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Pittards PLC (PTD)

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Tuesday 27 August, 2013

Pittards PLC

Half Yearly Report

RNS Number : 4346M
Pittards PLC
27 August 2013
 



 

Pittards plc

Interim results to 30 June 2013 

 

Unaudited Interim results for the six months ended 30 June 2013

Summary

Year ended 31 December 2012



Six months ended 30 June 2013


Six months ended 30 June 2012







£'m



£'m


£'m

37.0


Revenue

18.4


18.3

0.6


Profit from operations before finance costs

1.1


0.1







0.3


Profit before taxation

1.0


-

1.31


EBITDA

1.46


0.53

5.7


Net debt

6.7


6.2

15.6


Shareholders' funds

16.9


15.3









Per ordinary share (pence)




0.06


Profit (basic)

0.20


-

3.57


Net assets

3.69


3.52







36%


Gearing

39%


40%

 

 

Stephen Boyd, Chairman of Pittards, commented:

"In my 2012 statement last March I described 2012 as a year of transition following major structural changes in the business. I am pleased to report that these changes have yielded benefits in the first half of 2013 with a return to more normal levels of profitability."

- 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



PITTARDS PLC

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2013

 

 

In my 2012 statement last March I described 2012 as a year of transition following major structural changes in the business. I am pleased to report that these changes have yielded benefits in the first half of 2013 with a return to more normal levels of profitability.

 

Turnover in the period of £18.4m was only marginally ahead of 2012 (£18.3m) but produced a profit from operations before finance costs of £1.1m compared to £0.1m in 2012. This was due in part to a better mix of products sold with a lower concentration of more commodity style leathers and partly due to some easing in skin prices in Ethiopia which remained at the level experienced in the second half of 2012. We also benefitted from a stronger dollar compared to 2012 as a whole.

 

Distribution and administrative expenses were in line with the prior year and there were no further restructuring costs in 2013. Net finance costs were also very similar in the period. EBITDA for the period thus improved to £1.455m from £0.525m in 2012.

 

The improved dollar rate led to an increase in the birr/sterling rate at 30 June compared to December 2012 therefore there was an unrealised exchange gain on translation of £0.327m in Other Comprehensive Income.

 

The revenue of £18.4m included an increased proportion of finished goods as our glove making factory (Pittards Products Manufacturing or PPM) in Ethiopia became more experienced and efficient. Dress glove making is growing alongside the industrial glove production and we have plans to expand this further in 2013 and beyond.

Our new aviation product offering was well received at the Aircraft Interiors Expo in Hamburg in April and we now have in place most of the capital equipment required to take this to bulk production in the next few months.

 

Net assets strengthened to £17.1m in the period with higher inventories and debtors as all the production units had a busy June period.  Net debt accordingly rose from £5.7m to £6.7m in line with the usual seasonal pattern but gearing remained at a creditable 39% (2012:40%), well within our target range.

The change of banking relationship from RBS to Lloyds TSB went smoothly and the increased facilities provided useful flexibility within the business.

 

We noted in our last Statement that the Companies Court had approved the proposed balance sheet restructuring back in February and our balance sheet now reflects this change with a positive Retained earnings figure of £6.93m (2012: negative £7.68m).

We are now looking into carrying out a share consolidation of the c 463million shares in issue in order to make payment of dividends more practically achievable. We intend to complete this before the current year end with a view to paying a dividend within the next twelve months if the recovery continues and in the absence of unforeseen circumstances.

 

"Made in Britain" continues to gain momentum and alongside new UK customer relationships we have launched both the Daines & Hathaway luggage range and a premium Pittards England leather clothing range to showcase our increasing capability in UK design and manufacture.

 

Global uncertainty is still a concern for many businesses but there are signs of recovery in some sectors and geographical areas of the world. We remain committed to our core strategy of investing in and building on our brand in both leather and finished products and our enthusiasm for growing the business and seizing any new opportunities which present themselves remains undimmed.

 

 

 

 

 

SD Boyd - Chairman

 

 

 



 

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

for the six months ended 30 June 2013

 

Year ended 31 December 2012



 

 

Note

Six months ended 30 June 2013


Six months ended 30 June 2012

 

£'000




£'000


£'000

37,029


Revenue


18,431


18,276

(30,590)


Cost of sales


(14,600)


(15,218)

6,439


Gross profit


3,831


3,058








(2,389)


Distribution costs


(1,227)


(1,191)

(3,152)


Administrative expenses


(1,505)


(1,526)

(324)


Administrative expenses - restructuring costs

1

-


(192)

574


Profit from operations before finance costs


1,099


149

(335)


Finance costs


(165)


(137)

61


Finance income


20


-

300


Profit before taxation


954


12

(30)


Taxation charge

3

(19)


(11)

270


Profit for the period after taxation


935


1



Profit attributable to:





270


Owners of the parent


935


1

-


Non controlling interest


-


-










Earnings per share attributable to equity shareholders of the parent                        

2




0.06p


- basic


0.20p


-

0.06p


- diluted


0.20p


-








 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

for the six months ended 30 June 2013

 

Year ended 31 December

2012



 

 

Note

Six months ended 30 June 2013


Six months ended 30

 June 2012

£'000




£'000


£'000

 

270


 

Profit for the period after taxation


 

935


 

1










Other comprehensive income





(776)


Unrealised exchange loss on translation of overseas subsidiaries


327


(332)

266


Revaluation of land and buildings


-


-

(510)


Other comprehensive income


327


(331)

(240)


Total comprehensive income for the period


1,262


(331)



Total comprehensive income attributable to:





(215)


Owners of the parent


1,254


(322)

(25)


Non controlling interest


8


(9)


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

for the six months ended 30 June 2013



Share capital

Share

premium

Capital redemption  reserve

Capital reserve

Retained earnings

Translation reserve

Shares held by ESOP

Revaluation reserve

Share options reserve

Total attributable to owners

of the parent

Non-controlling interest

Total equity



£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000















At 1 January 2012  - restated


4,410

5,250

8,158

6,475

(7,683)

(1,773)

(495)

1,211

48

15,601

213

15,814

Comprehensive income for the period














Retained profit for the period


-

-

-

-

1

-

-

-

-

1

-

1

Other comprehensive income














Unrealised exchange loss on  translation of foreign subsidiaries


-

-

-

-

-

(276)

-

(47)

-

(323)

(9)

(332)

Total comprehensive income for the period


-

-

-

-

1

(276)

-

(47)

-

(322)

(9)

(331)

Transactions with owners














Proceeds from shares issued


-

-

-

-

-

-

-

-

-

-

-

-

Total transactions with owners


-

-

-

-

-

-

-

-

-

-

-

-

At 30 June 2012


4,410

5,250

8,158

6,475

(7,682)

(2,049)

(495)

1,164

48

15,279

204

15,483

Comprehensive income for the period














Retained profit for the period


-

-

-

-

269

-

-

-

-

269

-

269

Other comprehensive income














Unrealised exchange loss on  translation of foreign subsidiaries


-

-

-

-

-

(368)

-

(56)

-

(424)

(20)

(444)

Gain on the revaluation of buildings


-

-

-

-

-

-

-

262


262

4

266

Total comprehensive income for the period


-

-

-

-

269

(368)

-

206

-

107

(16)

91

Transactions with owners














Proceeds from shares issued


221

-

-

-

-

-

-

-

-

221

-

221

Total transactions with owners


221

-

-

-

-

-

-

-

-

221

-

221

At 31 December 2012


4,631

5,250

8,158

6,475

(7,413)

(2,417)

(495)

1,370

48

15,607

188

15,795

Comprehensive income for the period














Retained profit for the period


-

-

-

-

935

-

-

-

-

935

-

935

Other comprehensive income














Unrealised exchange loss on  translation of foreign subsidiaries


-

-

-

-

-

258

-

61

-

319

8

327

Gain on the revaluation of buildings


-

-

-

-

-

-

-

-

-

-

-

-

Total comprehensive income for the period


-

-

-

-

935

258

-

61

-

1,254

8

1,262

Transactions with owners














Proceeds from shares issued


-

-

-

-

-

-

-

-

-

-

-

-

Reserves transfer


-

(5,250)

(8,158)

-

13,408

-

-

-

-

-

-

-

Total transactions with owners


-

(5,250)

(8,158)

-

13,408

-

-

-

-

-

-

-

At 30 June 2013


4,631

-

-

6,475

6,930

(2,159)

(495)

1,431

48

16,861

196

17,057


CONSOLIDATED BALANCE SHEET (UNAUDITED)

as at 30 June 2013

 

31 December 2012



 

Note

30 June 2013


30 June 2012

£'000




£'000


£'000



ASSETS




restated



Non-current assets





6,165


Property,plant and equipment


6,246


6,187

112


Intangible assets


135


92

1,602


Deferred income tax asset

4

1,567


2,005

5


Available for sale financial instruments


2


16

7,884


Total non-current assets


7,950


8,300










Current assets





14,287


Inventories


15,597


15,242

4,534


Trade and other receivables


6,497


5,000

817


Cash and cash equivalents


675


353

30


Current income tax recoverable


75


-

403


Deferred income tax asset

4

433


-

20,071


Total current assets


23,277


20,595

27,955


Total assets


31,227


28,895










LIABILITIES







Current liabilities





(5,681)


Trade and other payables


(6,829)


(6,833)

-


Current income tax liability


-


-

(5,373)


Interest bearing loans, borrowings and overdrafts


(6,478)


(6,554)

(11,054)


Total current liabilities


(13,307)


(13,387)










Non-current liabilities





(1,106)


Interest bearing loans, borrowings and overdrafts


(863)


(25)

(1,106)


Total non-current liabilities


(863)


(25)

(12,160)


Total liabilities


(14,170)


(13,412)








15,795


Net assets


17,057


15,483










EQUITY





4,631


Share capital


4,631


4,410

5,250


Share premium account


-


5,250

8,158


Capital redemption reserve


-


8,158

6,475


Capital reserve


6,475


6,475

(495)


Shares held by ESOP


(495)


(495)

(7,413)


Retained earnings


6,930


(7,682)

(2,417)


Translation reserve


(2,159)


(2,049)

1,370


Revaluation reserve


1,431


1,164

48


Share options reserve


48


48

15,607


Total equity attributable to owners of the parent


16,861


15,279

188


Non-controlling interest


196


204

15,795


Total equity


17,057


15,483

 



STATEMENT OF CASH FLOWS (UNAUDITED)

for the six months ended 30 June 2013

 

 

Year ended 31 December

2012



 

 

Six months ended 30 June 2013


 

Six months ended 30 June 2012

£'000



Note

£'000


£'000










Cash flows from operating activities





170


Cash generated from (used in) operations

5

(449)


(853)

(69)


Tax paid


(64)


(22)

(343)


Interest paid


(133)


(84)

(242)


Net cash used in operating activities


(646)


(959)










Cash flows from investing activities












(639)


Purchases of property, plant and equipment


(225)


(301)

(103)


Purchases of intangible assets


(26)


(80)

(742)


Net cash used in investing activities


(251)


(381)










Cash flows from financing activities












1,580


Loan financing


-


-

(609)


Repayment of bank loans


(710)


(448)

58


New finance lease obligations


68


42

-


Repayment of obligations under finance leases


(13)


(3)

221


Share issue


-


-

1,250


Net cash generated from (used in) financing activities


(655)


(409)








266


Increase (decrease) in cash and cash equivalents


(1,552)


(1,749)








(3,412)


Cash and cash equivalents at beginning of period


(3,105)


(3,412)

41


Exchange gains (losses) on cash and cash equivalents


(12)


14

(3,105)


Cash and cash equivalents at end of period


(4,669)


(5,147)

 

 

 

 

 

 

NOTES (unaudited)

 

1.     Administrative expenses - restructuring costs

The imposition of the crust tariff in December 2011 necessitated a redundancy exercise in early 2012, the cost of which totalled£0.192m at June 2012 and £0.324m at December 2012. This exercise was completed in 2012.

 

 

 

 

 

2.     Earnings per share attributable to equity shareholders of the parent

 

In the period to 30 June 2013 options over nil (June 2012: nil) shares were exercised by certain directors and managers under the Matching Share Option Plan established in December 2009. All options expired in February 2013.

 

(a)          Basic

 

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the year excluding the shares owned by the Pittards employee share ownership trust.

 

Year ended 31 December

2012


Six months ended 30 June 2013


Six months ended 30

June 2012

£'000


£'000


£'000

270

Profit attributable to equity holders of the company

935


1








Shares

'000


Shares

'000

442,031

Weighted average number of ordinary shares in issue

462,151


440,098

 

(b)           Diluted

 

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares by the shares issued under the Matching Share Option scheme.  A calculation is performed to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the company's shares) based on the monetary value of the subscription rights attached to outstanding share options.  The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.

 

 

Year ended 31 December

2012


Six months ended 30 June 2013


Six months ended 30

June 2012

£'000


£'000


£'000

270

Profit used to determine diluted earnings per share

935


2








Shares

'000


Shares

'000

444,188

Weighted average number of ordinary shares in issue

462,151


442,716

 

 

 

 

 

NOTES (unaudited) continued

 

3.     Taxation

 

 

Year ended 31 December

2012




 

Six months ended 30 June 2013


 

Six months ended 30 June 2012

£'000




£'000


£'000



Analysis of the charge in the period

The charge  based on the profit  for the year comprises:





-


Corporation tax on profit for the year


-


-

30


Foreign tax


19


11

30


Total current tax


19


11



Deferred tax





(90)


Origination and reversal of temporary differences


-


(33)

90


Impact of change in UK tax rate


-


33

-


Total deferred tax


-


-

30


Income tax charge


19


11

 

 

 

 

 

4.     Deferred taxation

 

The Group has recognised and unrecognised deferred tax assets in respect of temporary differences and losses. In accordance with the requirements of  IAS12 the directors considered the potential utilisation of the deferred tax asset and  have decided to recognise £0.257m (2012:£0.176m) of the deferred tax asset in the current period in view of the Group's continued profitability.

 

The analysis of the deferred tax assets is as follows:

 

Year ended



Six months

ended

Six months ended

31 December 2012

£'000



     30 June

2013

 

£'000

     30 June

2012

 

£'000

2,005


Recognised

2,000

2,005

696


Unrecognised

444

937

2,701


Total

2,444

2,942

 

 

 

 

 

NOTES (unaudited) continued

 

5.     Cash generated from (used in) operations

 

Year ended 31 December

2012



 

 

Six months ended 30 June 2013


 

Six months ended 30 June 2012




 

£'000


£'000








300


Profit before taxation


954


12



Adjustments for:





730


Depreciation of property plant and equipment


353


373

6


Amortisation


3


3

                          104


Other non-cash items in Income Statement


3


(7)

343


Bank and other interest charges


133


84

1,483


Operating cash flows before movement in working capital


1,446


465



Movements in working capital (excluding exchange differences on consolidation)





(440)


Increase in inventories


(1,021)


(1,088)

(1,039)


Increase in trade and other receivables


(1,822)


(1,292)

166


Increase in trade and other payables


948


1,062

170


Cash generated from (used in) operations


(449)


(853)

 

 

 

 

 

6.     Basis of preparation

 

 The financial information contained in this interim statement has not been audited or reviewed by the Company's auditor and does not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  The directors approved and authorised this interim statement for issue on 23 August  2013  The financial information for the full preceding year is extracted from the statutory accounts for the financial year ended 31 December 2012.  Those accounts, upon which the auditor issued an unqualified opinion, have been delivered to the Registrar of Companies.  The auditor's report did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

 

As reported in Note 1(x) of the statutory accounts for the year ended 31 December 2012 there was a correction in respect of consignment stocks which restated the brought forward balances for both inventory and retained earnings. That restatement has been reflected in this interim statement.

 

Pittards plc is a public limited company incorporated and domiciled under the Companies Act 2006 in England.  It is quoted on the Alternative Investment Market ("AIM").

 

These financial statements are presented in sterling as that is considered to be the functional currency of the primary economic environment in which the Group operates.

 

As permitted this interim report has been prepared in accordance with UK AIM listing rules and not in accordance with IAS 34 "Interim Financial Reporting" therefore it is not fully in compliance with IFRS.

 

The report containing the interim financial information is to be sent direct to shareholders.  Copies of the report are available to the public from the registered office of Pittards plc and on its website (www.pittardsleather.com).  The address of the registered office is: Pittards plc, Sherborne Road, Yeovil,  Somerset, BA21 5BA.

 

 


This information is provided by RNS
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