Pittards warns on tariffs after fall in UK hide orders

Pittards warned new global tariffs could affect its business as the leather producer reported falling UK hide manufacturing orders.

Pre-tax profit for the six months to the end of June rose to £96m from £85m as revenue rose 2% to £14.5, Pittards said.

The company, which relies heavily on exports, said profit was affected by unfavourable foreign exchange conditions and spending to update facilities and support new business. Orders for hide manufacturing at Pittards’ UK facilities fell towards the end of the first half as customers responded to geopolitical and market volatility.

Chairman Stephen Yapp said: “As a large proportion of our production is exported, the introduction of tariff barriers globally is likely to create uncertainty which may have an effect on our core business in the second half.” He said first-half trading was satisfactory.

Pittards shares fell 7% to 78p at 09:27 BST, their equal-lowest level since summer 2016.

Brexit and a mounting trade war between the US and China have raised the prospect of extra tariffs on goods traded around the world. Yapp said despite this threat Pittards remained confident about its prospects.

The company produces leather mainly for upmarket gloves, bags and items made by other companies but it also makes its own branded goods. The company is based in Yeovil, Somerset, but its biggest site is in Ethiopia.

Net debt rose to £9.8m from £8m six months earlier but the company said this was mainly caused by working capital timing differences that would ease by the end of the year.