Further European Covid restrictions to hit textile wholesaler’s trade
Leeds Group, a wholesaler of fabrics and haberdasher, has recorded revenues from continuing operations of £19.9m (2019: £18.6m) in its unaudited interim results for the six months ended 30 November 2020.
The business has also reported a pre-tax profit of £735,000, compared with a £880,000 loss in 2019.
But its chairman says renewed restrictions in Germany to control Covid-19 are likely to affect trade at least until the end of the month.
The Group, headquartered in Drighlington, Bradford, conducts its work through a German trading subsidiary Hemmers/Itex Textil Import Export GmbH and Stoff-Ideen-KMR GmbH, a subsidiary of Hemmers also based in Germany.
Its directors’ have said they do not believe the UK’s departure from the EU will impact the Group, as its business is conducted entirely by the German incorporated firms , and their exports to the UK account for only about 3% of Group revenue.
Commenting on the business’s latest results, chairman Jan Holmstrom said even though the Covid-19 situation is still impacting the global economy, sales for Hemmers and KMR in the first six months of the financial year have been “higher than expected”.
But he added: “Since the half year end, there have been further countrywide restrictions imposed by the German government, which at present is expected to initially affect trading in both businesses from 16 December 2020 to 31 January 2021.
“KMR shops will be closed during this period and the business of Hemmers will be reduced, although online business will still be able to continue.
“Hemmers and KMR management will work hard to manage the situation and reduce all costs as far as possible given the reduced level of trading and both companies should benefit from any government financial support provided.
“I would like to thank all employees throughout the Group for their continued hard work and support.”