Member Article

Leeds Group reports pretax profits on the up on the back of Chinese and German operations

Leeds Group plc, who are engaged in textile processing and dyeing, has reported profit before tax increased to £1.6 million

This is and increase of just under £200k on last year’s £1.44 million pretax profit (before an impairment charge of £745k against available-for-sale investments).

Sales volumes increased to 14.5 million metres (2013: 13.2 million metres) and group revenue in the year was £34.2 million an increase of 9.9% on last year.

The firms principal country of operation is Germany and it also has manufacturing operations in UK, Holland and Italy.

In response to contracting European markets, Leeds Group ceased all manufacturing activities and focused on the import and sale throughout the world of fabric imported chiefly from the Far East.

Leeds Group’s trading operations are conducted by Hemmers-Itex Textil Import Export GmbH. Hemmers is based in Nordhorn, Germany and has a Chinese subsidiary based in Shanghai.

Together these companies employ some 135 people and achieved fabric sales of 13.2 million linear metres in the year ended 31 May 2013.

Hemmers Europe sales increased to £31.3 million (2013: £28.2 million) and pre-tax profit increased to £1.4 million (2013: £1.05 million).

ChinohTex external sales were slightly down at £2.8 million (2013: £2,931,000) and pre-tax profit reduced to £129,000 (2013: £261,000).

Chairman of the firm Kathryn Davenport, who additionally announced that she was stepping down as chair in the statement said: “In the current year we have identified potential growth opportunities for Hemmers, and shall be increasing our focus on the European garment manufacturers and the market for accessories to be sold by our customers in retail outlets.

“We also intend in the year to provide customers of ChinohTex the opportunity to buy on-line.

“Sales in the first two months of the current financial year have been in line with the expectations of the Board.

“I have decided not to seek re-appointment at the next Annual General Meeting of the Company.

“My board colleagues, with the help of the Company’s Nominated Adviser, are actively seeking an individual to join the board as an independent Non-executive director and a further announcement will be made in due course when such an appointment is made.”

This was posted in Bdaily's Members' News section by Clare Burnett .