Despite the unsettled world outlook, UK leathermaker Pittards still managed to post a 16% increase in profits for the six months ended June 31 2003.

After a massive 72% hike in pension costs to £1.2 million ($1.9 million) [due mainly to a three-yearly actuarial valuation], operating profit came in at £1.1m.  Sales climbed 20% to £43.5 million, with a 26% rise been seen in export sales which  accounted for a record 86% of turnover.

“I am pleased to report that we have continued to make progress in the first half of 2003,” commented Chairman Robert Tomkinson.  This has been a period of generally unsettled economic and political conditions, overshadowed by the conflict in Iraq.  Against this background, we have achieved a 20% increase in our sales turnover, and a 10% increase in our profit before tax.  However, whilst we have been quite busy in the first half, many in our industry have been operating well below capacity and this is putting great pressure on volumes and prices.  In the prevailing fragile economic conditions and with the substantial increase in our pension costs, it is unlikely that we will be able to match in the second half, the progress we have made in the first."    

Highpoints of the results were the 8% increase in sales volume at the company’s Glove Leather Division and increased sales of its high performance leathers for sport, military and service gloves, the result of new product introductions and customer gains.

In announcing the results, the board  declared an interim dividend of 1.0p per share (the same as the year before) which is almost twice covered by earnings. 

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