Leather goods firm Pittards has warned that falling demand and political unrest in Ethiopia will result in a hit to its full-year performance.
(Belfast Telegraph) — The Somerset-based firm said a state of emergency in the African country has affected the company’s tannery in East Shewa, where some production has been lost.
The company said: “Levels have not yet returned to the levels pre-disruption. The effect has to some extent been mitigated by undertaking production in the UK but there will nevertheless be an impact on the results for the second half of the year.”
Pittards added that a “prolonged depressed demand for leather” has resulted in disappointing sales volumes in the last few months of the year, meaning that the overall performance for the full year is likely to be “lower than our expectations at the time of the half-year results”.
The firm said a new management team is now in place and further progress has been made in the second half to simplify the group and better position it for growth.