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PITTARDS PLC

(AIM: PTD)

Unaudited Interim results for the six months ended 30 June 2011

Summary

Stephen Boyd, Chairman of Pittards, commented:

"The results for the first half of 2011 demonstrate further progress over 2010 as the Group continues to expand its activities globally."

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For further information, please contact:

PITTARDS PLC

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2011

The results for the first half of 2011 demonstrate further progress over 2010 as the Group continues to expand its activities globally.

We achieved a profit from trading activities of £1.3m, an improvement of 20% compared to the same period last year, despite an environment of fairly severe price inflation on raw materials. Finance costs of £0.2m were slightly higher than last year as we invested more in plant, property and equipment around the Group to support the recovery and increased demand for our products.

The Directors also considered it appropriate to release a further £0.5m from the unrecognised deferred taxation asset, carrying on from the £1.0m released at the end of 2010. This led to a tax credit of £0.4m for the period and hence a profit on continuing operations after taxation of £1.5m (2010: £0.9m).

Revenue for the six months totalled £20.3m, an improvement of 22% on 2010 (£16.6m), reflecting our strong order book throughout this period and despite the dollar being some 6% weaker than in the corresponding period in 2010. Export sales represented 94% of revenue (2010: 92%). The increased revenue is fairly evenly spread across the product range. Sales of sheepskin and goat based products benefitted from early winter cold spells in UK and USA which led customers to restock pipelines. Demand for sports glove leathers was also strong. Sales of hide based products were similarly robust with the military and services sector faring well alongside sport and casual footwear.

Net assets at the end of June 2011 were £12.2m (2010: £8.7m). This improvement reflects continued profitability, the release of a proportion of the previously unrecognised deferred tax asset and further payments against loans.

Net borrowings at the end of the period of £4.5m compared favourably with the 2010 figure of £6.5m as inventories and receivables were tightly managed despite increased activity levels, and this led to a gearing ratio of 37% compared to 75% in 2010.

We continue to work with our legal advisors on restructuring our balance sheet to enable the payment of dividends in the future and we expect this restructuring to have taken place before year-end.

Our retail shop expansion at the Yeovil headquarters will be opening in the next few weeks and spearheading our entry into the consumer product arena, which is an important part of our strategy. Daines and Hathaway, our premium leather goods branded subsidiary, is gaining ground in its sector with a number of new customers and a renewed presence in the USA.

Two exciting new ranges of leather garments, created by our Yeovil based design team, were launched at the PURE show in Olympia in August and are already gaining attention in the fashion world.

Our garment production unit in Ethiopia has just moved to larger rented premises pending the completion of the new factory we are building for garments and leather goods on the Addis ring-road. The neighbouring factory is nearing completion for leather goods and gloves production. We are in the process of training glove makers there in order to service a new order for industrial gloving from a prominent US based wholesaler, which represents a major new opportunity for us.

Work on improving animal husbandry in Ethiopia to improve both skin quality and meat yield and quality continues with GIZ (the German agency for sustainable international development) and we are seeking two or more farms to establish our own flocks which would be bred and farmed in accordance with best practice.

We were delighted to be one of six finalists in the PricewaterhouseCooper West of England Business of the Year Awards in June at only our first attempt. The judges were looking for performance against six criteria, including innovation, business management and contribution to the region and were very complimentary about our business. We have also been shortlisted for two categories in the UK Fashion and Textiles Awards in their 25th year celebrations which will take place in the presence of HRH the Princess Royal in October.

There is some uncertainty about the strength of global demand in the coming months and we continue to face inflationary pressures on raw materials. However our order book remains strong, our relationships with key customers are good and our offshore presence enables us to manufacture in lower cost environments, all of which provide some resilience against adverse conditions.

SD Boyd - Chairman

For further information, please contact:

Stephen Boyd - Chairman - Tel: 07768 443195

Jill Williams - Finance Director - Tel: 01935 474321

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

for the six months ended 30 June 2011

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

for the six months ended 30 June 2011

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

for the six months ended 30 June 2011

CONSOLIDATED BALANCE SHEET (UNAUDITED)

as at 30 June 2011

CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)

for the six months ended 30 June 2011

NOTES (unaudited)

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

In the period to 30 June 2011 options over 7,913,332 (June 2010: 2,633,333) shares were exercised by certain directors and managers under the Matching Share Option Plan established in December 2009. This had the effect of increasing the weighted average number of shares in issue.

(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 calculated by adjusting the weighted average number of ordinary shares by the shares issued under the Matching Share Option scheme in 2011. A calculation is performed to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the company's shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.

2. Cash (used in) generated from operations

3. Taxation

4. Deferred taxation

The Group has unrecognised deferred tax assets in respect of temporary differences and losses. In accordance with the requirements of IAS12 the directors considered the potential utilisation of the deferred tax asset and have decided to recognise £0.5m of the deferred tax asset in the current period in view of the Group's continued profitability (£1.0m was recognised in the year ending 31 December 2010).

The analysis of the deferred tax assets is as follows:

5. Fair value restatement

100% of the shares of Ethiopian Tannery Share Company (ETSC) were acquired on 29 December 2009. The fair value of the acquired assets at the end of 2009 was provisional pending full surveys of the property and inventory and quantification of certain liabilities not yet recognised in ETSC's balance sheet.

As reported at 31 December 2010 the fair values originally stated for certain assets and liabilities were adjusted to take account of new information that came to light in the year post acquisition.

There have been no further restatements or revisions to fair values from those reported at 31 December 2010.

6. 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 14 September 2011. The financial information for the full preceding year is extracted from the statutory accounts for the financial year ended 31 December 2010. 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 in the United Kingdom under the Companies Act 2006. The Company is domiciled in the United Kingdom and is quoted on the Alternative Investment Market ("AIM").

These financial statements are presented in sterling as that is 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.