28th Jul 2016 10:05
LONDON (Alliance News) - Fabric and haberdashery wholesaler Leeds Group PLC on Thursday said its pretax profit edged down in the year to the end of May, after one of its major German customers became bankrupt near the year-end.
The company, which operates the Hemmers fabric company, said its pretax profit came in 4.1% lower in its financial year, at GBP1.5 million down from GBP1.6 million, largely thanks to the bankruptcy late in the year of its major customer, though said this was covered in part by credit insurance.
However, Leeds Group said sales volumes increased over the year, across both its Chinese and European businesses to 16.0 million metres, compared to 15.8 million metres a year earlier, and its revenue rose 4.1% to GBP36.3 million from GBP34.9 million.
Leeds Group said it continued see potential growth in its traditional wholesale business, and said even greater potential exists in the retail business in which it has invested more recently.
Since the year end, Leeds Group said its sales have been in line with its expectations, but said it was not proposing any dividend for the year, in line with a year earlier, as funds are currently committed to complete the expansion of its Nodhorn facility in Germany.
Shares in Leeds Group were untraded on Thursday, having last traded at 38.00 pence.
By Hannah Boland; [email protected]; @Hannaheboland
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