Leeds textiles exporter “materially impacted” by sterling decline
The Leeds Group, which trades in textiles, has said the weakness of the sterling has had a “material impact” on the group’s results, experiencing gains because of its global subsidiaries.
The exporter said sales increased 13.2% for the year to May 2017 to £41.1m, which is said is £5.2m higher that it would have been had the results of its overseas subsidiaries been translated and last year’s rates.
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.
Pre-tax profit in the current year reached £1.0m, compared to £1.3m last year due to restructuring and additional cost base.
Earnings per Leeds Group share reached 4.1p, up from 3.8p last year, but in view of the recent investments, the directors did not propose a dividend.
The company invested in warehousing and equipment to the tune of £2.3m and made capital expansions last year.
It said it had now established the infrastructure required to achieve growth and efficiencies in the forthcoming year.
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.
