Half-year profit for Leeds Group

LEEDS Group today posted an interim profit but described the economic environment as “challenging”.

The fabric importer saw profit after tax increase to £481,000 in the six months to November 30, up from £124,000 over the same period last year.

Chairman Kathryn Davenport said: “The economic environment remains challenging, despite the recent fall in the cost of cotton goods. There is no doubt that our customers are buying less fabric than usual this year, although we see no evidence that we are losing significant volumes of business to competitors.

“It remains to be seen whether order levels pick up as the year progresses.”

Revenue at Hemmers Europe, the group’s German-based operating subsidiary, was £13.9m.  Sales volumes were 20% down on last year as a result of generally depressed levels of consumer spending and the high price of cotton goods.

Total metres sold in the period by ChinohTex, the Chinese subsidiary of Hemmers, increased by 34% over the corresponding period last year. Leeds Group said profitability at ChinohTex remains “modest”. 

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