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Pittards PLC (PTD)

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Wednesday 30 September, 2020

Pittards PLC

Interim Results

RNS Number : 4931A
Pittards PLC
30 September 2020
 

 

 

Pittards plc

 

("Pittards", the "Group" or the "Company" )

 

Interim results for the six months ended 30 June 2020

 

 

 

Pittards plc, the specialist producer of technically advanced leather and luxury leather goods for retailers, manufacturers and distributors, today announces its results for the six months ended 30 June 2020.

 

Key financials

· Revenue for the first half £6.6m (H1 2019: £12.1m)

· EBITDA negative £1.3m (H1 2019: £1.2m positive)

· Loss before tax amounted to £2.3m (H1 2019: £0.2m profit)

· Net assets were £14.6m (31 December 2019: £17.9m)

· Gross margin was 17.1% (31 December 2019: 29.7%)

· Group cash facilities headroom of £2.5m (£2.7m: 2019) including CBILS completed July 2020

 

Stephen Yapp, Chairman, said: -

"Despite the disruption of the first half, we enter the second half with renewed confidence and stability and with positive and improving cash flows. Our strategy to enlarge our portfolio of markets, products, improve quality of margin and lower our cost base, is showing clear signs of delivering benefits to the business. Over 14% of sales in the first half compared to 1.5% in H1 2019 were from our new target markets, and overall sales have consistently risen from May through to August. We are well positioned to deliver positive operational cashflow in the second half together with a reduction in net debt compared to the half year."

 

Further enquiries:

Pittards plc 

 

Stephen Yapp - Chairman

Reg Hankey - Chief Executive

Richard Briere - Group Finance Director

01527 830 630

 

 

WH Ireland (Nominated Adviser and Broker)

www.whirelandcb.com

Mike Coe / Chris Savidge (Corporate Finance)

Jasper Berry (Corporate Broking)

0207 220 1666

 

 

 

 

CEO report

The impact of the global pandemic had a material effect on our business in the first half, adversely affecting our short-term sales revenue across our entire business. Over 90% of our sales are exported, which exposes us to global demand, logistics and supply chain effects. In response to this challenging environment we put together a programme of change which prioritised the safety of our people, customers, and cash. Our cash strategy has delivered improvements in the areas of inventory, working capital and cost control.

 

Key financials

· Revenue for the first half £6.6m (H1 2019: £12.1m)

· EBITDA negative £1.3m (H1 2019: £1.2m positive)

· Loss before tax amounted to £2.3m (H1 2019: £0.2m profit)

· Net assets were £14.6m (31 December 2019: £17.9m)

· Gross margin was 17.1% (31 December 2019: 29.7%)

· Group cash facilities headroom of £2.5m (£2.7m: 2019) including CBILS completed July 2020

 

Operational and strategic update

 

The global nature of our business with over 90% of Group sales outside of Europe and our core customer base having a higher dependency on manufacturing facilities in South East Asia, exposed us earlier to the turbulence brought about by the pandemic than a UK centric business. As early as January activity was not following an expected pattern and slowed from then on. This slow down affected both our UK and Ethiopian businesses.

The lockdowns that followed around the world impacted on consumer confidence and had a significant effect on first half operations. The peak of our lockdown period was during April when we furloughed 122 out of 175 total UK staff. There was no furlough scheme in Ethiopia, although there were some measures available to address cost in accordance with Ethiopian labour laws.

Sales in the first half to our core customers were 62% down on the equivalent period last year, with the US market particularly hard hit as the first half unfolded. Our factories, both in UK and Ethiopia, remained open and delivered product to certain customers who are key suppliers to COVID19 response services both in the UK and overseas to ensure supplies were maintained. We switched our finished goods manufacturing facilities to produce both face masks and bags for scrubs.

The easing of lockdown restrictions between June and August created a period of greater stability which resulted in a significant increase in sales into our growth customers, in particular automotive, shoe and speciality consumer goods. With a more diversified portfolio, the shape of the business continues to improve despite the impact of the COVID19 lockdown, which has  obscured the progress the Group is making.

In our markets the aviation market has been hardest hit with sales yet to recover. We are making progress in the automotive market and although some customers closed temporarily in the first half, we have seen sales growth in the second half to date. Military and support services sales also showed some recovery leading into the second half.

Between June and August sales into our new target markets accounted for 26% of sales, compared to 14% in the first half. We have also seen some positive order trends in golf, defence, cycling and speciality endurance gloves and indeed sports in general, as our core existing customers show signs of recovery, with sales orders up since the half year.

We have continued to work on developing our innovation product portfolio, including our new Tri Protex antimicrobial leather and a further product line for fire-retardant leather in to Rail applications, for which trials are ongoing.  

 

Financial update

Severe disruption due to COVID19 dominated the first half, with significantly reduced activity and production volumes falling far below normal levels. In response, we have been recalibrating our business, including a re-shaping of the cost base which is expected to be finalised before the end of the year.

 

The loss before tax in the first half amounted to £2.3m loss (2019: £0.2m profit), which was entirely due to reduction in volumes although the impact was partially offset by cost reductions.

Gross margins fell to 17.1% (H1 2019: 29.7%). However, pure variable material margins continued to improve due to a better mix of business and lower input costs. We have recalibrated our capacity for new volumes and aim to achieve improved reported margins in the second half of 2020, this has already been visible in both July and August, with gross variable margins also improving.

We have reduced Group headcount from 1740 at the beginning of 2019, to 1052 as at 30 June 2020, whilst preserving our capacity to respond to an increased level of demand as markets recover. This has been facilitated by the investment in automation in recent years, new technology, people, and more flexible working arrangements.

Administrative costs fell during the period helped by all Directors and senior staff participating in a salary sacrifice arrangement. We continue to hedge the US dollar to balance currency risks.  Currency losses in the period were £0.4m with a corresponding gain within revenue.

At the period end net assets fell to £14.6m (December 2019: £17.5m). Net debt was up by £1.4m to £11.3m (£9.9m: 31 December 2019) with most of the increase occurring during the period to April. Net debt has since reduced and at the end of August stood at £10.9m. 

During the first half the Group refinanced the UK mortgage with Lloyds, which was previously £1.20m to £1.75m. It also secured a new £1m CBILS (Coronavirus Business Interruption Loan) loan, repayable over six years. This was agreed in June and formally signed and drawn down in July. Our cash headroom has been maintained at similar levels to December 2019, at £2.5m (2019: £2.6m). The profile of our debt has improved as long-term debt has increased to £2.0m from £0.4m at the last year end.

Overall stock has been reduced by £0.5m to £16.8m at the half year. This reduction has continued into the second half with inventory falling at the end of August falling to £16.3m. Our supplier average payment days fell to 57 days at the end of June (H1 2019: 59 days), assisting our supply chain management. Our customer average days to pay rose to 69 days (H1 2019: 55 days). The increase in debtor days was mostly due to a change in mix of customers. Over 80% of customer accounts are still credit insured.

During the UK national lockdown, we furloughed 122 staff, but this number fell consistently from May to stand at 27 staff at the end of September. In what has been a successful programme, we sought to bring staff back as soon as we could. The furlough scheme enabled the business to both preserve jobs and recalibrate its cost base, creating the time and space to reshape our approach to the new norm. The impact of furlough payments on our second half profitability and cashflow will be limited.

 

Outlook

There are clear signs of a modest recovery in our sales revenue during Q3, along with a progressively improving order book. We are cautiously optimistic that the positive trend since May will continue for the remainder of the year, however, it remains too early to judge the sustainability and scale of further recovery.

Our management of cash in the first half and our success in putting in place a new working model, which is sustainable at much reduced volumes, will benefit the second half. Both July and August have traded with positive cashflow and EBITDA.

Our Ethiopian business shows increased activity in the finished product side and has recovered some ground from earlier in the year, with an encouraging order bank to fulfil in the second half. We have been changing our approach to our traditional tanning business, however because the restrictions of COVID19 were applied much later in the year, there remains work to recalibrate our Ethiopian tanning business to profitability, and good progress has been made.

We are mindful of the continued threat of COVID19 restrictions to business operations. In response to the evolving uncertainty in March, a going concern statement was issued in our 2019 annual report. Given the performance this year, and following a recovery in performance as restrictions eased, the Directors do not believe there are any new circumstances that cast any further doubt on the Group's ability to continue as a going concern.

We currently see more opportunity than risk in the new normal that is emerging. We are encouraged by the cash generation since the half year and the corresponding reduction in net debt. We anticipate a more agile, cash generative business model, as we head towards the end of the year.

Consolidated Income Statement

 

 

 

 

 

 

 

Six months ended

 

Six months ended

 

Year ended

for the six months ended 30 June 2020

 

 

 

 

 

30/06/2020

 

30/06/2019

 

31/12/2019

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

 

 

Note

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

6,627

 

12,132

 

22,301

Cost of sales

 

 

 

 

 

 

(5,495)

 

(8,528)

 

(15,404)

Gross profit

 

 

 

 

 

 

1,132

 

3,604

 

6,897

 

 

 

 

 

 

 

 

 

 

 

 

Distribution costs

 

 

 

 

 

 

(882)

 

(1,119)

 

(2,264)

Currency (losses) / gains

 

 

 

 

 

 

(356)

 

9

 

92

Administrative expenses

 

 

 

 

 

 

(1,884)

 

(1,984)

 

(3,548)

(Loss)/profit before operations and finance costs

 

 

 

 

(1,990)

 

510

 

1,177

 

 

 

 

 

 

 

 

 

 

 

 

Finance costs

 

 

 

 

 

 

(262)

 

(286)

 

(598)

(Loss)/profit before taxation

 

 

 

 

 

 

(2,252)

 

224

 

579

 

 

 

 

 

 

 

 

 

 

 

 

Taxation

 

 

 

 

3

 

(114)

 

(53)

 

(173)

(Loss)/profit after taxation

 

 

 

 

 

 

(2,366)

 

171

 

406

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

2

 

 

 

 

 

 

Basic

 

 

 

 

 

 

(17.06p)

 

1.23p

 

2.93p

Diluted

 

 

 

 

 

 

(17.06p)

 

1.22p

 

2.90p

 

Consolidated Statement of Comprehensive Income

 

 

 

 

 

 

 

 

for the six months ended 30 June 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

Six months ended

 

Year ended

 

 

 

 

 

 

 

30/06/2020

 

30/06/2019

 

31/12/2019

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

 

 

 

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/profit for the period after taxation

 

 

 

 

 

 

(2,366)

 

171

 

406

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive (expense)/income

 

 

 

 

 

 

 

 

 

 

Revaluation of land and buildings

 

 

 

 

 

 

-

 

-

 

139

Revaluation of land and buildings - unrealised exchange (loss)

 

 

 

(58)

 

(47)

 

(406)

 

 

 

 

 

 

 

(58)

 

(47)

 

(267)

 

 

 

 

 

 

 

 

 

 

 

 

Unrealised exchange (loss) on translation of overseas subsidiaries

 

 

 

(96)

 

(164)

 

(931)

Fair value (losses) on foreign currency cash flow hedges

 

 

 

 

(481)

 

(19)

 

339

 

 

 

 

 

 

 

(577)

 

(183)

 

(592)

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive (loss)

 

 

 

 

 

 

(635)

 

(230)

 

(859)

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive (loss) for the period

 

 

 

 

(3,001)

 

(59)

 

(453)

 

Consolidated balance sheet

 

 

 

 

 

 

Six months ended

 

Six months ended

 

Year ended

 

 

 

 

 

Note

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

 

Interest bearing loans, borrowings and overdrafts

 

 

 

 

 

 

2,015

 

1,781

 

376

Net assets

 

 

 

 

 

 

14,558

 

17,864

 

17,520

 

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

 

 

 

 

 

6,944

 

6,944

 

6,944

Share premium

 

 

 

 

 

 

2,984

 

2,984

 

2,984

Capital reserve

 

 

 

 

 

 

6,475

 

6,475

 

6,475

Shares held by ESOP

 

 

 

 

 

 

(495)

 

(495)

 

(495)

Share based payment reserve

 

 

 

 

 

 

334

 

245

 

295

Cash flow hedge reserve

 

 

 

 

 

 

(194)

 

(71)

 

287

Translation reserve

 

 

 

 

 

 

(4,158)

 

(3,295)

 

(4,062)

Revaluation reserve

 

 

 

 

 

 

1,108

 

1,386

 

1,166

Retained earnings

 

 

 

 

 

 

1,560

 

3,691

 

3,926

Total equity

 

 

 

 

 

 

14,558

 

17,864

 

17,520

 

 

 

Consolidated Statement of Changes in Equity

 

 

 

 

 

 

 

 

for the six months ended 30 June 2020

 

 

 

 

 

 

 

 

 

 

Note

Share capital

Share premium

Capital Reserve

Shares held by ESOP

Share based payment reserve

Cash flow hedge reserve

Translation reserve

Revaluation reserve

Retained Earnings

Total Equity

 

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

 

 

As at 01/01/2019

6

6,944

2,984

6,475

(495)

203

(52)

(3,131)

1,433

3,520

17,881

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income/(loss) for the period:

Profit for the period after taxation

 

-

-

-

-

-

-

-

-

171

171

Other comprehensive income/(loss):

Unrealised exchange gain/(loss) on translation of foreign subsidiaries

 

-

-

-

-

-

-

(164)

(47)

-

(211)

Fair value losses on foreign currency cash flow hedges

 

-

-

-

-

-

(19)

-

-

-

(19)

Total other comprehensive income/(loss)

 

-

-

-

-

-

(19)

(164)

(47)

-

(230)

Total comprehensive income/(loss) for the year

 

-

-

-

-

-

(19)

(164)

(47)

171

(59)

Share-based payment expense

 

-

-

-

-

42

-

-

-

-

42

As at 30 June 2019

 

6,944

2,984

6,475

(495)

245

(71)

(3,295)

1,386

3,691

17,864

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income/(loss) for the period:

Profit for the period after taxation

 

-

-

-

-

-

-

-

-

235

235

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income/(loss):

 

 

 

 

 

 

 

 

 

 

 

Gain on the revaluation of buildings

 

-

-

-

-

-

-

-

139

-

139

Unrealised exchange gain/(loss) on translation of foreign subsidiaries

 

-

-

-

-

-

-

(767)

(359)

-

(1,126)

Fair value losses on foreign currency cash flow hedges

 

-

-

-

-

-

358

-

-

-

358

Total other comprehensive income/(loss)

 

-

-

-

-

-

358

(767)

(220)

-

(629)

Total comprehensive (loss) for the year

 

-

-

-

-

-

358

(767)

(220)

235

(394)

Share-based payment expense

 

-

-

-

-

50

-

-

-

-

50

 

 

 

 

 

 

 

 

 

 

 

 

As at 31 December 2019

 

6,944

2,984

6,475

(495)

295

287

(4,062)

1,166

3,926

17,520

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income/(loss) for the year:

Loss for the period after taxation

 

-

-

-

-

-

-

-

-

(2,366)

(2,366)

Other comprehensive income/(loss):

 

 

 

 

 

 

 

 

 

 

 

Gain on the revaluation of buildings

 

-

-

-

-

-

-

-

-

-

-

Unrealised exchange gain/(loss) on translation of foreign subsidiaries

 

-

-

-

-

-

-

(96)

(58)

-

(154)

Fair value losses on foreign currency cash flow hedges

 

-

-

-

-

-

(481)

-

-

-

(481)

Total other comprehensive income/(loss)

 

-

-

-

-

-

(481)

(96)

(58)

-

(635)

Total comprehensive income/(loss) for the period

 

-

-

-

-

-

(481)

(96)

(58)

(2,366)

(3,001)

Share-based payment expense

 

-

-

-

-

39

-

-

-

-

39

As at 30 June 2020

 

6,944

2,984

6,475

(495)

334

(194)

(4,158)

1,108

1,560

14,558

 

 

Statement of cashflows

 

 

 

 

 

 

Six months ended

 

Six months ended

 

Year ended

for the period ended 30 June 2020

 

 

 

 

 

30/06/2020

 

30/06/2019

 

31/12/2019

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

 

 

Note

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

Cash (used in)/generated from operations

 

 

 

5

 

(558)

 

(814)

 

(492)

Tax (paid)

 

 

 

 

 

 

(154)

 

(350)

 

(466)

Interest (paid)

 

 

 

 

 

 

(238)

 

(254)

 

(566)

Net cash (used in) / generated from operating activities

 

 

 

(950)

 

(1,418)

 

(1,524)

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

 

 

 

(141)

 

(491)

 

(635)

Purchases of intangible assets

 

 

 

 

 

 

-

 

-

 

(30)

Net cash (used) in investing activities

 

 

 

 

 

(141)

 

(491)

 

(665)

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

Proceeds from borrowings

 

 

 

 

 

 

1,750

 

809

 

804

Repayment of bank loans

 

 

 

 

 

 

(1,170)

 

(472)

 

(1,061)

New finance lease obligations

 

 

 

 

 

 

-

 

200

 

200

Repayment of obligations under finance leases

 

 

 

 

(65)

 

(90)

 

(171)

Net cash generated / (used) in financing activities

 

 

 

 

515

 

447

 

(228)

(Decrease) in cash and cash equivalents

 

 

 

 

 

(576)

 

(1,462)

 

(2,417)

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

 

 

 

(6,131)

 

(3,695)

 

(3,695)

Exchange gains on cash and cash equivalents

 

 

 

 

106

 

(3)

 

(19)

Cash and cash equivalents at end of period

 

 

 

 

(6,601)

 

(5,160)

 

(6,131)

 

 

 

 

Note 1 - Basis of preparation

The financial information set out in the interim statements for the six months ended 30 June 2020 and the comparative figures are unaudited and do not constitute statutory accounts as defined in section 434 of the Companies Act 2006. 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 International Financial Reporting Standards (IFRS).

 

The financial information for the full preceding year is extracted from the statutory accounts for the financial year ended 31 December 2019. 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.

 

These financial statements are presented in sterling, being the functional currency of the primary economic environment in which the Group operates.

 

 

Note 2 - Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

a) Basic earnings per share

 

 

 

 

 

 

Six months ended

 

Six months ended

 

Year ended

 

 

 

 

 

 

30/06/20

 

30/06/19

 

31/12/19

Earnings per share

 

 

 

 

 

 

Unaudited

 

Unaudited

 

Audited

Basic

 

 

 

 

 

(17.06p)

 

1.23p

 

2.93p

Weighted average number of ordinary shares in issue

 

 

 

 

 

 

  13,870,000

 

 13,870,000

 

  13,870,000

 

 

 

 

 

 

 

 

 

 

 

 

b) Diluted earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

Six  months ended

 

Year ended

 

 

 

 

 

 

30/06/20

 

30/06/19

 

31/12/19

Earnings per share

 

 

 

 

 

 

Unaudited

 

Unaudited

 

Audited

Diluted

 

 

 

 

 

(17.06p)

 

1.22p

 

2.89p

Weighted average number of ordinary shares in issue

 

 

 

 

 

 

  14,001,000

 

 14,025,000

 

  14,025,000

 

 

 

Note 3 - Taxation

 

 

 

 

 

 

Six months ended

 

Six  months ended

 

Year ended

 

 

 

 

 

 

 

30/06/20

 

30/06/19

 

31/12/19

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

 

 

 

 

 

 

 

 

 

Analysis of the charge in the period 

 

 

 

 

 

 

 

 

 

 

 

The charge based on the profit for the period comprises:

 

 

 

 

 

 

 

 

 

Corporation tax on profit for the year

 

 

 

 

 

 

-

 

-

 

200

Foreign tax on profit for the period

 

 

 

 

 

 

114

 

90

 

41

Foreign tax related to prior years

 

 

 

 

 

 

-

 

75

 

144

Total current tax

 

 

 

 

 

 

114

 

165

 

385

 

 

 

 

 

 

 

 

 

 

 

 

Deferred tax

 

 

 

 

 

 

 

 

 

 

 

Origination and reversal of temporary differences

 

 

 

 

 

 

-

 

(112)

 

(212)

Total deferred tax

 

 

 

 

 

 

-

 

(112)

 

(212)

 

 

 

 

 

 

 

 

 

 

 

 

Income tax charge

 

 

 

 

 

 

114

 

53

 

173

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note 4 - Deferred taxation

 

 

 

 

 

 

Six months ended

 

Six  months ended

 

Year ended

 

 

 

 

 

 

 

30/06/20

 

30/06/19

 

31/12/19

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

 

 

 

 

 

 

 

 

 

Deferred tax asset 

 

 

 

 

 

 

100

 

-

 

100

Deferred tax (liabilities)

 

 

 

 

 

 

(709)

 

(697)

 

(730)

Deferred tax (liabilities) - net

 

 

 

 

 

 

(609)

 

(697)

 

(630)

 

 

 

 

 

 

 

 

 

 

 

 

 

Note 5 - (Cash Used) / Generated in operations

 

 

 

 

 

Six months ended

 

Six months ended

 

Year ended

 

 

 

 

 

 

 

30/06/2020

 

30/06/2019

 

31/12/2019

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

 

 

 

 

£'000

 

£'000

 

£'000

(Loss)/ profit before taxation

 

 

 

 

 

 

(2,252)

 

224

 

579

Adjustments for:

 

 

 

 

 

 

 

 

 

 

 

Depreciation of property, plant and equipment

 

 

 

 

 

 

337

 

357

 

780

Amortisation of intangibles

 

 

 

 

 

 

38

 

26

 

63

Bank and other interest charges

 

 

 

 

 

 

262

 

286

 

596

Share based payment expense

 

 

 

 

 

 

39

 

42

 

92

Other non-cash items in Income Statement

 

 

 

 

 

 

319

 

165

 

(275)

Operating cash flows before movement in working capital

 

 

 

 

(1,257)

 

1,100

 

1,835

Movements in working capital (excluding exchange differences on consolidation):

 

 

 

 

 

 

-

Decrease / (Increase) in inventories

 

 

 

 

 

 

240

 

(581)

 

(1,980)

Reduction / (Increase) in receivables

 

 

 

 

 

 

784

 

(1,377)

 

(383)

(Reduction) / Increase in payables

 

 

 

 

 

 

(325)

 

44

 

36

Cash (used) in operations

 

 

 

 

 

 

(558)

 

(814)

 

(492)

 

 

Note 6 - Prior year restatement reported in 2019 accounts

 

Deferred tax, amounting to £0.648m, in relation to the temporary timing difference caused by the revaluation of buildings in Ethiopia, was previously not recognised from the net assets of the group at 1 January 2018. As a result, the opening reserves at 1 January 2018 have been restated along with the deferred tax provision. There has been no impact on the previously reported consolidated income statement. This was corrected in the 2019 Annual Report and there have been no subsequent prior year restatements.

 

 

Note 7 - Availability of interim report

 

 

 

 

 

 

 

 

 

 

 

 

The interim report will be available at the Groups website, at www.pittards.com, in accordance with AIM rule 20.

 

 

 

 

 

 

 

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