18th Aug 2014 09:19
LONDON (Alliance News) - Leeds Group PLC Monday reported an increase in profit and revenue for the full-year, reflecting a strong performance by its German arm.
The fabric importer, which operates through a German subsidiary and its Chinese unit, posted a pretax profit of GBP1.6 million for the period ended May 31, up from GBP695,000 a year earlier, as revenue rose to GBP24.2 million from GBP31.1 million a year earlier.
Leeds Group said sales volumes increased to 14.5 million metres from 13.2 million metres a year earlier.
The German trading subsidiary Hemmers Europe saw sales rise to GBP31.4 million from GBP28.2 million, said the company, attributing this volume growth as responsible for a significant increase in the rate and amount of gross profit.
ChinohTex, the Hemmers subsidiary based in Shanghai, produced "satisfactory results" in the first-half of the year, achieving significant volume growth thanks to sales of GBP531,000 to a single customer in Mexico. However, it said sales fell away sharply after the Chinese New Year in February and margins were under constant pressure.
Looking ahead, the company said it has identified potential growth opportunities for Hemmers. In addition Leeds Group said it will be increasing its focus on the European garment manufacturers and the market for accessories to be sold by its customers in retail outlets.
"We also intend in the year to provide customers of ChinohTex the opportunity to buy on-line," Leeds Group said.
Leeds Group shares were quoted up 4.6% at 34.00 pence Monday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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