Leeds on look-out for investment opportunities

LEEDS Group today said it was on the look-out for further acquisitions and investments in order to maximise the long-term value of the business.

The Yorkshire group’s chairman, Ewen Wigley, confirmed the strategy as the company posted results for the six months to March 31.

Pre-tax profit was £361,000 over the six months, down from £393,000 over the corresponding period the previous year. Turnover increased from £8.35m to £11.3m.

Earlier this month, Leeds Group, which was originally established as a textile business, bought a stake in cashmere business Dawson International.

The 28.76% stake was acquired for £971,250.

Leeds Group has also invested in one million shares of European Equity Tranche Income.

Mr Wigley said today: “These investments are consistent with the intention of the board to maximise the long-term value of the group, and we continue to look for other acquisitions or investments that will strengthen the group and benefit shareholders.”

Mr Wigley said Leeds Group’s Hemmers-Itex business, a German-based factory manufacturing textiles, had recruited staff over the period to help grow sales and take advantage of the collapse of a competitor.

Since Leeds Group sold off its equipment leasing business three years, it has focused on a relatively small textile operation, selling fabric imported from the Far East and its German fabric manufacturing business Hemmers-Itex.

Hemmers-Itex has seen sales increase but increased costs of overheads and interest charges has held back its profitabilitiy, although Leeds Group believes the investments in the company will bring future success.

However, the strength of the Euro against Sterling has had a positive impact on Hemmers-Itex’s results, with sales and profits increasing by £1.4m and £25,000 respectively.

Mr Wigley said Leeds Group had also continued with its share buyback programme, purchasing 380,000 shares in the first six months of the year.

Leeds Group has been established for more than a century and built its business around textile processing, specialising in fabric printing and yarn dyeing.