PTD.L Regulatory News (PTD)

2 May 2007 12:05

Pittards PLC02 May 2007 CHAIRMAN'S AGM STATEMENT I am pleased to report that we expect to achieve a small operating profit forthe first 4 months of the year. We are still settling in the substantial changes made in 2006 from the closureof Leeds, the transfer of products to Yeovil and Taiwan, and the management ofEthiopia Tannery and there are still significant further benefits to beachieved. The extending of our leather market position, using our strong brand, backed bytechnical and commercial skills, continues well and extremely rapidly. This is evident in the newly launched "Supalite" product for aircraft seating,which takes us into the premier upholstery sector, with an environmentallyfriendly as well as a highly attractive product. Early response has beenexcellent. We are working on extending our management contracts in Ethiopia and otherdeveloping world markets. Opportunities in other forms of skin and hideprocessing are also being brought to us for consideration; this recognises andbuilds on our leading position in the global leather industry. However, these very positive developments in operational and commercial areasare at the moment being overshadowed by the very rapidly weakening dollar. Thechanges we have initiated will eventually overcome even this further challenge,but they will not impact sufficiently quickly to avoid a reduction inprofitability in the second half of the year, which may be significant enough tolead to the year as whole being in loss. We will then start to benefit from the changes mentioned earlier, which willtake us back into profit, as our cost reductions and overseas activities beginto impact positively. Without closing our Leeds factory and transferring products to lowermanufacturing cost areas, we would not have been able to withstand the currentdollar weakness. While the short term trading position will be challenging, withthe revised structure and improvements we have set in train, the outlook for2008 looks much brighter. S D Boyd This information is provided by RNS The company news service from the London Stock Exchange