Final Results

PITTARDS plc

(AIM:PTD)

Preliminary announcement of results for the year ended 31 December 2013

Financial highlights

- Revenue down 3%

- Profit from trading activities before finance costs up to £2.0m (2012: £0.6m)

- Profit before tax up to £1.7m (2012: £0.3m)

- EBITDA up to £2.364m (2012: £1.310m)

- Cash used in operating activities of £0.7m (2012: generated £0.2m)

- Net assets increased to £16.9m (2012: £15.8m)

- Gearing now 42% (2012: 36%)

Stephen Boyd, Chairman of Pittards, commented:

I am pleased to report that the recovery noted in my interim statement, following the turbulence of 2012, continued throughout 2013.

- ends -

For further information, please contact:

Stephen Boyd, Chairman Pittards plc Tel: 01935 474321

Reg Hankey, CEO Pittards plc Tel: 01935 474321

Jill Williams, Finance Director Pittards plc Tel: 01935 474321

John Wakefield WH Ireland Tel: 0117 945 3470

Preliminary announcement of results

For year ended 31 December 2013

Chairman's statement

I am pleased to report that the recovery noted in my interim statement, following the turbulence of 2012, continued throughout 2013.

Turnover of £35.8m represented a reduction from £37.0m in 2012, and was due to a lower proportion of commodity style leather sales where high skin prices in early 2013 had made us temporarily uncompetitive, hence the mix of products sold in 2013 produced a higher gross margin of 20.4% compared to 17.4% in 2012. This was achieved despite hide prices staying firm all year. This, coupled with tight control of costs in the business, led to a profit from operations before finance costs of £2.004m compared to £0.574m in 2012.

The dollar was stronger in the first half of 2013 than it had been in 2012 which was beneficial given our level of dollar denominated export sales, but the decline to nearly $1.65 at the end of the year had an adverse effect on both turnover in the final quarter and the balance sheet, which tempered the overall result somewhat.

Net finance costs were slightly higher than last year due to high skin prices in the first half of the year leading to higher borrowings in Ethiopia where interest rates are higher than in the UK, but skin prices eased to more normal levels in the second half of the year. Profit before tax was £1.712m (2012: £0.300m) and EBITDA therefore improved to £2.364m from £1.310m in 2012.

There is a taxation charge of £0.265m for the year (2012: £0.030m representing withholding tax only). This is principally due to the effect of changes in UK tax rate on the deferred taxation asset but as we have brought forward tax losses no tax will actually be payable in the near future.

Net assets increased again to £16.912m from £15.795m with inventory and receivables up following a busy December. Net debt therefore rose from £5.7m to £7.1m but gearing of 41.9% (2012: 35.8%) remained well within our target of below 50%. Our banking relationships with Lloyds in UK and Commercial Bank of Ethiopia remain strong and supportive.

Following the balance sheet restructuring in February 2013 we now have positive retained earnings of £7.492m. The share consolidation exercise on a 1:50 basis was approved by shareholders at a general meeting in January 2014; hence we have included some statistics on both bases within this Report. As indicated previously, payment of a dividend is now feasible as soon as it is felt appropriate for the business.

Both industrial glove and dress glove production at our Pittards Product Manufacturing (PPM) factory in Ethiopia increased and are becoming more significant to our total turnover as efficiencies continue to improve and we train more staff.

The Design Centre in Yeovil is now a fully fledged production unit making for both our Pittards and Daines & Hathaway brands and we were delighted to recently receive a New to Apprentices award in the Somerset Apprenticeship awards to reflect our efforts in recruiting apprentices for this new area of the business. We are now looking to add to our retail presence as recognition of our brand continues to grow and the Made In Britain movement advances still further.

Our combined workforce of over 1300 across the UK and Ethiopian factories has shown great commitment during the year and it is pleasing to see our results reflect this level of effort.

Louise Cretton stepped down as a non-executive director at the end of 2013 after 12 years' valuable service and I thank her for the valuable contribution she made to the business during that time. We were pleased to welcome Godfrey Davis, Chairman of Mulberry, onto the board in February this year and look forward to receiving his insights, particularly on the luxury leathergoods market.

The global trading situation looks brighter than it has since the recession and should provide many opportunities to grow the business and continue with our core strategy in the future. The current relative weakness of the dollar is a concern but we will seek to mitigate its effect wherever possible.

Stephen Boyd

Chairman

17 March 2014

CONSOLIDATED INCOME STATEMENT

for the year ended 31 December 2013

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 31 December 2013

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the year ended 31 December 2013

BALANCE SHEETS

As at 31 December 2013

STATEMENT OF CASH FLOWS

for the year ended 31 December 2013

Notes

1. The figures for the years ended 31 December 2013 and 2012 do not constitute statutory accounts within the meaning of s434 of the Companies Act 2006. The figures for the year ended 31 December 2013 have been extracted from the statutory accounts for that year which have yet to be delivered to the Registrar of Companies and on which the auditor has issued an unqualified audit report. A full Report and Accounts for the year ended 31 December 2012, on which the auditor has issued an unqualified audit report has been delivered to the Registrar of Companies. No statement has been made by the auditor under Section 498(2) or (3) of the Companies Act 2006 in respect of either of these sets of accounts.

This preliminary announcement was approved by the board of directors and authorised for issue on 18 March 2014.

2. Basis of preparation

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards adopted by the International Accounting Standards Board ("IASB") and interpretations issued by the International Financial Reporting Interpretations Committee of the IASB (together "IFRS") as endorsed by the European Union.

The consolidated financial statements have been prepared in accordance with the Companies Act 2006, applicable to companies reporting under IFRS.

The information in this preliminary statement has been extracted from the audited financial statements for the year ended 31 December 2013 and as such, does not contain all the information required to be disclosed in the financial statements prepared in accordance with the International Financial Reporting Standards ('IFRS').

3. Earnings per ordinary share

4. Cash (used in) generated from operations

Notes - continued

5. Taxation

The Group has recognised a deferred tax asset of £1.800m (2012: £2.005m)in respect of losses out of a total potential deferred tax asset of £2.271m (2012: £2.716m). The element of the deferred tax asset not yet recognised would be available to be utilised against future UK taxable profits.

There was a tax charge of £0.265m (2012: £0.030m) representing the effect on the deferred taxation asset of changes in UK Corporation tax rates and withholding tax on payments of royalties from Ethiopia.

6. Administrative expenses

Exceptional restructuring costs

The imposition of the crust tariff in Ethiopia in 2011 necessitated a redundancy exercise for production staff in 2012 plus various other exceptional costs of reorganisation which totalled £0.324m.

There were no exceptional restructuring costs in 2013.

7. Copies of the 2013 Annual Report and Accounts will be posted to shareholders in April and will be available on the Company's website at www.pittardsleather.com. Further copies may be obtained by contacting the Company Secretary at Pittards plc, Sherborne Road, Yeovil, Somerset, BA21 5BA. The annual general meeting is to be held at the registered office on 15 May 2014.