Leather manufacturer Pittards, which produces for Marks & Spencer, New Balance and UK glovemaker Dents, has published a second profit warning in three months as international growth slows.
Founded in 1826, 90% of the Yeovil-based tannery’s leather is exported, and the economic slowdown in China and Russia has hit profits at the firm.
The company said it expected to make a reasonable profit for the year to December 31 but that the figure would be “materially below” forecasts. The company did not give figures for market expectations.
Chairman Stephen Boyd said: “Whilst we are disappointed with the slowdown in the current macro environment, Pittards has achieved a great deal in 2015. The continued strength of the US dollar, in which over 70% of Pittards’ products are invoiced, together with lower raw material prices, are now beginning to be reflected in better margins, and the board considers the company well placed in the medium term to benefit from a recovery in volumes as the gradual improvement in economic activity in advanced economies gains more traction.”