Leeds Group maintains improvement

TEXTILE firm Leeds Group said that revenues have remained strong in its Hemmers' European business and sales at its Chinese subsidiary are ahead of management expectations.

Margins have continued at their improved level, both as a result of the actions taken by management last year and through the help of favourable foreign exchange movements.

The company said it expects first half operating profits will be ahead of management's expectations and significantly better than last year.

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The Leeds-based company imports and distributes fabrics through its German based subsidiary Hemmers-Itex Textil Import Export.

The group's focus on reducing working capital has continued, leading to lower than expected debt levels at Hemmers-Itex.

Action has been taken to control costs and improve margins.

In December the group announced an annual loss in what it described as "difficult trading conditions".

The group made a pre-tax loss of 24,000 in the year to September 30, compared to a 522,000 profit in 2008.

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