Leeds Group returns to profit

YORKSHIRE textiles business Leeds Group has returned to the black despite a challenging second half of the year.

For the year ended September 30, group profit before tax was £307,000, compared to a loss of £24,000 the previous year.

Revenues at its germany-based Hemmers-Itex division were up to £27.65m and its pre-tax profit was £586,000, compared to £128,000 in 2009.

Leeds Group, which isn’t proposing to pay a dividend as it continues to search for suitable investment opportunities, bought back 340,000 shares in the year at a cost of £49,000 and 375,000 shares were cancelled.

Chairman Ewen Wigley said the group’s second half was hit by movement of the Euro.

Leeds Group continues to hold approximately 29% of Dawson International, but despite Dawson being debt-free Mr Wigley said Leeds believes that any growth in the value of Dawson’s shares will be subject to a satisfactory resolution of its pension scheme issues.

Mr Wigley, who joined the board in 2004 and has been chairman of Leeds Group since 2007, has announced he is stepping dow from the Leeds board due to other work commitments.

“I would like to take this opportunity to thank all of the staff at Leeds for their hard work and commitment in what continues to be challenging economic times,” he said.

Trading in the first three months of the year has been ahead of budget, Leeds Group said.