Interim Results

Pittards PLC
6 September 2001


                                 PITTARDS PLC

                       ANNOUNCEMENT OF INTERIM RESULTS


Pittards plc produces technically advanced leather for many of the world's
leading brands of gloves, shoes, luxury leathergoods and sports equipment.


6 September 2001

Interim Results for the six months ended 30 June 2001

Summary

                                     Six months ended      Six months ended
                                       30 June 2001          30 June 2000

Turnover                                  £45.1m                £40.5m
Percentage export                           79%                   75%
Profit before taxation                     £0.1m                 £1.7m
Ordinary dividend - interim                0.75p                 1.1p
Net assets per share                       105p                  104p
Gearing                                     27%                   22%


*    Sales up by 11%

*    Export sales up by 17% to a record 79% of turnover

*    Exceptional raw material supply issues following BSE in Europe and
     FMD in UK

*    Profits down substantially, from £1.7m to £0.1m


Interim dividend down, from 1.1p to 0.75p.         
*


Robert Tomkinson, Chairman of Pittards, commented:


'We continue to make strenuous and successful efforts to broaden our customer
base and reduce our dependence on any single market segment.  Although we are
experiencing weakening demand from the sports sector, orders for our dress
glove, footwear and luxury leathergoods leathers from predominantly European
customers are holding up reasonably well.  If this continues, and the
exceptional factors which destabilised our hide and skin supplies in the first
half are finally resolved, we expect to return to more favourable levels of
trading.'



For further information, please contact:


John Pittard - Group Managing Director
John Buckley - Group Financial Director
Pittards plc                                Tel: [phone]



Chairman's Interim Statement


For most of the first half of 2001, demand for our products was strong.
Sales turnover was £45.1m, 11% ahead of the first six months of 2000, and
would have been higher but for hide and skin supply constraints.   Exports
were a record 79% of turnover, despite the relative strength of sterling.
However, as predicted in my trading update in April, profits are running at a
significantly lower level than last year.  Profit before tax was £0.079m, down
from £1.695m in the first half of last year, primarily as a result of the
exceptional raw material issues with which we have had to contend over the
last twelve months or so.


In my statement dated 6 March 2001 in the Annual Report and Accounts for 2000
I referred to the impact on raw material supplies and prices of concerns over
BSE in Europe and of the measures taken to bring foot and mouth disease (FMD)
under control.  On 11 April, I warned of the significant increases in costs
that the Company was experiencing as a result of the reduced availability of
UK hides and sheepskins and of importing raw materials from non-UK sources.
After taking account of these raw material issues, Group operating profit was
£0.350m (2000 - £1.921m).   Interest costs were £0.271m, up 20% on the same
period last year, as higher raw material prices forced up the investment in
working capital.   After a nil tax charge and the preference dividend, there
was a loss of 0.3p per ordinary share (2000 - earnings per share 7.2p).


Turnover in the Glove Leather Division was virtually unchanged from the first
half of last year.   However, the mix of business this year has shifted
towards dress glove leather where the emphasis is on aesthetics rather than
performance. Sales of technically advanced leather to the sports and service
sectors were down compared to last year as economic activity slowed in some of
our major markets, and some customers began to destock.  Sales were also held
back by the raw material supply difficulties we experienced during the period.


The Division's raw material costs were substantially higher than in the
previous year.   The disruption to the balance of global supplies of hides and
skins as a result of BSE in Europe and the FMD outbreak in the UK caused
buyers to seek supplies from non-traditional sources.   There has been
unprecedented interest - particularly from Asian garment leather tanners - in
hairsheepskins, the principal raw material of the Glove Leather Division.
This has led to a steep rise in price.   Some suppliers were unable or
reluctant to fulfil their contractual obligations, causing interruptions to
supplies, and adding to our costs.  In addition, the full financial effects of
escalating raw material costs were not recognised as early as they should have
been, and some of the corrective action was delayed. As a result, the Division
merely broke even in the first six months. The Division's financial team has
been strengthened and the management information issues have been addressed.
In the second half a more stable raw material environment should help to
counter generally weaker demand from our markets.


The Shoe & Leathergoods Division has performed well in very difficult
circumstances.   Sales turnover was 16% higher than for the first half of last
year on volumes that were 5% higher.   Strong demand, particularly from
European footwear and luxury leathergoods customers, more than compensated for
the reduced requirements of the predominantly US based sports equipment
brands.  The overall increase in sales was achieved in spite of the huge
disruption to the supply of hides caused by the outbreak of FMD in February.
In order to meet the needs of its customers the Division had to supplement the
reduced supply of UK hides by importing more from the US and northern Europe
all at significantly increased cost.   Nevertheless, the Division made a
modest profit in the period.


Subject to the supply of hides returning to normality, (of which there is
still some doubt), the outlook for the second half looks marginally better.
The Division has an order book at prices that reflect the current cost of
hides.



The Raw Materials Division is the smallest of our three divisions.   Sales
turnover to June was 19% up, and the small operating profit was similar to
last year. Sheepskin supply difficulties in the first half were tempered by
some of the measures taken to control FMD, such as restrictions on the export
of live sheep, and of sheepskins.   However the second half will be more
problematic as a result of the contiguous cull and other FMD measures taken in
the spring and summer.  Current supplies are 40% below previous years, and may
take some time to return to normal.


Bank borrowings at 30 June were £7.1m, up from £5.6m at the same stage last
year, and represented 27% of shareholders' funds.   The increase in borrowings
was due mainly to the impact of higher raw material costs on working capital.
Net assets were £26m, equivalent to 105p per ordinary share (30 June 2000 -
104p).


The general economic outlook - and that for the US in particular - prompts us
to be extremely cautious about the prospects for the rest of the year.  The
FMD outbreak is still not fully under control, with over 200 new cases
reported since the end of June, and a recent resurgence in Northumberland.  In
view of these uncertainties but being mindful of the importance of dividends
to many of our investors, your Board has declared a reduced interim dividend
of 0.75p (2000 - 1.1p) per ordinary share.  This will be paid on 5 November
2001 to shareholders on the register on 5 October 2001 (ex dividend date 3
October 2001).  A decision concerning the level of final dividend will be made
in the light of the second half results and the outlook at the relevant time.


We continue to make strenuous and successful efforts to broaden our customer
base and reduce our dependence on any single market segment.  Although we are
experiencing weakening demand from the sports sector, orders for our dress
glove, footwear and luxury leathergoods leathers from predominantly European
customers are holding up reasonably well.  If this continues, and the
exceptional factors which destabilised our hide and skin supplies in the first
half are finally resolved, we expect to return to more favourable levels of
trading.


Robert C Tomkinson
Chairman

6 September 2001


CONSOLIDATED PROFIT AND LOSS ACCOUNT (UNAUDITED)
for the six months ended 30 June 2001


                                                           Six            Six
     Year                                               months         months
    ended                                                ended          ended
       31                                              30 June        30 June
     2000                                                 2001           2000
    £'000                                 Note           £'000          £'000

   81,195       Turnover                                45,096         40,538

    3,493       Operating profit                           350          1,921

                Profit on ordinary
    3,493       activities before                          350          1,921
                interest

    (490)       Net interest payable                     (271)          (226)

                Profit on ordinary
    3,003       activities before                           79          1,695
                taxation

     (20)       Taxation                                    -              -

                Profit on ordinary
    2,983       activities after taxation                   79          1,695

                (Loss)earnings per share    1
     12.7        - basic                                 (0.3)            7.2
     12.6        - diluted                               (0.3)            7.2

                Dividends
      284       Preference                                 142            143
      829       Ordinary                                   164            240
    1,113                                                  306            383

    1,870       Retained (loss) profit                   (227)          1,312


There were no discontinued activities in 2001 or 2000. The results relate
entirely to continuing operations

There are no recognised gains and losses other than those reflected in the
Profit and Loss Account


CONSOLIDATED BALANCE SHEET (UNAUDITED)
as at 30 June 2001


         
       31
 December                                                 30 June       30 June
     2000                                                    2001          2000
    £'000                                                   £'000         £'000

   17,529       Fixed assets                               17,262        17,648

                Current assets
   13,661       Stocks                                     14,153        12,310
   11,086       Debtors                                    12,368        10,654
      196       Investments                                   272           247
       32       Cash at bank & in hand                         27            24
   24,975                                                  26,820        23,235

                Creditors - amounts falling
                due within one year
  (5,866)       Bank loans & overdrafts                   (7,143)       (5,550)
  (6,283)       Trade creditors                           (6,861)       (5,388)
  (4,045)       Other creditors                           (3,995)       (4,194)
 (16,194)                                                 (17,999)      (15,132)


    8,781       Net current assets                          8,821         8,103

   26,310       Total assets less current                  26,083        25,751
                liabilities


                Capital & reserves
    8,441       Called up share capital                     8,441         8,440
   17,848       Reserves                                   17,621        17,290
   26,289       Shareholders' funds                        26,062        25,730
       21       Minority interest                              21            21
   26,310                                                  26,083        25,751



SUMMARY CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
for the six months ended 30 June 2001


                                                               
                                                               Six          Six
    Year                                                    months       months 
   ended                                                     ended        ended
      31                                                        30           30
December                                                      June         June
    2000                                                      2001         2000
   £'000                                        Note         £'000        £'000

   2,195       Net cash inflow from operating     2            302        1,254
               activities

   (768)       Returns on investments and                    (416)        (367)
               servicing of finance

      -        Taxation                                         -            -

               Capital expenditure and
               financial investment
 (1,217)       Purchase of tangible fixed                    (485)        (592)
               assets
   (285)       Purchase of shares for ESOP                    (94)        (285)
     16        Sale of tangible fixed assets                    -            -
 (1,486)       Net cash outflow from capital                 (579)        (877)
               expenditure and financial
               investment

   (807)       Equity dividends paid                         (589)        (567)

   (866)                                                    (1,282)        (557)

               Financing
     (9)       Repurchase of preference shares                  -           (9)
      1        Issue of new shares                              -            -
     (8)       Net cash outflow from financing                  -           (9)

   (874)       Decrease in cash                             (1,282)        (566)



Reconciliation of net cash flow to movement in net debt


 (874)       Decrease in cash                               (1,282)        (566)
 (874)       Movement in net debt resulting                 (1,282)        (566)
             from cash flows
(4,960)       Net debt at beginning of period                (5,834)     (4,960)
(5,834)       Net debt at end of period                      (7,116)     (5,526)



NOTES:

                                                            Six             Six
                                                         months          months
                                                          ended           ended
                                                        30 June         30 June
                                                           2001            2000
1.    (Loss) earnings per ordinary share                  £'000           £'000

      Profit on ordinary activities after                    79           1,695
      taxation
      Preference dividends                                (142)           (143)
      (Loss) earnings                                      (63)           1,552

      Weighted average number of ordinary                '000's          '000's
      shares in issue
      (excluding the shares owned by the
      Pittards employee share ownership trust)

      Basic                                              20,992          21,526
      Dilutive potential ordinary shares:
                  Employee share options                    173              71
                                                         21,165          21,597



2.    Reconciliation of operating profit to net cash flows from operating
      activities:

                                                            
                                                           
    Year                                                    Six             Six
   ended                                                 months          months
      31                                                  ended           ended
December                                                30 June         30 June
    2000                                                   2001            2000
   £'000                                                  £'000           £'000
                                                                           

  3,493        Operating profit                             350           1,921
  1,538        Depreciation charges                         752             794
    103        Amortisation of shares under RSP              18              52
    (16)       Profit on sale of tangible fixed               -               -
               assets
   (831)       (Increase) decrease in stocks              (492)             520
 (3,059)       Increase in debtors                      (1,282)         (2,627)
    967        Increase in creditors                        956             594


   2,195       Net cash inflow from operating               302           1,254
               activities


3.    The financial information contained in this interim statement does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985.  The financial information for the full preceding year is based on the
statutory accounts for the financial year ended 31 December 2000.  Those
accounts, upon which the auditors issued an unqualified opinion, have been
delivered to the Registrar of Companies.


4.    The interim financial information has been prepared on the basis of
accounting policies set out in the Group's statutory accounts for the year
ended 31 December 2000.


5.    The report, containing the interim financial information, is to be sent
direct to shareholders.  Copies of the report are available to the public from
the registered office of Pittards plc.  The address of the registered office
is: Pittards plc, Sherborne Road, Yeovil, Somerset, BA21 5BA.