Pittards plc (AIM: PTD), the specialist producer of technically advanced leather and luxury leather goods for retailers, manufacturers and distributors, announces a trading update in respect of its year ended 31 December 2020.
End of year summary (Unaudited)
The unaudited results for the year show revenue of circa £15.2m, with revenue of circa £8.6m for the second half, up approximately 30% on the first half. The EBITDA performance was positive during the second half. We finished the year with a reduced break-even point and the cost base aligned to current conditions.
Net debt at the end of the year was £10.1m (£11.3m: 30 June 2020), an improvement of £1.2m on 30 June 2020. Allowing for £0.4m of Company shares purchased into treasury in the period, comparable net debt would have been £9.7m (31 December 2019: £9.6m), meaning that there has been a £1.6m cash improvement through trading since 30 June 2020. Headroom in facilities rose to £3.3m (£2.6m: 31 December 2019).
Inventory levels are the lowest level for six years falling by £2.3m to £15.0m (£17.3m: 31 December 2019).
Customer orders began to rise towards the end of the year, and we started 2021 with an order book stronger than the beginning of the previous 2 years. The ongoing uncertainty associated with the pandemic remains, but the directors consider that there is more opportunity than risk as we look ahead.
The Company expects to announce its results for the full year 2020, and provide a further update on the Company's progress and outlook for FY2021, towards the end of March.
Stephen Yapp - Chairman commented
"The signs of recovery in cash flow and sales, identified at the interim stage, continued better than anticipated, for the remainder of 2020. The progressive increase in orders and cost savings achieved, along with our more diversified portfolio, resulted in the Group achieving revenue growth on the first half, and positive EBITDA for the last six months of the year.
We remain cautious in the short term, and hope the pandemic is now evolving through a final phase to enable the recovery to more normal conditions to commence."