Situation in Ethiopia and Trading Update

RNS Number : 4162S

Pittards PLC

21 December 2016

 

21 December 2016

Pittards plc

("Pittards" or "the Company")

Situation in Ethiopia and trading update

Pittards plc, the specialist producer of technically advanced leather and luxury leather goods for sale to retailers, manufacturers and distributors today announces an update on the situation in Ethiopia and general trading.

On 10 October the Company reported that following heightened social unrest in Ethiopia, the Ethiopian Prime Minister had declared a state of emergency for six months. In addition, the Foreign and Commonwealth Office had advised against all but essential travel to various regions including East Shewa where the Company's Ethiopian tannery is located.

Although the state of emergency is still in place, the Foreign and Commonwealth Office has lifted its advisory travel restriction. Operations at the Company's tannery in East Shewa were affected by the disruption; some production was lost and levels have not yet returned to the levels pre-disruption. The effect has to some extent been mitigated by undertaking production in the UK but there will nevertheless be an impact on the results for the second half of the year.

The prolonged depressed demand for leather has culminated in disappointing sales volumes in the last few months of the year. Together with the disruption in Ethiopia, the overall performance for the full year ending 31 December 2016 is likely to be lower than our expectations at the time of the half year results.

The new management team is now in place and further progress has been made in the second half to simplify the Group to better position it for growth.

For further information please contact: 

Pittards plc	www.pittardsleather.com
Stephen Yapp, Chairman Reg Hankey, CEO	[phone]
Matt O'Rourke, CFO
WH Ireland Limited	www.whirelandplc.com
Mike Coe/Ed Allsopp	[phone]

 

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