Profit warning at West Yorkshire textiles exporter

The Leeds Group, which imports and exports textiles across the globe, has warned that profits will be hit after a disappointing performance.

It said that the trading performance of its operating subsidiaries in the second half of the year has been below expectations, with a prolonged restructure hitting forecast.

The Leeds Group said that profit before tax before the full year is now expected to be lower than last year, despite foreign exchange gains.

The Bradford-based company said that it was constrained by a shortage of double folding capacity, starting a major programme of investment to cut out the middleman, bringing folding and warehousing functions inhouse to enlarged properties owned its Hemmers business.

The board said it is confident that the restructured business is well positioned to deliver future growth.

The 100 year-old group started off in textile manufacturing and processing, fabric printing and yarn dying. By 1996 it had manufacturing operations in the UK, Holland and Italy.

However a contraction in the European textile manufacturing industry due to the rise of the Far East as a manufacturing powerhouse led the group to focus on import and export rather than manufacturing.

Leeds Group’s trading operations are conducted by Hemmers-Itex Textil Import Export GmbH in Nordhorn, Germany and has a Chinese subsidiary based in Shanghai. Together the companies employ around 180 people.

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