This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

29 June 2023

PITTARDS PLC

("Pittards", "Company" or "the Group")

 Update re financial position

Timing of final results

Suspension of trading

Pittards plc (AIM : PTD), the specialist producer of technically advanced leather and luxury leather goods for retailers, manufacturers and distributors, provides an update to its financial position and the timing of the publication of its audited results for the year ended 31 December 2022.

Update re Financial Position

On 24 March 2023, the Company announced a fundraise, that was approved by shareholders at a general meeting held on 11 April 2023, to enable the Company to manage its working capital until at least the end of May 2023, during which time it expected to agree new bank facilities with either Lloyds Bank (its existing lender) or an alternative provider. In addition, it was indicated that, depending on the size and structure of the new facilities further equity and/or debt may also be required to provide some funding for growth and fully return the Company's creditors to a normal profile. The Directors estimated that this additional requirement could have been up to £3 million.

The Company is pleased to report that it has agreed indicative terms for the restructuring of its existing debt facilities for its UK business with Lloyds Bank, for approximately £10.1 million. The principal change being the restructuring of the Company's existing overdraft facilities into a two year term loan of £7.7 million with the other facilities remaining largely unchanged. The proposed new debt facilities are conditional, inter alia, on the Company completing an equity fundraise of £1.5 million.

Plans for the equity raise are underway and include discussions with a cornerstone trade investor. Shareholders should note there can be no certainty of the outcome of these discussions. Accordingly, in light of the Company's reducing cash position, should the Company be unable to complete the £1.5 million fundraising, the prospects for recovery of value, if any, by shareholders would be uncertain.

In order to facilitate the conclusion of an equity raise Lloyds Bank has agreed to extend the Company's existing banking facilities until 31 July 2023. In the meantime Company continues to operate at or around the ceiling of its bank facilities.

Further announcements will be made as and when appropriate.

Timing of Final Results/ Suspension of Trading

The audit of the Company's accounts for the year ended 31 December 2022 will not be completed by 30 June 2023 as required under AIM Rule 19 of the AIM Rules for Companies. As a result, the Company's shares will be suspended with effect from 7.30 a.m. on 3 July 2023 until such time as the audited results are published and sent to its shareholders. It is currently anticipated that the results will be published in the week commencing 10 July 2023.

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