Leeds Group enjoys 400 per cent leap in profits

It said that revenues at its German-based Hemmers-Itex Textil import and export business rose to 14.8m in the six months to March 31, up from 13.2m the previous year.

The group said that improved margins were maintained throughout the six-month period and the Chinese subsidiary performed "very well". Chairman Ewen Wigley said: "It is particularly pleasing to report such positive news after a disappointing performance in the previous financial year."

Profit before tax for Hemmers was 843,000, up from 147,000, which included a gain on the valuation of financial derivatives of 193,000.

This compared with a 36,000 loss previously.

Debt in Hemmers was reduced by 1.16m.

Leeds Group continues to hold a stake in Dawson International and said any growth in the value of its shares would be based on a "resolution" of the Scottish firm's defined benefit pension scheme, which has significant liabilities.

Leeds Group recently lost a legal challenge to the decision by Leeds City Council to classify the land the firm owns at Haw Lane, Yeadon as town or village green.

The firm said it had made a provision of 61,000 to cover the costs of the action and it was taking legal advice on whether it should appeal against the decision.

Mr Wigley said: "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."

Earnings per share increased to 1.8p from 0.5p as a result of both the increased profit and the reduced number of shares in issue.

Leeds Group has continued to buy back shares, although liquidity has been limited.

During the six-month period, the company purchased 340,000 shares and cancelled a further 375,000 shares in order to comply with the Companies Act 2006 requirements.

In line with previous decisions, the board did not propose an interim dividend.

Mr Wigley said: "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."