to secure 12 million USD.
The factory produces gloves, leather garments, jackets and bags.
The factory which had 80 employees three years ago has now 700 workers, the general manager stated.
Ethiopian Leather Industry Development Institute Corporate Communication Director, Birhanu Serjebo said his institute has formulated a system that can help to increase the planned revenue for the Growth and Transformation Plan period.
Some 64.18 million USD was secured during the past six months, he added.

- See more at:

[oregano] 06/2/2015 16:49

The plus side of the IC re-iterating their positive take on PTD is that ST has hopefully been in contact with the company, and has some visibility on the '14 numbers. It would be v embarrassing if they warned so soon after this recommendation. Hardly unknown though! ST's previous work was quite detailed, focussing on the asset replacement costs at around £2 from memory.

A good find on the Ethopian expansion, well played on that one. A low cost production centre and taking more margin in house, as opposed to just sourcing skins over there, which is what they used to do.

[oregano] 06/2/2015 15:45

Eurovision - the strong $ is good for these guys. they price in $. £ weakened almost exactly at the completion of their H1.

[paulypilot] 06/2/2015 15:21

Indeed, good to see that patience is starting to pay off here, or at least the negative trend now seems to have bottomed out, and a positive trend emerging.

Potentially interesting company, if anything comes of the expertise brought in from the ex-Mulberry Director - that was my main reason for buying in a while ago.

PP.