20 Jul 2020 07:00
20 July 2020
Pittards plc
("Pittards", the "Group" or the "Company")
Trading Update
Pittards plc (AIM: PTD), the AIM listed manufacturer of specialty leather, announces a new loan and trading update.
In order to supplement its existing facilities and strengthen its liquidity the Company has successfully secured and drawn down a CBILS loan of £1m through Lloyds Bank with repayments over six years to 2026.
During the first half, the Group also agreed a re-mortgage of our Yeovil site, through Lloyds Bank, extending existing funding of £1.75m for five years, through to 2025. This brings the Group's total facilities to £13.7 million of which approximately £2.5m is unutilised.
As advised in the full year accounts for 2019, the impact of the Coronavirus pandemic has resulted in reduced demand during the first half. This has been significant, with sales running at 45% of previous year's levels. As a consequence, the interim results will show a significant loss. The Group has however managed the impact on cash through strict cost control measures. At 30th June 2020 borrowings stood at £11.2 million (31 December 2019: £9.8 million).
The plan to mitigate the impact of Covid-19 has focused on cash management. Strict cost control measures, use of existing inventory and management of working capital, together with support from the government furlough scheme have been key. This has been supplemented by all higher paid staff agreeing to salary sacrifice arrangements. June trading has shown signs of recovery, with positive cashflow, and this trend is continuing into July.
Efforts continue to recalibrate our cost base at this new low sales level, anticipating a slow recovery and the ending of the furlough scheme. The Board believes the Group has adequate resources to manage the likely duration of the COVID19 crisis at these reduced sales levels. Encouragingly, there are some early signs of an increase in activity in some of the Group's markets and the Board believes the strategy to diversify the customer base remains valid.
The priority remains the welfare of staff and customers during these challenging times. We will provide a further update on the Company's progress and outlook for the remainder of the year, with our Interim Results to 30 June 2020 at the end of September.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information please contact:
Pittards plc | |
Stephen Yapp - Chairman Reg Hankey - Chief Executive Richard Briere - Chief Financial Officer | 01527 830 630 |
WH Ireland (Nominated Adviser & Joint Broker) | www.whirelandcb.com
|
Mike Coe / Chris Savidge (Corporate Finance) Jasper Berry (Corporate Broking)
| 0207 220 1666 |