Sales down at listed textiles wholesaler
Leeds Group, a wholesaler of fabrics and haberdashery, made a loss from continuing operations after tax of £712,000 (2018: profit of £814,000).
The company, which is based in Drighlington, Bradford, has presented its interim results for the six months ended 30 November 2019, in which it warns of difficult market conditions throughout Europe, with pricing pressure in all sectors.
The group’s business is conducted by its German trading subsidiary Hemmers/Itex Textil Import Export GmbH and Stoff-Ideen-KMR GmbH, a subsidiary of Hemmers also based in Germany.
Chinoh-Tex, Hemmer’s China based subsidiary, ceased trading in November 2019, so is reported as a discontinued operation.
The Group achieved sales from continuing operations in the period of £18.6m (2018: £20.3m). The loss associated with the discontinued operation was £416,000. The total Group loss after tax was £1.1m (2018: profit of £939,000).
Sales at Hemmers decreased to £14.5m (2018: £16.6m) with volumes down 11%.
Company chairman, Jan Holmstrom, said: “There has been an overall decline in the market with the result that competitors have been offering low prices in an effort to maintain market share, particularly in basic products.
“Management is focused on aligning the business with future demand and competing in markets where it can make acceptable margins.
“Sales at KMR increased to £4,075,000 (2018: £3,657,000) with the company reporting for six months compared with five months last year.
“The Board continues to believe the initiated cost reduction and efficiency programmes that are now in place will ensure costs are reduced to a level that are aligned to the reduced sales currently being experienced.
“This should ensure both Hemmers and KMR can return to profitability in the next financial year.”
