Profits up at Leeds Group
YORKSHIRE textiles business Leeds Group today announced increased half year profits.
In its interim results for the six months to March 31, Leeds Group reported a
a profit after tax of £534,000, compared to a profit of £134,000 in the corresponding period last year.
Earnings per share increased to 1.8p compared to 0.5p in 2009 – a result of both the increased profit and the reduced number of shares in issue, Leeds Group said.
Revenue at its German-based Hemmers-Itex division increased to £14.8m from £13.2m last year.
Improved margins were maintained throughout the six month period and its Chinese subsidiary performed well, the group said.
Profit before tax for Hemmers was £843,000, which included a gain on valuation of financial derivatives of £193,000 and non-recurring reorganisation costs of £89,000.
Debt in Hemmers was reduced by £1.1m.
Leeds Group continues to hold an investment in Scottish textile firm Dawson International.
On the company’s involvement with Dawson, chairman Ewen Wigley said: “The board noted the 2009 results for Dawson issued in March of this year, which showed an operating profit from continuing operations and a debt free cash generative company, but where there is also a significant liability in a defined benefit pension scheme.
“Whilst Dawson has been active in restructuring itself during the last couple of years, the Leeds Group board believes that any growth in the value of Dawson’s shares will be subject to a satisfactory resolution of the pension scheme issues.”
Leeds Group also said that it is seeking a judicial review of the decision by Leeds City Council to classify the land that the group owns at Haw Lane in Yeadon as ‘town’ or ‘village green’.
Leeds Group is taking legal advice on whether it should appeal against the decision.
Mr Wigley added: “The board is grateful for the hard work put in by all staff to produce these improved results, in what has remained a challenging economic environment.
“Whilst exchange rate movements may not be as favourable in the second half of the financial year, sales have started well and the board looks forward to the remainder of 2010.”
