Quarterly Report Q1/09

Puffin Performance improved with a rise in Finished Objects from four to six projects from a year ago. These results are supported by the number of Knitted Metres which were up by 2330, a commendable increase of 67% compared with last year's first Quarter.

Outlook

We expect a continued rise in productivity for 2009. This will be reflected in an increased amount of Finished Objects (FOs). Volume risks such as multiple Works In Progress (WIPs), Hibernates (zzz) and Ughs will be partly offset by declining input material (Stash) and an extensive additional action program to increase efficiency (Queue Review). In addition, measures are being taken to significantly reduce net working stash (M&A, R&D).

We expect the 2nd quarter to be more difficult than the first as the production has moved onto summer materials such as cotton, silk, bamboo and other inelastic fibres.

In the longer term, particularly after completion of major projects with smaller gauge, we forecast increased productivity through own designs, new skills and positive attitude.

Strategic Development

With ongoing training and experience, the number of Ughs and zzz is expected to decline dramatically. Furthermore, the use of higher quality materials and the variation of such should ensure a continued flow of FOs throughout the year.

The first Quarter impressed with a very strong start in January, with a completion of 4 FOs. While February and March followed with only 1 FO each, a significant amount of time has been spent on efficiency measures, such as regular breaks, diversity of hobbies and research, especially for holidays.

The queue for 2009 has just undergone a major reconstruction for portfolio optimisation - a clear plan of action is expected at the end of April.

Research & Development

Major efforts have been made to improve the skills of the knitter, by trying new techniques for knitting over ends (which admittedly failed) and new lace patterns (which were subsequently frogged). Nevertheless, the experience has enriched the staff at Puffin HQ and no further time shall be wasted on such endeavors in future.

The Head of Knitting has started to knit her own hat patterns and has even taken detailed notes of such for future reference or possible publishing.

A major breakthrough can be reported in the research of button supplies in the London area. Less time can be spent on endless button hunts after creating a London Haberdashery Tour Map and purchasing pretty buttons when they are discovered.

Profit & Loss

Two skeins of Blue Sky Alpacas Sport Weight have been lost in transit since mid January. An emergence of said skeins is not expected in the near future. Neither do we expect a positive outcome of the dispute filed with Paypal.

On the other hand, two skeins of Jaeger Extra Fine Merino in charcoal have been successfully destashed and the proceeds reinvested in patterns.

Mergers & Acquisitions 

The promise of the additional BSA Sportweight saw an acquisition of BSA patterns, in particular the Ribbon Trim Cardigan by Sylvia Hager and the High Neck Cable by Kim Hamlin.

The sale of the Jaeger EFM resulted in a successful merger of 5 skeins in the USA to be knitted into a beautiful scarf. The patterns acquired instead are Vaila by Gudrun Johnston and Paper Dolls by Kate Davies as well as back issues of knitscene and Interweave Knits. Knitting of said patterns shall commence during 3Q/09.

The most significant acquisition during the first Quarter of 2009 is Breeze, the latest book by Kim Hargreaves. Frankie and Blithe are expected to be finished in Q2/09, with Frankie being on the needles as of 31 March 2009.

Yarnwise, we have acquired yellow yarn for Norah Gaughan's Jonna scarf and for contrast trims to merge an Ugh (Uptown Manhattan) into a new beautiful FO during the second half of 2009. Lana Grossa Linea Pura Organico has been instantly knitted up into Alpitude.

Forward Looking Statement - Conclusion 

A successful start for the new season brings renewed enthusiasm and confidence for SmashingPuffin. While sound productivity levels are destined to coincide with a higher level of setbacks, every project is a learning curve and promises many rewards.