PTD.L Regulatory News (PTD)

Encs

Pittards plc

Sherborne Road, Yeovil,

Somerset, England, BA21 5BA

Telephone: +44(0)1935 474321

Facsimile: +44(0)1935 431820

http://www.pittardsleather.com

E-mail: pittardsenquire@pittards.com

Pittards is a global brand supplying premium leather and leather products, working with leading international brands, retailers and manufacturers. Our future strategy is founded upon product innovation, targeted marketing and efficient logistics, together with the development of new raw material sources.

Unaudited Interim results for the six months ended 30 June 2014

Summary

Stephen Boyd, Chairman of Pittards, commented:

The increasing strength of sterling throughout the first six months of 2014 was a material issue for the business as a significant proportion of sales are invoiced in US dollars and euros. Underlying sales in foreign currencies were slightly increased and had the dollar and euro exchange rates been the same as those prevailing for the first half of 2013, the turnover would have been £18.7m. Although the strength of sterling was a major challenge in the first half of the year it has moderated in the last couple of months and we believe there are good opportunities for growth. With a good product base and tight control of costs we look forward to a stronger second half result.

- ends -

For further information, please contact:

Stephen Boyd, Chairman Pittards plc Tel: 07768 443195

Reg Hankey, CEO Pittards plc Tel: 01935 474321

Jill Williams, Finance Director Pittards plc Tel: 01935 474321

John Wakefield WH Ireland Tel: 0117 945 3470

PITTARDS PLC

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2014

The increasing strength of sterling throughout the first six months of 2014 was a material issue for the business as a significant proportion of sales are invoiced in US dollar and euros. Turnover for the period was £17.4m, compared with £18.4m achieved in 2013. In fact, underlying sales in foreign currencies were slightly increased and had the dollar and euro exchange rates been the same as those prevailing for the first half of 2013, the turnover would have been £18.7m.

Improving sales in our industrial and dress glove manufacturing businesses in Ethiopia were offset by shortfalls in demand for dress glove leathers, which is very weather sensitive and suffered from a mild start to 2013/14 winter worldwide which impacted adversely on glove sales. The other shortfall was military leather, where draw downs from contracts already in place were slow.

Gross margins reduced from 21% to 19% year on year reflecting the reduction in sales due to the strength of sterling, partly offset by some benefit from raw materials purchased in dollars. In the light of this, cost savings were implemented. Distribution and administrative expenses were reduced by £0.331m compared to the prior year.

The profit from operations reduced to £0.504m from £1.099m in the prior year as a result of the above factors and the loss on foreign currency translation.

Net finance costs increased slightly from £0.165m to £0.204m as proportionately more of our borrowings were in Ethiopia where interest rates are substantially higher. This was because we decided to pay our suppliers of raw materials more quickly to secure supplies of suitable hides and skins at better prices, thus helping gross margin. This consequently affected gearing as trade payable balances reduced and borrowings increased and gearing increased from 42% at December 2013 to 45% at 30 June, which was nonetheless still within our target of less than 50%.

After a small tax charge of £0.038m (2013: £0.019m) made up of withholding tax on royalty receipts from Ethiopia and a deferred tax movement the profit after taxation was £0.284m (2013: £0.935m).

Net assets of £16.8m remained at a similar level to 2013 year end and the reduced dress glove leather sell through noted earlier meant that inventory levels were virtually unchanged.

Our global presence as one of the few branded leather producers around the world is reinforced as we continue to exhibit at all the major trade fairs and we were delighted to be visited on our stand at the All Africa Leather Fair in Addis Ababa in February by the new President of Ethiopia, HE Mulatu Teshome Wirtu.

The recently created consumer product division in the UK has recently gained sterling denominated contracts from some prestigious British brands and is currently very busy, having started the year quietly. We have now launched our first Pittards England collection of handbags, available in both our shop and on line (www.pittardsonline.com) which has been well received and is increasingly being picked up in the fashion press.

Relationships with our key customer FootJoy remain strong and volumes of shoe leathers supplied to them have increased as their DNA golf shoe, which was launched in early 2014 and features Pittards Chromoskin leather system, has been a great success.

Our glove manufacturing in Ethiopia, though still relatively small, continues to build.

Although the strength of sterling was a major challenge in the first half of the year it has moderated in the last couple of months and we believe there are good opportunities for growth. With a good product base and tight control of costs we look forward to a stronger second half result.

SD Boyd

Chairman

17 September 2014

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

for the six months ended 30 June 2014

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

for the six months ended 30 June 2014

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

for the six months ended 30 June 2014

CONSOLIDATED BALANCE SHEET (UNAUDITED)

as at 30 June 2014

STATEMENT OF CASH FLOWS (UNAUDITED)

for the six months ended 30 June 2014

NOTES (unaudited)

1. Earnings per share attributable to equity shareholders of the parent

On 15 January 2014 the shareholders approved a 1:50 share consolidation which changed the structure of the share capital from 463,101,933 1p shares to 9,262,039 50p shares. The new holdings have been reflected in this report.

(a) Basic

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the year excluding the shares owned by the Pittards employee share ownership trust.

(b) Diluted

Diluted earnings per share is not presented as there are no outstanding warrants or share options that could have a dilutive effect.

2. Taxation

NOTES (unaudited) continued

3. Deferred taxation

The Group has recognised and unrecognised deferred tax assets in respect of temporary differences and losses.

4. Cash used in operations

NOTES (unaudited) continued

5. Basis of preparation

 The financial information contained in this interim statement has not been audited or reviewed by the Company's auditor and does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The directors approved and authorised this interim statement for issue on 18 September 2014.The financial information for the full preceding year is extracted from the statutory accounts for the financial year ended 31 December 2013. Those accounts, upon which the auditor issued an unqualified opinion, have been delivered to the Registrar of Companies. The auditor's report did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

Pittards plc is a public limited company incorporated and under the Companies Act 2006 in England. It is quoted on the Alternative Investment Market ("AIM").

These financial statements are presented in sterling as that is considered to be the functional currency of the primary economic environment in which the Group operates.

As permitted this interim report has been prepared in accordance with UK AIM listing rules and not in accordance with IAS 34 "Interim Financial Reporting" therefore it is not fully in compliance with IFRS.

The report containing the interim financial information is to be sent direct to shareholders. Copies of the report are available to the public from the registered office of Pittards plc. The address of the registered office is: Pittards plc, Sherborne Road, Yeovil, Somerset BA21 5BA.