Pittards Share Discussion Threads

[baner] 28/7/2023 08:18

Meijiman

A very good summary! In particular their FD´s have been completely useless, while the CEO is not very ”commercial221;. However the product quality in Yeovil is nothing but fantastic and it is really sad that all this know how now risk falling apart. Lloyds Bank will most likely face a substantial loss - not only of money but also of reputation here.

[clocktower] 27/7/2023 18:40

Mr Rendell with over 26% and a very longstanding major shareholder will be taking the biggest hit I guess. Over 3 million shares that I guess he might have paid between 60p and £1 for on average must be painful.

A pre-pack maybe but with the Ethiopia factory etc it could be a problem but as a split maybe - I guess they have already looked at that when they had a re-valuation done.

In effect the bank are calling the shots anyway.

The CEO will come off best because of his pension I guess and his age.

[triskelion] 27/7/2023 18:20

From today's RNS.

"... Unfortunately, all the other conditions of the Fundraising have not been satisfied and the Board has therefore taken the decision to terminate the Fundraising. ...

With the support of its bankers who have extended existing facilities to 31 August 2023, the Company will continue to consider all its strategic options for the benefit of its stakeholders which may include an orderly sale of the business and assets of the Company.
[would that perchance be in an administration? Roll call of the usual suspects lining up to buy]

Trading in the Company's shares is currently suspended, pending publication of the final results for the year ended 31 December 2022 which in light of recent events will be further delayed. ..."

Ruffer still showing with a tad over 11%. They are pretty smart players but maybe this time they're lined up for a loss. But it's not over till it's over etc etc.

[clocktower] 27/7/2023 16:42

I was waiting to see if there were any comments.

It is not surprising they were unable to raise funds with the level of debt but it seems Lloyds Bank are doing everything possible to avoid putting in the hands of a liquidator, little wonder as they will strip it bear for themselves and it seems to me Lloyds must reckon they will get more back by trying to get a sale of parts to reduce the debt before calling it a day.

I would expect Pittards have already cut staff and are ticking along clearing what jobs they have in hand and any stock they could, while this was all up in the air.

Very sorry for all the shop floor staff and their trade customers that will need to look for new suppliers.

[clocktower] 27/7/2023 12:38

GM today so how long before we get news?

[baner] 20/7/2023 16:29

Clocktower - spot on, total agreement. The bank is likely to try to give investors false hope in order to extract some further money from shareholders - while their only interest is to get out asap with as little pain as possible.

[clocktower] 20/7/2023 13:56

While it is still up in the air follow todays RNS, it does seem they are putting a few acrow props in place to stop the bank closing in at this point in time but it really is only like putting a sticking plaster on to stop the blood while the bank works out a way to get more of their money back, as any company that is as deep in debt as this, at a time of increasing interest rates, has as much chance of survival in the long term as Putin has of over-running Ukraine.

Whomever the trade investor is, they must have big orders to fill and in desperate need of finished leather.

[baner] 20/7/2023 09:51

It is highly probable that the lenders will face substantial losses on their loans to Pittards - it would of course have been much better - and more responsible - for the bank to offer Pittards a hair cut subject to a substantial Equity injection. We are now facing the close down of a high quality supplier and substantial employer - terrible incompetence.

[triskelion] 20/7/2023 02:23

ye olde news


RNS Number : 6900F
Pittards PLC
11 July 2023


"...Should The Company Be Unable To Raise A Minimum Of £1.16 Million Of Additional Capital, The Company Will Be Unable To Continue To Trade And Would Most Likely Be Placed Into Administration In Which Case The Prospects For Recovery Of Value, If Any, By Shareholders Would Be Uncertain. In Addition, It Should Be Noted That The New Banking Facilities And The Fundraising Are Inter-Conditional.....

[clocktower] 18/7/2023 15:33

Time is running out for them Smithie6 as there no news if they cannot raise the £1.5 million to keep the wolf from the door for a while from an open offer but note they still want shares for giving up salary having failed shareholders. So they give up nothing if it succeeds.

[smithie6] 10/7/2023 17:15

clearly the bod were naughty boys by always reporting a NAV per share which imo they knew was a complete load of rollocks !!

(supported by a multimillion pound asset of stocks in skins...

which I think not 1 poster on advfn in the last few years has believed as truthful !!

& if it had been truthful then the company could have sold a chunk of those stocks to bring in a chunk of cash to enable the co. to survive a bit longer.

(in any case, a tough sector, employing a lot of people & producing effectively no profit)

[smithie6] 10/7/2023 17:02

..from last annual accounts

the CEO effectively says 'everything is going great'

je je !!

perhaps in hindsight showing that he didn't really have a clue how the company was really doing !!

------

"On current trading and outlook, Reg Hankey, CEO, added:

"We have started the current year with a better Order Book than for each of the last three years and we believe that this higher level of demand is sustainable. In addition to our traditional markets, which have recovered well, we are now also well placed to respond to our new strategic market sectors of interiors (automotive, aviation and mass transit), large shoe brands and shoe production in Ethiopia which are set for faster growth than 2021.

"With a more efficient cost base we will also be able to respond more positively to recovering demand in the global marketplace and the new capital projects implemented during 2021 will allow us to grow capacity in a more efficient way during 2022. We remain committed to a more balanced, agile business with a broader range of customers, and we continue to believe that opportunities outweigh risks to build on our 2021 performance in the current year and beyond"

[clocktower] 05/7/2023 12:47

Interesting Somertrade.

I cannot see to many options, finished leather I am sure is not sold in 40ft container loads. My guess is that the bulk of goods they made for third parties is make in Ethiopia, as they have a huge low cost workforce. All the videos in the past showed them making gloves and shoes for vivobarefoot plus clothes, for whom I have no idea.

I would think the UK supplies businesses in the USA with finished leather to ensure quality etc to be used on well know brands of golf shoes and other top quality sport equipment.

Saddle leather would be UK hides as well as would most leather for things like leather bags, as they would not be using goat or sheep skins for that in the main.

Even though a director of Mulberry sits on the board, I do not think the company supplies them now, having looked at Mulberry's website - I maybe wrong mind you.

I have to admit that I do not know much about the size of larger businesses orders and how they would be shipped - I assume they would be packed flat on large pallets with boxed in sides and ends, and sold by the pallet load at most.

Also bar black leather for shoes as used by Doc Martin's we don't know if other UK shoes makers use Pittards.

I guess most leather buyers want all sorts of colours and shades,plus printed designs, as can be seen on Pittards website. All in all, I think you would need to have a UK tannery if you want a quality business.

It's not only the roof that has been leaking, it is also shareholder funds that have drained away.

It is very sad to see old British companies deep in debt and dying a slow death.

[somertrade] 04/7/2023 14:48

Clocktower
I don't think the site has space for employees vehicles around the back, unless waste ground was developed into a car park = cost. Also the issue of access for lots of cars using a small road.
CEO has been there for years, as Tech Director pre 2000, then MD, then CEO. Previous MD, early 2000s I think, made good profits and set aside money (£m) for replacing the roof (it leaks badly). All money now long gone.
Admittedly old pension schemes caused a big issue (FRS17 changes) and CVA but that was ~18 years ago.
Selling the Ethiopian factories would surely mean no more gloving business. It's mainly based on Ethiopian hair sheep, so this material for Yeovil factory would disappear.
Not sure what leathers they make in Yeovil any more. Therefore would there be a business left?
Alternative, move everything to Ethiopia? Loss of many skills...
All very sad.

[smithie6] 03/7/2023 22:05

But even if that happened

...the impression I have is that the money would then be consumed

Since the co. does not appear able to make money, at least in its current format with its dirs running it for the kast X years. But it is a tough sector & making anything in the UK is tough, with the wage levels & numerous high costs.

[smithie6] 03/7/2023 22:02

Could they get a chunk of cash by selling the 2 sites in Ethiopia ?

A fair size I think. & at least one has a fair number of solar panels I think.

[clocktower] 03/7/2023 11:41

Thanks Dorset64 - very interesting as in that case the Bank can have very little security, and are just trying to get hold of the £1.5 million to reduce the debt while having agreed a two year deal on the £7 million plus to give the company a chance to raise again I expect but in view of what you say about the site it might be fruitless.

[dorset64] 03/7/2023 08:48

Clock tower - 769 of 774

The site is huge but pretty much worthless. You will never be able to sell it for housing as the factory is built upon an old refuse dump.

They currently do let out part of their car park as parking for the Volvo (or whatever it is) opposite to them. As far as I have noticed they have not been laying anyone off from the site but again, not openly advertising to replace any leavers.

A few friends still work there and they are not told too much more than what you can see on official releases as far as I can see.

[clocktower] 03/7/2023 08:26

bookbroker - when I read what you wrote, I thought Google Map must be out of date, as I remembered a few year back there was a big fuss in the press about McD on that site.

I agree it will be a great shame if they are unable to continue but when managements of companies start taking on big loans to feather their pockets and those of shareholders by way of dividends, which in truth cannot be afforded - like the water companies - the rot starts to set in.

As regards the dollar hedge, I think that was the last nail in the coffin, as they had to realise the the loss, which they should have done with the stock years ago.

What is the good of having £10/11 millions worth of stock when you cannot sell it even when under pressure.

We have seen major fashion retailers having to write of multi millions of pounds worth of stock because once dead it becomes worthless and may even cost more to take it to landfill than you can realise from the goods.

Question now is can they raise the money needed, and can it come back from suspension or is it curtains.

Terrible for all the staff - hopefully someone will step in.

[smithie6] 30/6/2023 20:22

so...was it a loss on a dollar hedge position that caused a lot of this collapse ?

[bookbroker] 30/6/2023 17:04

I correct myself Clocktower, you are correct about the fast food outlet, never bloody payed any attention to it, was at the factory shop two weeks back, never noticed it.

[clocktower] 30/6/2023 16:31

Well that's it - Suspended - two buyers today that took a chance, unless they were closing a small short/

Good Luck anyone left holding now.

[clocktower] 30/6/2023 11:24

Just took a look at the site on Google Maps:



I see there is a McDonalds opposite, so they must get a fair bit of traffic/passing potential business.

They have a huge car park - that I doubt has been used at weekends, that they could have rented out part of it for things like craft fairs,and lots of other things that could have brought customers to their own shop. All these little things like that would have added up if they had done so over the passed years. It just gives the place a buzz of excitement rather than a dull bland block.

Staff parking could have been moved to the rear of the site.

So the site must be worth a fair amount as it is huge.