Positive outlook for textile group

TEXTILE company Leeds Group today said revenues for the first three months of its financial year were in line with management expectations.

In a trading update for the six months to March 31, prior to the release of its half year results, the group, which imports and distributes fabrics through the Hemmers-Itex operation in Germany, said that margins had improved and the business was trading profitably.

Revenue in the six month period has remained strong in Hemmers’ European business, whilst sales in its Chinese subsidiary are ahead of management expectations.

Margins have continued at their improved level, as a result of actions taken by the management team last year helped by some favourable foreign exchange movements.

The firm expects that the operating profit for the first half of the financial year will be ahead of expectations.