http://www.belfasttelegraph.co.uk/business/news/ethiopia-unrest-and-depressed-demand-give-leather-firm-pittards-a-hiding-35311289.html
Ethiopia unrest and 'depressed demand' give leather firm Pittards a hiding
PUBLISHED 21/12/2016
Leather goods firm Pittards has warned that falling demand and political unrest in Ethiopia will result in a hit to its full-year performance.
The Somerset-based firm said a state of emergency in the African country has affected the company's tannery in East Shewa, where some production has been lost.
The company said: "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."
Pittards added that a "prolonged depressed demand for leather" has resulted in disappointing sales volumes in the last few months of the year, meaning that the overall performance for the full year is likely to be "lower than our expectations at the time of the half-year results".
The firm said a new management team is now in place and further progress has been made in the second half to simplify the group and better position it for growth.
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http://www.proactiveinvestors.co.uk/companies/news/170780/pittards-warns-on-its-2016-performance-due-to-disruption-at-its-tannery-in-ethiopia-170780.html
Pittards warns on its 2016 performance due to disruption at its tannery in Ethiopia
21 Dec 2016
In October, the company reported that following heightened social unrest in Ethiopia, the Ethiopian Prime Minister had declared a state of emergency for six months.
Disruption at its tannery in Ethiopia has led leather goods producer Pittards plc (LON:PTD) to warn that its 2016 performance is likely to be lower than its previous expectations.
In 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 Pittard's Ethiopian tannery is located.
In a further statement released today, Pittards noted that travel restrictions have now been lifted by the Foreign & Commonwealth Office, although the state of emergency is still in place.
In October, Pittards said it did not expect any significant disruption to production from the situation.
However, the company today revealed that operations at its East Shewa tannery did actually suffer disruption, as some production was lost, and that production has not yet returned to earlier levels.
It said the lost production to some extent has been mitigated by undertaking production in the UK, but it will still hit results in the second half of the year.
The AIM-listed group said: “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.”
But, Pittards, added: “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.”
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Business
Market Report: Pittards is handbagged by Ethiopian troubles
JAMIE NIMMO
http://www.standard.co.uk/business/market-report-pittards-is-handbagged-by-ethiopian-troubles-a3425961.html
Received on Wed Dec 21 2016 - 13:47:48 EST