Trading Update

Pittards PLC
03 November 2004



                                Trading Update

In my statement accompanying our interim results on 2nd September 2004, I
commented on our prospects as follows:

'The global economic climate continues to be unstable, and exchange rates to be
volatile.  Sales prospects for the second half are better than for the first
although demand from the international market for leather remains depressed.
With the benefit of ongoing cost savings and efficiency improvements, we expect
our continuing activities to operate profitably in the second half of the year.
There will be exceptional costs in the second half associated with our
withdrawal from the Raw Materials Division which could be substantial.  Together
with the loss reported for the first half, this will result in a loss before tax
for the Group for the year as a whole'.

In the two months since I made those comments, there has been no sign of a
recovery in the international market for leather.  The market remains depressed
and thus far, our sales in the second half have been no better than in the
first.  As a consequence, we have made further reductions in our payroll costs,
through natural wastage and redundancies. These carry an upfront cost to our
2004 performance, but reduce our operating costs going forward.  It is now
unlikely that our continuing activities will operate profitably in the second
half of the year.

The Raw Materials Division ceased production on 8th October.  Good progress is
being made with the liquidation of the working capital invested in that
business.  We have found a buyer for the factory in Langholm and the plant and
equipment and we are now in the process of negotiating contracts.  The costs
associated with the closure will be of the order of £1m of which £0.6m relates
to redundancy costs.  The Division's trading loss for the year is expected to be
approximately £0.75m.

Bids are currently being invited for the Division's other site at Kinghorn.  The
25 acre site has a book value of £0.5m.  Approximately 10 acres of the site has
been zoned for residential development in the Kirkcaldy Area Local Plan.

Dividend policy for the year as a whole will be determined in the light of the
trading performance in the second half of the year, and the progress with the
disposal of the Kinghorn site.



R C Tomkinson
Chairman

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