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PTD Pittards Plc

5.375
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Pittards Plc LSE:PTD London Ordinary Share GB00BM8NGB73 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 5.375 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Pittards PLC Final Results (9957I)

27/03/2018 7:00am

UK Regulatory


Pittards (LSE:PTD)
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TIDMPTD

RNS Number : 9957I

Pittards PLC

27 March 2018

27 March 2018

PITTARDS PLC

("Pittards" or "the Group")

Full Year Results for the year ended 31 December 2017

Pittards plc, the specialist producer of technically advanced leather and luxury goods for retailers, manufacturers and distributors today announces its results for the year ended 31 December 2017.

Year ended 31 December 2017:

-- Revenue GBP30.3m (2016: GBP27.0m)

-- Profit before tax GBP0.4m (2016: underlying profit before tax GBP0.2m, loss before tax of GBP4.1m after exceptional stock write down of GBP4.3m)

-- Gearing improved to 40% (2016: 48%), reduction in net debt and increased bank facilities

-- Review of strategy completed

-- Pipeline of new business has reached the bulk sampling stage.

Stephen Yapp, Chairman commented: "Fundamental changes were made in 2017 including improving the operational and financial performance of the business whilst establishing the clear strategic priorities for the medium term and investing accordingly.

The Group has entered 2018 with a new divisional structure in place, enhanced financial disciplines, reduced net debt and the resources to support our growth ambitions. We are well placed to leverage promising opportunities from existing and new customers that will accelerate our performance and increase shareholder value."

For further information, please contact:

 
 Pittards plc                  www.pittards.com 
 Stephen Yapp, Chairman 
 
  Reg Hankey, CEO 
 
  Matthew O'Rourke, CFO    +44 (0) 1935 474 321 
 
 WH Ireland Limited         www.whirelandcb.com 
 Mike Coe, Ed Allsopp      +44 (0) 117 945 3470 
 

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those regulations.

CHAIRMAN'S STATEMENT

for the year ended 31 December 2017

The Group's financial performance improved in 2017 with an increase in underlying profit before tax, a reduction in the net debt position and a heightened focus on reducing stock levels that is starting to gain traction. In parallel to this, we completed the reshaping of our operations into the two divisions "UK" and "Ethiopia" with respective reporting and management structures and clarified our strategic priorities for the medium term.

Our optimism for the future is supported by a pipeline of new business that has reached the bulk sampling stage with new customers within both our existing and target markets.

Highlights - Year ended 31 December 2017:

   --      Revenue GBP30.3m (2016: GBP27.0m) 

-- Profit before tax GBP0.4m (2016: underlying profit before tax GBP0.2m, loss before tax of GBP4.1m after exceptional stock write down of GBP4.3m)

   --      Gearing improved to 40% (2016: 48%), reduction in net debt and increased bank facilities 
   --      Review of strategy completed 
   --      Pipeline of new business has reached the bulk sampling stage. 

Strategic update

We have identified which markets present the best opportunities for a balanced, market-led, client and product focused portfolio, that will capitalise upon our production capabilities and expertise, and will drive growth.

The foundations of our business remain the footwear and performance glove markets. The global glove market, worth circa $250m (source: 9Dimen/Industry), is seeing a shift towards casual and active leather gloves which presents us with further opportunities. The strength of our existing customer relationships and expertise give us a competitive advantage.

We are also targeting new customers within our existing markets. Footwear presents the biggest growth opportunity; lifestyle trends are driving the growth of the Athleisure and Outdoor categories in a combined market segment worth around $60 billion (source: SGI 2015 Wholesale). Our established UK footwear leather manufacturing capability and expertise is well placed to meet the needs of leading brands in this sector who are prioritising differentiation and innovation. In addition, global companies are increasingly looking to Ethiopia as a manufacturing location creating a further opportunity for Pittards Ethiopia.

In order to build a balanced portfolio we are also working to develop new customers in new markets. The interiors sector, which has a global market value of around $39 billion (source: Transparency Market Research 2016) is a target market for Pittards. Interiors has increased its share of total leather usage from 7% in 1990 to 27% in 2015 (source: UKLF). Pittards is well placed with its performance leathers to meet the needs of this market place.

Financial review

The Group's financial performance improved year-on-year as we implemented better disciplines, policies and procedures across the business while investing to support our growth plans.

Revenue increased 12% to GBP30.3m with increased volumes in our existing markets in both the UK and Ethiopia. Profit before tax for the year improved to GBP0.4m as a result of higher turnover and operational efficiencies. Alongside this we have strengthened our senior management team and invested in modernising our drying process.

The net assets reduction to GBP19.8m largely reflects movements in foreign exchange, notably the Ethiopian Birr devaluation, which the Board consider will improve the competitiveness of our Ethiopian business.

Stock reduction remains a key priority. Stock levels reduced in the year to GBP15.3m (2016: GBP17.4m) primarily due to movements in foreign exchange. In addition, the initiatives and incentives now in place are beginning to reduce slow moving stock across the Group and we anticipate making further progress in 2018.

One of our key financial measures is the Return on Capital Employed. This has increased in 2017 to 4.1% and our near term objective is to deliver returns above our estimated Weighted Average Cost of Capital of approximately 7%.

We have adequate funding to support our growth objectives; total net debt decreased to GBP8.0m (2016: GBP10.1m) and we have negotiated both an increase and improvement in our facilities from GBP12.2m to GBP13.7m.

Dividends

The Board has decided not to pay a dividend with respect to the year ended 31 December 2017; however, it is the Board's intention to return to the dividend paying list as soon as it deems it appropriate.

Board changes

As previously announced, Jill Williams stood down as non-executive director on 31 December 2017. Jill had been a director of the company for 10 years and the Board would like to thank Jill for her contribution to the Group. There were no further changes to the Board during the year which is positioned to support the management team and drive the strategy to take Pittards into its next stage of growth.

Team

I would like to thank all of our employees for their continued hard work and understanding throughout this period of notable change. They have contributed significantly to making 2017 a year of great progress.

Outlook

The Group has entered 2018 with a new divisional structure in place, enhanced financial disciplines, reduced net debt and the resources to support our growth ambitions. We are well placed to leverage promising opportunities from existing and new customers that will accelerate our performance and increase shareholder value.

CONSOLIDATED INCOME STATEMENT

for the YEARED 31 DECEMBER 2017

 
                                                                  2017       2016 
 Continuing Operations                                 Note    GBP'000    GBP'000 
 
 Revenue                                                        30,287     27,009 
 Cost of sales                                                (23,194)   (20,554) 
 Cost of sales - exceptional stock provision            2            -    (4,307) 
                                                             ---------  --------- 
 Gross Profit                                                    7,093      2,148 
 Distribution costs                                            (2,443)    (2,167) 
 Administrative expenses                                       (3,716)    (3,572) 
                                                             ---------  --------- 
 Profit/(loss) from operations before finance costs                934    (3,591) 
 Finance costs                                                   (521)      (499) 
 Finance income                                                      -         19 
                                                             ---------  --------- 
 Profit/(loss) before taxation                                     413    (4,071) 
 Taxation                                                           84       (75) 
                                                             ---------  --------- 
 Profit/(loss) for the year after taxation                         497    (4,146) 
                                                             ---------  --------- 
 
 Earnings/(loss) per share 
                                                             ---------  --------- 
 Basic                                                  3        3.58p   (29.89p) 
 Diluted                                                3        3.49p   (28.91p) 
                                                             ---------  --------- 
 
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 31 DECEMBER 2017

 
                                                                           2017      2016 
                                                                        GBP'000   GBP'000 
 
 Profit/(loss) for the year after taxation                                  497   (4,146) 
 
 Other comprehensive income 
  Items that will not be reclassified to profit or loss 
 Revaluation of land and buildings                                          171       135 
 Revaluation of land and buildings - unrealised exchange (loss)/gain      (625)       279 
                                                                       --------  -------- 
                                                                          (454)       414 
 
 Items that may be subsequently reclassified to profit or 
  loss 
 Unrealised exchange (loss)/gain on translation of overseas 
  subsidiaries                                                          (1,655)       827 
 
 
 Other comprehensive (loss)/income                                      (2,109)     1,241 
                                                                       --------  -------- 
 Total comprehensive loss for the year                                  (1,612)   (2,905) 
 
 

CONSOLIDATED statement of Changes in equity

for the year ended 31 DECEMBER 2017

 
 
 
 
                                                                                                                            Total 
                                                      Shares      Share                                                    equity 
                                                        held      based                                              attributable 
                       Share      Share    Capital        by    payment    Translation    Revaluation    Retained       to owners    Non-controlling     Total 
                     Capital    premium    reserve      ESOP    reserve        reserve        reserve    earnings       of parent           interest    equity 
                     GBP'000    GBP'000    GBP'000   GBP'000    GBP'000        GBP'000        GBP'000     GBP'000         GBP'000            GBP'000   GBP'000 
                   ---------  ---------  ---------  --------  ---------  -------------  -------------  ----------  --------------  -----------------  -------- 
 At 1 January 
  2016                 6,944      2,984      6,475     (495)          -        (2,692)          1,853       9,081          24,150                179    24,329 
                   ---------  ---------  ---------  --------  ---------  -------------  -------------  ----------  --------------  -----------------  -------- 
 Comprehensive 
  income for 
  the year: 
 Loss for 
  the year 
  after taxation           -          -          -         -          -              -              -     (4,146)         (4,146)                  -   (4,146) 
 Other 
 comprehensive 
 income: 
 Gain on 
  revaluation 
  of buildings             -          -          -         -          -              -            135           -             135                  -       135 
 Unrealised 
  exchange 
  gain on 
  translation 
  of foreign 
  subsidiaries             -          -          -         -          -            827            279           -           1,106                  -     1,106 
                   ---------  ---------  ---------  --------  ---------  -------------  -------------  ----------  --------------  -----------------  -------- 
 Total other 
  comprehensive 
  income                   -          -          -         -          -            827            414           -           1,241                  -     1,241 
                   ---------  ---------  ---------  --------  ---------  -------------  -------------  ----------  --------------  -----------------  -------- 
 Total 
  comprehensive 
  income/(loss) 
  for the 
  year                     -          -          -         -          -            827            414     (4,146)         (2,905)                  -   (2,905) 
                   ---------  ---------  ---------  --------  ---------  -------------  -------------  ----------  --------------  -----------------  -------- 
 Shared based 
  payment 
  expense                  -          -          -         -         29              -              -           -              29                  -        29 
 Purchase 
  of 
  non-controlling 
  interest                 -          -          -         -          -              -              -           -               -              (179)     (179) 
                   ---------  ---------  ---------  --------  ---------  -------------  -------------  ----------  --------------  -----------------  -------- 
 At 1 January 
  2017                 6,944      2,984      6,475     (495)         29        (1,865)          2,267       4,935          21,274                  -    21,274 
                   ---------  ---------  ---------  --------  ---------  -------------  -------------  ----------  --------------  -----------------  -------- 
 Comprehensive 
  income for 
  the year: 
 Profit for 
  the year 
  after taxation           -          -          -         -          -              -              -         497             497                  -       497 
 Other 
 comprehensive 
 income: 
 Gain on 
  revaluation 
  of buildings             -          -          -         -          -              -            171           -             171                  -       171 
 Unrealised 
  exchange 
  loss on 
  translation 
  of foreign 
  subsidiaries             -          -          -         -          -        (1,655)          (625)           -         (2,280)                  -   (2,280) 
                   ---------  ---------  ---------  --------  ---------  -------------  -------------  ----------  --------------  -----------------  -------- 
 Total other 
  comprehensive 
  loss                     -          -          -         -          -        (1,655)          (454)           -         (2,109)                  -   (2,109) 
                   ---------  ---------  ---------  --------  ---------  -------------  -------------  ----------  --------------  -----------------  -------- 
 Total 
  comprehensive 
  (loss)/income 
  for the 
  year                     -          -          -         -          -        (1,655)          (454)         497         (1,612)                  -   (1,612) 
                   ---------  ---------  ---------  --------  ---------  -------------  -------------  ----------  --------------  -----------------  -------- 
 Share based 
  payment 
  expense                  -          -          -         -        102              -              -           -             102                  -       102 
                   ---------  ---------  ---------  --------  ---------  -------------  -------------  ----------  --------------  -----------------  -------- 
 At 31 December 
  2017                 6,944      2,984      6,475     (495)        131        (3,520)          1,813       5,432          19,764                  -    19,764 
                   ---------  ---------  ---------  --------  ---------  -------------  -------------  ----------  --------------  -----------------  -------- 
 

BALANCE SHEET

AS AT 31 DECEMBER 2017

 
 
                                                           2017       2016 
 
                                                        GBP'000    GBP'000 
 Assets 
 Non-current assets 
 Property, plant and equipment                           10,778     12,106 
 Intangible assets                                          209        243 
 Deferred income tax asset                                1,901      1,800 
                                                     ----------  --------- 
 Total non-current assets                                12,888     14,149 
 
 Current assets 
 Inventories                                             15,332     17,353 
 Trade and other receivables                              3,991      4,388 
 Cash and cash equivalents                                  327        206 
 Current income tax recoverable                              41         38 
                                                     ----------  --------- 
 Total current assets                                    19,691     21,985 
                                                     ----------  --------- 
 Total assets                                            32,579     36,134 
                                                     ----------  --------- 
 
 Liabilities 
 Current liabilities 
 Trade and other payables                               (4,358)    (4,362) 
 Interest bearing loans, borrowings and overdrafts      (5,641)    (6,781) 
                                                     ----------  --------- 
 Total current liabilities                              (9,999)   (11,143) 
                                                     ----------  --------- 
 
 Non-current liabilities 
 Deferred income tax liability                            (140)      (183) 
 Interest bearing loans, borrowings and overdrafts      (2,676)    (3,534) 
                                                     ----------  --------- 
 Total non-current liabilities                          (2,816)    (3,717) 
                                                     ----------  --------- 
 Total liabilities                                     (12,815)   (14,860) 
                                                     ----------  --------- 
 Net assets                                              19,764     21,274 
                                                     ----------  --------- 
 
 
   Equity 
 Share capital                                            6,944      6,944 
 Share premium                                            2,984      2,984 
 Capital reserve                                          6,475      6,475 
 Shares held by ESOP                                      (495)      (495) 
 Share based payment reserve                                131         29 
 Translation reserve                                    (3,520)    (1,865) 
 Revaluation reserve                                      1,813      2,267 
 Retained earnings                                        5,432      4,935 
                                                     ----------  --------- 
 Total equity                                            19,764     21,274 
                                                     ----------  --------- 
 
 

STATEMENT of cash flows

for the year ended 31 DECEMBER 2017

 
                                                                     2017      2016 
                                                           Note   GBP'000   GBP'000 
 Cash flows from operating activities 
 Cash generated from/(used in) operations                   4       2,299   (1,336) 
 Tax paid                                                            (48)      (81) 
 Interest paid                                                      (516)     (480) 
                                                                 --------  -------- 
 Net cash generated from/(used in) operating activities             1,735   (1,897) 
                                                                 --------  -------- 
 
 Cash flows from investing activities 
 Purchases of property, plant and equipment                         (696)   (1,181) 
 Purchases of intangible assets                                       (2)       (5) 
 Purchase of investments                                                -     (192) 
                                                                 --------  -------- 
 Net cash used in investing activities                              (698)   (1,378) 
                                                                 --------  -------- 
 
 Cash flows from financing activities 
 Proceeds from borrowings                                           1,096     2,364 
 Repayment of bank loans                                          (1,072)   (1,658) 
 New finance lease obligations                                          -       374 
 Repayment of obligations under finance leases                       (84)      (88) 
                                                                 --------  -------- 
 Net cash (used in)/generated from financing activities              (60)       992 
                                                                 --------  -------- 
 Increase/(decrease) in cash and cash equivalents                     977   (2,283) 
                                                                 --------  -------- 
 Cash and cash equivalents at beginning of the year               (3,738)   (1,474) 
 Exchange gains on cash and cash equivalents                           63        19 
                                                                 --------  -------- 
 Cash and cash equivalents at the end of the year                 (2,698)   (3,738) 
                                                                 --------  -------- 
 
 
 

NOTES TO THE FINAnCIAL STATEMENTS for the year ended 31 DECEMBER 2017

   1.     Basis of preparation 

The consolidated financial statements have been prepared on a going concern basis and in accordance with International Financial Reporting Standards ("IFRS") including International Accounting Standards ("IAS") and IFRS Interpretations Committee ("IFRS IC") interpretations and with those parts of the Companies Act 2006 applicable to companies reporting under accounting standards as adopted for use in the EU.

The information in this preliminary statement has been extracted from the audited financial statements for the years ended 31 December 2017 and 2016 and as such, does not constitute statutory accounts within the meaning of s434 of the Companies Act 2006. A full annual report and accounts for the year ended 31 December 2016, on which the auditor has issued an unqualified audit report, has been delivered to the Registrar of Companies. The Group's annual report and accounts for 2017, on which the auditors have issued an unqualified audit report, will be delivered to the Registrar of Companies in due course. No statement has been made by the auditor under Section 498(2) or (3) of the Companies Act 2006 in respect of either of these sets of accounts.

The preliminary announcement was approved by the board of directors and authorised for issue on 26 March 2018.

   2.     Exceptional items 
 
                                                    2017      2016 
                                                 GBP'000   GBP'000 
 
 Cost of sales - exceptional stock provision           -   (4,307) 
                                               ---------  -------- 
 
 

In 2016, the Board conducted a detailed review of the stock holding and recognised a provision of GBP4.307m. This took into account the impact of currency translation, slow moving stock and the potential strategic shift in the business moving towards a higher proportion of hide business. The provision related to low end dress and sport glove leather, with a write down of GBP1.271m in the UK and GBP3.036m in Ethiopia.

   3.     Earnings/(loss) per ordinary share 
 
                                                                      2017       2016 
                                                                   GBP'000    GBP'000 
 Analysis of the profit/(loss) in the year: 
 Profit/(loss) for the year                                            497    (4,146) 
                                                                  --------  --------- 
 
 Weighted average number of ordinary shares in issue (excluding 
  the shares owned by Pittards Employee Share Ownership Trust)       '000s      '000s 
 
 Basic                                                              13,870     13,870 
 Diluted                                                            14,224     14,341 
                                                                  --------  --------- 
 Basic earnings/(loss) per ordinary 50p share                        3.58p   (29.89p) 
 Diluted earnings/(loss) per ordinary 50p share                      3.49p   (28.91p) 
                                                                  --------  --------- 
 
 
   4.     Cash generated from/(used in) operations 
 
                                                                    2017      2016 
                                                                 GBP'000   GBP'000 
 Profit/(loss) before taxation                                       413   (4,071) 
 Adjustments for: 
 Depreciation of property, plant and equipment                       604       605 
 Amortisation                                                         36        35 
 Bank and other interest charges                                     521       480 
 Share based payment expense                                         102        29 
 Other non-cash items in Income Statement                          (133)      (61) 
                                                                --------  -------- 
 Operating cash flows before movement in working capital           1,543   (2,983) 
                                                                --------  -------- 
 Movements in working capital (excluding exchange differences 
  on consolidation): 
 (Increase)/decrease in inventories                                (749)     2,912 
 Increase in receivables                                            (47)     (194) 
 Increase/(decrease) in payables                                   1,552   (1,071) 
                                                                --------  -------- 
 Cash generated from/(used in) operations                          2,299   (1,336) 
                                                                --------  -------- 
 
 
   5.     Taxation 

The group has recognised a deferred tax asset of GBP1.901m (2016: GBP1.800m) in respect of losses out of a total potential deferred tax asset of GBP1.901m (2016: GBP1.800m).

   6.     Additional Information 

Copies of the 2017 Annual Report and Accounts will be posted to shareholders in April and will be available on the company's website at www.pittards.com. Further copies may be obtained by contacting the Company Secretary at Pittards plc, Sherborne Road, Yeovil, Somerset, BA21 5BA. The annual general meeting is to be held at the registered office on 15 May 2018 at 12pm.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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March 27, 2018 02:00 ET (06:00 GMT)

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