Textile firm Leeds Group reports on 'difficult and disappointing' year

Leeds Group's results will be analysed by City analysts
Leeds Group's results will be analysed by City analysts
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Textile firm Leeds Group has reported an "extremely difficult and disappointing year" for the group.

The firm said trading conditions have been challenging with increased competition creating pressure on gross margins within both the wholesale and retail.

Leeds Group has reported its final results of the group for the year to May 31 2019. Its full year revenue was £41.27m compared with £41.54m in 2018.

The group's operating loss of £1,022,000 includes a goodwill impairment charge of £982,000.

Jan G Holmstrom, the company' chairman, said: "It has been an extremely difficult and disappointing year for the group. Trading conditions have continued to be challenging with increased competition creating pressure on gross margins within both the wholesale and retail textile markets. Hemmers-Itex Textile Import Export GmbH, the main trading subsidiary, has been affected by the deterioration in both its German and external markets.

"Trading conditions remain challenging and it will be a difficult year again in 2020, as it will take time for the decisions taken this year to fully translate into improved results. Given the steps that have been taken during the year to improve efficiencies which will reduce the cost level further and enable the group to compete with a more aggressive sales strategy to regain lost market share, the directors do believe the group will return to acceptable levels of profit in the forthcoming years, partly because of the potential for consolidation in the market as we expect some competitors to exit the market."