Leeds Group back in profit

TEXTILE business Leeds Group has bounced back into the black. 

The group made a profit after tax of £650,000 for the six months to the end of November 2013, compared with a loss of £166,000 in the corresponding period of 2012, which it said was severely influenced by the write off the group’s investment in Dawson International. Leeds Group was a shareholder in the Scottish cashmere clothing manufacturer Dawson International which went into administration in 2012 under the weight of pension obligations.

The business, which reported sales 14% higher than in the first half of last year,  also said today that it intends to increase the value of the group by making investments in businesses where it has relevant expertise but may not necessarily be operating in the textile industry and, in order to maximise funds available for this purpose, has not propose an interim dividend. 
 
Revenue at Hemmers Europe, the group’s German-based operating subsidiary, increased by 12% to £16,441,000, with half of the improvement coming from the translation impact. Revenue growth, in terms of Euro, was 6% and was, to a large extent, attributable to a new and successful relationship with a multinational customer that now offers under its own label a collection of fabrics supplied by Hemmers, the group said. Pre-tax profit for Hemmers Europe was £840,000, up from £697,000 in 2012.
 
External sales volumes and revenues in local currency at ChinohTex, the Chinese subsidiary of Hemmers, grew by 48% and 22% respectively over the corresponding period last year. Pre-tax profit in the period was £188,000, compared to £189,000 in 2012 but the group said  this was due to overhead growth to support additional staff.
 
Chairman, Kathryn Davenport, said: “Despite the improved performance in the first half of the current financial year, the economic environment in many of the markets in which the group operates remains fragile. Sales in the seasonally quiet month of December were broadly in line with the expectations of the Board and as we approach the traditionally busy first quarter of the New Year our order books are much as they were at this time last year. Nevertheless the seasonal nature of our businesses has led in recent years to first half profits running somewhat ahead of those of the second half.”