Member Article

Pretax profit hits £1 million at Leeds Group

Leeds Group has reported pretax profit of £1.03 million for the six months ending 30th November 2014, compared to £975k for the same period in 2013.

The group has also seen a small increase in revenue, reporting £18.6 million for the six months period compared to £18.5 for the same period in the previous year.

Revenue at Leeds Groups’ german subsidiary, Hemmers Europe, increased by 7.4% to €20.75 million.

Sales volume increased by 8.2% to 6.9 million metres. The increase in overheads was restricted to 3.5% and consequently pre-tax profit increased by 10.1% to €1.06

Leeds Group chairman, Jan G Holstrom said: “These reported sales and profit figures appear very similar to those of last year, but in reality the translation effect of a significantly weaker Euro disguises the very real progress that both of our overseas trading companies have made.

“As well as diminishing the translated sterling values of sales and profit, the weakness of the Euro gave rise to the negative translation difference on opening net assets of £169,000 disclosed in other comprehensive income.

“The Directors are currently of the view that shareholder value is best promoted by investing in the current business and by seeking new investment opportunities which increase earnings per share.

“In order to maximise funds available for this purpose and to reflect the investment in KMR during the current year, the Board does not propose an interim dividend.

“Sales in the seasonally quiet month of December were in line with the expectations of the Board. We enter the traditionally busy first quarter of the New Year with order books significantly fuller than they were at this time last year.

“Nevertheless the seasonal nature of our businesses has led in recent years to first half profits running somewhat ahead of those of the second half.”

This was posted in Bdaily's Members' News section by Ellen Forster .