The chairman of the UK’s Pittards PLC, R. C Tomkinson announced last week that the outlook for the company is far from positive. Referring to a statement he made in September – in which he talked of more positive sales prospects in the second half of the year - Mr Tomlinson conceded that the true situation is, in fact, one of ever decreasing sales.
He stated that the international leather market has shown no signs of a recovery, and due to this Pittards’ sales are likely to be as low in the second half of 2004 as they were in the first half.
As a consequence, the company has made further reductions in costs through reducing natural wastage and redundancies. The company’s fellmongery, based in Langholm, Scotland - which employed 60 people – was finally closed on October, 8, 2004 at a cost of around £1 million ($1.85 million). The plant and equipment have since been sold, but the division’s trading loss for the year is expected to be approximately £0.75 million. A buyer is also being sought for the division’s other site at Kinghorn.
Following the company’s actions to reduce operating costs, Mr Tomlinson said it is unlikely that the continuing activities of the company will operate profitably in the second half of 2004.
