PTD.L Regulatory News (PTD)

Pittards plc

Interim results to 30 June 2013 

Unaudited Interim results for the six months ended 30 June 2013

Summary

Stephen Boyd, Chairman of Pittards, commented:

"In my 2012 statement last March I described 2012 as a year of transition following major structural changes in the business. I am pleased to report that these changes have yielded benefits in the first half of 2013 with a return to more normal levels of profitability."

- ends -

For further information, please contact:

Stephen Boyd, Chairman Pittards plc Tel: 01935 474321

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 2013

In my 2012 statement last March I described 2012 as a year of transition following major structural changes in the business. I am pleased to report that these changes have yielded benefits in the first half of 2013 with a return to more normal levels of profitability.

Turnover in the period of £18.4m was only marginally ahead of 2012 (£18.3m) but produced a profit from operations before finance costs of £1.1m compared to £0.1m in 2012. This was due in part to a better mix of products sold with a lower concentration of more commodity style leathers and partly due to some easing in skin prices in Ethiopia which remained at the level experienced in the second half of 2012. We also benefitted from a stronger dollar compared to 2012 as a whole.

Distribution and administrative expenses were in line with the prior year and there were no further restructuring costs in 2013. Net finance costs were also very similar in the period. EBITDA for the period thus improved to £1.455m from £0.525m in 2012.

The improved dollar rate led to an increase in the birr/sterling rate at 30 June compared to December 2012 therefore there was an unrealised exchange gain on translation of £0.327m in Other Comprehensive Income.

The revenue of £18.4m included an increased proportion of finished goods as our glove making factory (Pittards Products Manufacturing or PPM) in Ethiopia became more experienced and efficient. Dress glove making is growing alongside the industrial glove production and we have plans to expand this further in 2013 and beyond.

Our new aviation product offering was well received at the Aircraft Interiors Expo in Hamburg in April and we now have in place most of the capital equipment required to take this to bulk production in the next few months.

Net assets strengthened to £17.1m in the period with higher inventories and debtors as all the production units had a busy June period. Net debt accordingly rose from £5.7m to £6.7m in line with the usual seasonal pattern but gearing remained at a creditable 39% (2012:40%), well within our target range.

The change of banking relationship from RBS to Lloyds TSB went smoothly and the increased facilities provided useful flexibility within the business.

We noted in our last Statement that the Companies Court had approved the proposed balance sheet restructuring back in February and our balance sheet now reflects this change with a positive Retained earnings figure of £6.93m (2012: negative £7.68m).

We are now looking into carrying out a share consolidation of the c 463million shares in issue in order to make payment of dividends more practically achievable. We intend to complete this before the current year end with a view to paying a dividend within the next twelve months if the recovery continues and in the absence of unforeseen circumstances.

"Made in Britain" continues to gain momentum and alongside new UK customer relationships we have launched both the Daines & Hathaway luggage range and a premium Pittards England leather clothing range to showcase our increasing capability in UK design and manufacture.

Global uncertainty is still a concern for many businesses but there are signs of recovery in some sectors and geographical areas of the world. We remain committed to our core strategy of investing in and building on our brand in both leather and finished products and our enthusiasm for growing the business and seizing any new opportunities which present themselves remains undimmed.

SD Boyd - Chairman

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

for the six months ended 30 June 2013

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

for the six months ended 30 June 2013

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

for the six months ended 30 June 2013

CONSOLIDATED BALANCE SHEET (UNAUDITED)

as at 30 June 2013

STATEMENT OF CASH FLOWS (UNAUDITED)

for the six months ended 30 June 2013

NOTES (unaudited)

1. Administrative expenses - restructuring costs

The imposition of the crust tariff in December 2011 necessitated a redundancy exercise in early 2012, the cost of which totalled£0.192m at June 2012 and £0.324m at December 2012. This exercise was completed in 2012.

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

In the period to 30 June 2013 options over nil (June 2012: nil) shares were exercised by certain directors and managers under the Matching Share Option Plan established in December 2009. All options expired in February 2013.

(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. 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.

NOTES (unaudited) continued

3. Taxation

4. Deferred taxation

The Group has recognised and 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 £0.257m (2012:£0.176m) of the deferred tax asset in the current period in view of the Group's continued profitability.

The analysis of the deferred tax assets is as follows:

NOTES (unaudited) continued

5. Cash generated from (used in) operations

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 23 August 2013 The financial information for the full preceding year is extracted from the statutory accounts for the financial year ended 31 December 2012. 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.

As reported in Note 1(x) of the statutory accounts for the year ended 31 December 2012 there was a correction in respect of consignment stocks which restated the brought forward balances for both inventory and retained earnings. That restatement has been reflected in this interim statement.

Pittards plc is a public limited company incorporated and domiciled 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 and on its website (www.pittardsleather.com). The address of the registered office is: Pittards plc, Sherborne Road, Yeovil, Somerset, BA21 5BA.