Pittards ending 2020 with renewed confidence
Having endured the pandemic-related disruptions that have affected most industries around the world for several months, leathermaker Pittards entered the second half of 2020 with renewed confidence and stability, according to company chairman Stephen Yapp, who added that cashflows were ‘positive and improving’.
According to Mr Yapp, a drive to expand Pittards’ markets while at the same time lowering its costs and improving its margins was giving a clear indication of delivering benefits.
Some 14 per cent of the company’s sales during the first half of 2020 were achieved from new markets. This represented a substantial increase from the 1.5 per cent of total sales from such sources in the first half of last year. In addition, sales grew consistently in the period from May to August.
Chief executive Reg Hankey acknowledged that COVID-19 had caused severe disruption to the Pittards’ business, leading to production volumes falling far below normal levels. However, he added that there were clear signs of an improving order book and a modest recovery in sales revenues, with more opportunity than risk in the ‘new normal’ that is emerging.
The company is currently developing and trialling new products, including antimicrobial and fire-retardant leathers.
This article was originally published on page 4 of the November 2020 issue of SATRA Bulletin.