Leeds Group looks at Chinese expansion

LEEDS Group has said that its textile business has moved into profit and it is looking to expand in China but market conditions still remain “challenging”.

The company told shareholders at its AGM that revenues at the Hemmers-Itex operation in Germany continue to be in line with management expectations with margins improving and the business now trading profitably.

Chairman Ewen Wigley said that the group’s actions taken to control costs and improve margins at the German fabric importer and distributor had seen it move into profit in the last three months of 2009.

“I am also pleased to report that the first full year of trading at the Chinese subsidiary of Hemmers-Itex has been successful, and it now contributes to the group profitability. We continue to explore ways to expand the business in China. 

“The economic climate remains challenging for both Hemmers-Itex and its clients, and we will continue to monitor the business closely,” added Mr Wigley.