Pittards beats inflation to increase profits

15th Sep 2011 12:15

Leather goods firm Pittards saw its share price lifted after it increased half-year profits and said it soon hoped to be able to offer a dividend.The firm, which makes 'technologically advanced leather' for goods such as Nike American football gloves, posted a £1.1m profit, up from £0.9m in the first six months of 2010.This came despite "severe price inflation on raw materials", the firm said.Pittards said sales of sheepskin and goat based products benefitted from early winter cold spells in UK and USA which led customers to restock pipelines. Demand for sports glove leathers was also strong while sales of hide based products were similarly robust with the military and services sector faring well alongside sport and casual footwear, it said."We continue to work with our legal advisors on restructuring our balance sheet to enable the payment of dividends in the future and we expect this restructuring to have taken place before year-end," the company said.It warned there was uncertainty about the strength of global demand in the coming months and there was continued inflationary pressures on raw materials. "However our order book remains strong, our relationships with key customers are good and our offshore presence enables us to manufacture in lower cost environments, all of which provide some resilience against adverse conditions," Pittard said.The company's shares rose 4% in morning trading.