Interim Results

Pittards PLC
6 September 2000


Pittards plc produces technically advanced leather for many of the world's
leading brands of gloves, shoes, luxury leathergoods and sports equipment.

            INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2000             

Summary
                                       Six months ended    Six months ended
                                           30 June 2000        30 June 1999
              
Turnover                                         £40.5m              £30.1m
Percentage export                                   75%                 64%
Profit before taxation                            £1.7m               £0.9m
Earnings per share                                 7.1p                3.5p
Ordinary dividend - interim                        1.1p                1.0p
Net assets per share                               104p                 98p
Gearing                                             22%                 29%


*  Sales up by 34% as demand for our products from international customers
   continues to grow.

*  Profits have advanced substantially, enhanced by measures taken last year
   to reduce costs and improve productivity.

*  Gearing down to 22%.

*  Net assets per share up to 104p.

*  Interim dividend up by 10% to 1.1p.

*  Our increased investment in  innovation and the accelerated pace of new
   product development is delivering results.


Robert Tomkinson, Chairman of Pittards, commented:

'Demand for our products has improved markedly this year.  Much of the
improvement in overall turnover has come from sales of products developed
within the last two years.  There are pressures on our margins and, with fewer
working weeks in the period, we may not match fully in the second half the
profits made in the first six months.  Nevertheless, we are confident of
making substantial further progress for the year as a whole.'


For further information, please contact:

John Pittard, Group Managing Director, Pittards plc, Tel: [phone]
John Buckley, Group Financial Director, Pittards plc, Tel: [phone]


CHAIRMAN'S INTERIM STATEMENT

I am pleased to report profits before tax of £1.695m  for the first half of
2000- a substantial advance on the £0.897m profit earned in the comparable
period of last year.

Demand for our products has improved markedly so far this year, with sales
turnover up by 34% to £40.538m (1999 - £30.142m).  Over 75% of sales were
generated outside the United Kingdom, (1999 - 64%), and the growth of more
than 70% in the value of our sales to customers in the European Community,
despite the weakness of the Euro, is particularly gratifying.  Although some
of the improvement in overall turnover is attributable to the reversal or
absence  of the special factors which depressed sales in 1999, much of it has
come from sales of products developed within the last two years.

Group operating profit increased to £1.921m (1999 - £1.140m) notwithstanding
sharply higher input costs, particularly of hides and skins.  Interest costs
were 7% below those for the first half of 1999, and there was   no tax charge
in the period due to tax losses of approximately £3.1m brought forward from
previous years. After allowing for the preference dividend, earnings were
£1.552m (1999 - £0.754m) equivalent to 7.1p per ordinary share (1999 - 3.5p). 
In view of these improved results, but bearing in mind future capital
investment needs and our long term policy to reduce borrowings, your board has
declared a 10% increase in the interim ordinary dividend to 1.1p (1999 -
1.0p). This will be paid on 6 November 2000 to shareholders on the register on
6 October 2000 (ex dividend date 2 October 2000).

The Glove Leather Division increased its sales turnover by 31% compared to the
first half of last year. This growth was volume rather than price-related.
Sales of high performance leather for golf gloves have recovered strongly
since the destocking exercise by certain customers during the second and third
quarters of last year.   New product introductions figured strongly in glove
leather sales for golf, baseball and other sports categories.  Sales of
leather for dress gloves showed more modest growth overall in volume terms.
The continuing weakness of the Euro caused the Sterling value of sales to
European customers to fall relative to last year, but we have maintained
market share in the face of strong competition, particularly from Italian
manufacturers. 

Turnover in the Shoe & Leathergoods Division was 25% higher than in the first
half of last year with 18% of this improvement attributable to volume.  Sales
of leather for casual footwear and sports shoes showed the largest advances,
helped by the introduction of our new products,  whilst the volume of leather
supplied to manufacturers of luxury leathergoods was also usefully ahead of
the comparable period last year.  The Division's profits were further enhanced
by the contribution from sales of  partly-processed hides, and from contract
tanning for third parties.

The measures taken last year to reduce costs and improve productivity in our
manufacturing Divisions made   a substantial contribution to their increased 
profitability compared to both the first and second halves of 1999.

For the Raw Materials Division, the smallest of our three Divisions, a
shortage in the supply of good quality sheepskins in the first half caused a
steep rise in raw material prices and a reduction in margin, as   selling
prices obtainable from our customers in Europe and the Far East failed to
fully compensate.  Operating profit  fell short of last year, despite a price
driven increase in sales turnover of 64%, and the Division faces some
difficult trading conditions in the months ahead.

Our balance sheet strengthened further during the period.  Shareholders' funds
stood at £25.730m as at 30 June 2000, equivalent to 104p per ordinary share
(30 June 1999 - 98p).  Bank borrowings at the half way stage  were £5.6m,
£1.4m less than at the same time last year, and represented 22% of
shareholders' funds (30 June 1999 - 29%).    We have managed to contain much
of the impact of greater volumes and higher raw material prices on our
investment in stocks and  other working capital.   The increase in borrowings
of £0.6m since the beginning of the year is  far less than would otherwise
arise from a 34% growth in turnover, and from normal seasonal factors. 

We shall shortly be publishing our 2000 Environmental Report, which describes
the effects of our business on the environment and how we are addressing such
matters.  We are confident that the report will make positive reading for our
stakeholders.

The outlook for our manufacturing divisions is good.  For each of our three
divisions, hide and skin prices are substantially above the levels of twelve
months ago, and, in common with most manufacturers in this country, we are
experiencing higher chemical, fuel and other input costs.  With these
pressures on our margins and with fewer working weeks in the period, it is
unlikely that we will match fully in the second half the profits made in the
first six months.  Nevertheless, we are confident of making substantial
further progress for the year as a whole.

ROBERT C TOMKINSON
Chairman


CONSOLIDATED PROFIT AND LOSS ACCOUNT (UNAUDITED)                            
for the six months ended 30 June 2000                            
                            
 Year ended                                         Six months     Six months
31 December                                      ended 30 June  ended 30 June
       1999                                               2000           1999
      £'000                              Note            £'000          £'000
                            
     62,115   Turnover                                  40,538         30,142 
     ------                                             ------         ------
      2,232   Operating profit                           1,921          1,140 
     ------                                             ------         ------
              Profit on ordinary                     
      2,232   activities before interest                 1,921          1,140 
                            
       (473)  Net interest payable                        (226)          (243)
     ------                                             ------         ------
              Profit on ordinary                     
      1,759   activities before taxation                 1,695            897
                            
         (1)  Taxation                                       -              - 
     ------                                             ------         ------
              Profit on ordinary                     
      1,758   activities after taxation                  1,695            897
     ------                                             ------         ------
        6.8p  Earnings per share           1               7.1p           3.5p
     ------                                             ------         ------
              Dividends                     
        285   Preference                                   143            143 
        785   Ordinary                                     240            218 
     ------                                             ------         ------
      1,070                                                383            361 
     ------                                             ------         ------
        688   Retained profit                            1,312            536 
     ======                                             ======         ======
                            
There were no discontinued activities in 2000 or 1999. The results relate
entirely to continuing operations                            


CONSOLIDATED BALANCE SHEET (UNAUDITED)                     
as at 30 June 2000                     
                     
31 December                                             30 June      30 June
       1999                                                2000         1999
      £'000                                               £'000        £'000
                     
     17,850   Fixed assets                               17,648       18,262 
     ------                                              ------       ------
              Current assets              
     12,830   Stocks                                     12,310       11,767 
      8,027   Debtors                                    10,654        8,912 
         14   Investments                                   247           15 
         22   Cash at bank & in hand                         24           44 
     ------                                              ------       ------
     20,893                                              23,235       20,738 
     ------                                              ------       ------
              Creditors - Amounts falling due 
              within one year              
     (4,982)  Bank loans & overdrafts                    (5,550)      (7,028)
     (5,676)  Trade creditors                            (5,388)      (4,313)
     (3,637)  Other creditors                            (4,194)      (3,369)
     ------                                              ------       ------
    (14,295)                                            (15,132)     (14,710)
     ------                                              ------       ------
                     
      6,598   Net current assets                          8,103        6,028 
     ------                                              ------       ------
     24,448   Total assets less current liabilities      25,751       24,290 
     ------                                              ------       ------
                     
              Capital & Reserves              
      8,449   Called up share capital                     8,440        8,449
     15,978   Reserves                                   17,290       15,820 
     ------                                              ------       ------
     24,427   Shareholders' funds                        25,730       24,269 
         21   Minority interest                              21           21
     ------                                              ------       ------
     24,448                                              25,751       24,290 
     ------                                              ------       ------
                     

SUMMARY CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)                          
for the six months ended 30 June 2000                                         

 Year ended                                       Six months      Six months
31 December                                    ended 30 June   ended 30 June
       1999                                             2000            1999
      £'000                              Notes         £'000           £'000
                                          
             Net cash inflow (outflow) 
      2,130  from operating activities     2           1,254            (911)
                                        
             Returns on investments and 
       (735) servicing of finance                       (367)           (293)
                                          
        (92) Taxation                                      -             (91)
                                          
             Capital expenditure and 
             financial investment                             
       (497) - Purchase of tangible fixed assets        (592)           (159)
        (16) - Purchase of shares for ESOP              (285)             (2)
         46  - Sale of tangible fixed assets               -              41
     ------                                           ------          ------
       (467) Net cash outflow from capital expenditure  (877)           (120)
             and financial investment                            
       (763) Equity dividends paid                      (567)           (545)
     ------                                           ------          ------
         73                                             (557)         (1,960)
                                          
             Financing                            
     (4,198) - Repayment of term loans                     -          (4,198)
          -  - Repurchase of preference shares            (9)              -  
        (44) - Capital element of finance lease            -             (29)
               repayments 
     (4,242) - Net cash outflow from financing            (9)         (4,227)
     ------                                           ------          ------
     (4,169) Decrease in cash                           (566)         (6,187)
     ------                                           ------          ------

Reconciliation of net cash flow to movement in net debt

     (4,169) Decrease in cash                           (566)         (6,187)
      4,198  Repayment of term loans                       -           4,198
         44  Capital element of finance lease repayments   -              29
     ------                                           ------          ------
         73  Movement in net debt resulting from cash   (566)         (1,960)
             flows 
         (2) Exchange difference                           -               7
     ------                                           ------          ------
         71  Movement in net debt                       (566)         (1,953)
     (5,031) Net debt at beginning of period          (4,960)         (5,031)
     ------                                           ------          ------
     (4,960) Net debt at end of period                (5,526)         (6,984)
     ------                                           ------          ------
                                          

CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (UNAUDITED)       
for the six months ended 30 June 2000                            

 Year ended                                       Six months      Six months
31 December                                    ended 30 June   ended 30 June
       1999                                             2000            1999
      £'000                                            £'000           £'000
                            
      1,758  Profit on ordinary activities             1,695             897
             after taxation 
                            
             Exchange difference on retranslation of                     
         (2) net assets of subsidiary undertakings         -              (8)
      -----                                            -----           -----
      1,756                                            1,695             889 
      -----                                            -----           -----

NOTES:

1.  The earnings per share are based on a profit on ordinary activities after 
    taxation and preference dividends of £1,552,000 (1999 - £754,000) and on
    21,797,638 (1999 - 21,797,638) ordinary shares being the weighted average
    number of shares in issue during the period.

2.  Reconciliation of operating profit to net cash flows from operating
    activities:

     Year ended                                     Six months    Six months
    31 December                                          ended         ended
           1999                                   30 June 2000  30 June 1999
          £'000                                          £'000         £'000
                            
          2,232  Operating profit                        1,921         1,140
          1,516  Depreciation charges                      794           766
             25  Amortisation of matching shares            52            10
                 under RSP
            (46) Profit on sale of tangible fixed assets     -           (41)
           (601) Decrease (increase) in stocks             520           462
           (886) Increase in debtors                    (2,627)       (1,771)
           (110) Increase (decrease) in creditors          594        (1,477)
          -----                                          -----         -----
          2,130  Net cash inflow (outflow) from          1,254          (911)
          -----  operating activities                    -----         -----

3.  The financial information contained in this interim statement does not
    constitute statutory accounts as defined in section 240 of the Companies
    Act 1985.  The financial information for the full preceding year is based
    on the statutory accounts for the financial year ended 31 December 1999. 
    Those accounts, upon which the auditors issued an unqualified opinion,
    have been delivered to the Registrar of Companies.

4.  The interim financial information has been prepared on the basis of
    accounting policies set out in the Group's statutory accounts for the year
    ended 31 December 1999.

5.  The report containing the interim financial information is to be sent
    direct to shareholders.  Copies of the report and of the 2000
    Environmental Report are available to the public from the registered
    office of Pittards plc.  The address of the registered office is: Pittards
    plc, Sherborne Road, Yeovil, Somerset, BA21 5BA.