LONDON (Alliance News) - Luxury leather goods producer Pittards PLC said on Tuesday that revenue rose 12% year over year in 2017 after increased volumes in existing markets in both UK and Ethiopia.
Pittards revenue grew to GBP30.3 million from GBP27.0 million in 2016 and pretax profit improved to GBP400.000, after a loss of GBP4.1 million in the previous year. The loss in 2016 was caused by an exceptional write-down in the value of GBP4.3 million.
The profit improvement is a result of higher turnover and operational efficiencies, the company said.
Stock levels reduced in the year to GBP15.3 million at the end of 2017 from GBP17.4 million in 2016, 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 Pittards anticipate making further progress in 2018, according to Pittards.
The foundations of Pittards business remain the footwear and performance glove markets, the company said. The global glove market, worth about USD250 million, is seeing a shift towards casual and active leather gloves, which presents further opportunities, it said.
"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 USD60 billion," said Pittards Chairman Stephen Yapp.
According to luxury leather goods producer, the 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.
Looking ahead, "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," the company said.
Shares in Pittards were up 0.6% at 80.00 pence per share on Tuesday.
