Leeds Group enjoys profits growth

LEEDS Group has seen pre-tax profits grow to £809,000 despite a fall in sales at its main trading arm.

Fabric sales at Germany-based Hemmers-Itex fell 5.5% in the eight months to the end of May compared to the same period the previous year but higher prices for cotton goods helped its operating subsidiaries emerge with a pre-tax profit of £589,000.

Hemmers bank debt was reduced by £2.72m thanks to profit from trading and a reduction of more than £2 million in working capital.

Leeds Group also controls 29% of textile firm Dawson International which earlier this week warned it expected trading to be hit by increases in cashmere raw material prices.

Kathryn Davenport, Leeds Group chairman, said that any growth in the value of Dawson shares was dependent on finding a resolution to a longstanding issue with the company’s pension scheme.

A change in accounting date saw the company report figures for the eight months to the end of May this morning.