26th Sep 2022 13:52
(Alliance News) - Pittards PLC on Monday posted higher half-year revenue and profit, but warned of the continuing impact of global supply chain problems and inflation.
Pittards is a Yeovil, Somerset-based leather and leather goods producer.
In the first six months of 2022, Pittards reported revenue of GBP10.4 million, up 7% from GBP9.7 million in 2021.
Pretax profit climbed by 31% to GBP337,000 from GBP264,000 year-on-year.
"This performance has been delivered against a backdrop of macroeconomic trading conditions that are very complex, particularly the unreliability of supply of materials into our businesses, together with increasing costs, requiring us to adjust processes and plans continuously," the company commented.
It added that around 80% of this revenue was denominated in US dollars, and the continued strengthening of the dollar against the pound will be beneficial to the company in the medium term.
"As reported in our full year 2021 accounts we have a hedging policy in place which protects the downside of currency appreciations but also delays the benefits of sterling weakness," it explained.
On the back of this, Pittards declared an interim dividend of 0.5 pence per share, unchanged from last year.
Looking ahead, Pittards remains optimistic despite of inflationary pressure and global supply chain issues. It added that energy costs remain a challenge, although it has some hedging in plan to try and help mitigate the cost increases.
Chief Executive Reg Hankey said: "We continue to see more opportunities than risk in the current climate and are cautiously optimistic looking forward. Our investment in staff and the strengthening of our management form a solid foundation for sustained growth and the delivery of strategic opportunities."
Shares in Pittards were up 3.4% to 56.34 pence each in London on Monday afternoon.
By Sophie Rose; [email protected]
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