Leather producer and supplier Pittards is looking forward to a stronger year in 2021 following a resilient performance in 2020. Chairman Stephen Yapp stated that the company has taken the opportunity to refine and reshape its business, positioning it for success in the coming year. Despite the challenges brought on by the COVID-19 pandemic, Pittards displayed its resilience by achieving partially positive results for the year ended December 31, 2020.

In the face of the pandemic, Pittards experienced disruptions, particularly in the first half of the year. However, the company saw improvements in the second half, reporting a break-even period and a return to positive core earnings. This was aided by significant improvements in cash flow, which was the result of inventory reduction and operational optimization.

Nevertheless, the overall revenue for 2020 dropped to £15.2 million from £22.3 million in 2019. Gross profit also experienced a decline from £6.9 million to £3.2 million, with the gross margin decreasing from 31% to 21%. Pittards recorded a pre-tax loss of £3.2 million, compared to a gain of £0.6 million the previous year. Additionally, an EBITDA loss of £1.1 million was reported, contrasting with a gain of £2 million in the previous year.

However, there were positive aspects in Pittards’ financial report. The order book for 2021 is stronger than in previous years, and underlying margins improved compared to 2019. The company also highlighted its developments in the interiors market and its shoe manufacturing operations in Ethiopia as priority development markets.

Looking ahead, Yapp expressed confidence in the company’s ability to seize market opportunities. With its reshaped and more agile business, Pittards is poised for growth and focused on creating long-term value. Although the strength of the recovery is still uncertain, the company is optimistic about building on the momentum gained in the second half of 2020 and making further progress in 2021. Overall, Pittards is well-positioned to take advantage of market opportunities and drive future growth.

Additional Resources:
– For more information on Pittards, visit their official website here.
– To learn more about the leather industry and its trends, you can visit this article here.