28th Jan 2019 09:58
LONDON (Alliance News) - Leeds Group PLC on Monday said it delivered a doubled profit in the first half of its current financial year, despite a slight decline in revenue due to reduced demand for its products.
The stock was trading 5.4% lower on Monday at 25.55 pence a share.
The textile manufacturer said pretax profit almost doubled to GBP1.2 million in the six months to the end of November from GBP628,000 reported the year before, despite revenue falling by 1.4% to GBP21.9 million from GBP22.2 million.
Leeds Group highlighted market conditions have been challenging during the period, with increased competition in a reduced market place.
Sales in its German trading subsidiary Hemmers decreased to EUR19.7 million in the first half from EUR23.1 million reported for the same period the year prior, mainly due to decreased demand.
In addition, Shanghai-based unit Chinoh-Tex delivered sales of EUR1.9 million, down from EUR2.1 million a year earlier.
Looking ahead, Leeds Group continues to expect overall year-on-year growth in earnings, despite the challenging market conditions.
"The group have implemented a number of cost reduction and efficiency plans throughout to ensure cost bases are reduced in accordance to the current market conditions to ensure the companies remain profitable," said Chair Jan Holmstrom.
Related Shares:
Leeds Group