Raw material costs concern Pittards

17th Mar 2011 07:44

Pittards, which makes leather for goods such as Nike American football gloves and Timex watch straps, saw profits edge up in 2010 as revenues soared in line with global economic recovery, but warned that high raw material prices will make maintaining margins a challenge.Pre-tax profits on continuing operations rose to £3.3m from £800,000 on revenues that jumped to £36.1m from £24.6m. Pittards, which has tannery operations in Ethiopia and a head office and shop in Yeovil, said the surge in revenues "reflects a major recovery in volumes from key customers, partly due to the refilling of the pipelines they had emptied in late 2008/early 2009 during the global recession, and partly in response to improved consumer demand."The consumer products section is developing well with revenue from finished products growing steadily, Pittards said."As we enter 2011 our orderbook remains strong and our customers remain confident about consumer demand but the current inflationary climate is affecting raw material prices therefore maintaining margins will be a challenge," the company said. "We will continue to make maximum use of our strong brand and market knowledge and experience during this growth phase in our development."